Scotts Miracle-Gro Company (SMG)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,321,100 | 3,632,600 | 4,302,400 | 4,272,900 | 3,621,900 |
| Inventory | US$ in thousands | 587,500 | 880,300 | 1,343,500 | 1,126,600 | 621,900 |
| Inventory turnover | 5.65 | 4.13 | 3.20 | 3.79 | 5.82 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,321,100K ÷ $587,500K
= 5.65
The inventory turnover for Scotts Miracle-Gro Company has shown fluctuations over the past five years. In 2024, the inventory turnover ratio improved significantly to 5.65 compared to the previous year, indicating that the company's inventory was sold and replaced approximately 5.65 times during the year. This suggests a more efficient management of inventory compared to the previous year.
In 2023, the inventory turnover was 4.13, which showed an increase from 2022 but was still lower than the most recent year. It indicates that the company took slightly longer to sell and replace its inventory compared to 2024.
The inventory turnover was lowest in 2022 at 3.20, signifying a decrease in the efficiency of inventory management compared to the surrounding years. However, it improved to 3.79 in 2021, showing a partial recovery in inventory turnover efficiency.
The highest inventory turnover of 5.82 was recorded in 2020, indicating a peak in the efficiency of managing inventory during that year. Overall, while there have been fluctuations in inventory turnover, the trend has shown improvements in recent years, indicating better management of inventory levels by Scotts Miracle-Gro Company.
Peer comparison
Sep 30, 2024