Scotts Miracle-Gro Company (SMG)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,446,000 | 3,542,700 | 3,415,800 | 4,084,500 | 4,256,800 | 4,302,600 | 4,435,600 | 4,066,500 | 4,169,800 | 4,272,700 | 4,380,700 | 4,267,900 | 3,900,000 | 3,621,800 | 3,290,600 | 3,007,000 | 2,877,200 | 2,828,600 | 2,850,100 | 2,735,800 |
| Inventory | US$ in thousands | 1,169,600 | 880,300 | 884,900 | 1,127,600 | 1,525,900 | 1,343,500 | 1,407,600 | 1,594,100 | 1,657,200 | 1,126,600 | 962,800 | 1,019,200 | 1,068,300 | 621,900 | 493,100 | 743,300 | 866,100 | 540,300 | 533,700 | 675,300 |
| Inventory turnover | 2.95 | 4.02 | 3.86 | 3.62 | 2.79 | 3.20 | 3.15 | 2.55 | 2.52 | 3.79 | 4.55 | 4.19 | 3.65 | 5.82 | 6.67 | 4.05 | 3.32 | 5.24 | 5.34 | 4.05 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,446,000K ÷ $1,169,600K
= 2.95
The inventory turnover ratio measures how efficiently a company manages its inventory by calculating how many times the company sells and replaces its average inventory during a specific period. A higher inventory turnover ratio indicates that the company is effectively selling its inventory and restocking it quickly.
Analyzing Scotts Miracle-Gro Company's inventory turnover ratio over the past 20 quarters, we observe fluctuations in the ratio. The inventory turnover ratio ranged from a low of 2.52 in March 2022 to a high of 6.67 in September 2020. The company has shown variability in managing its inventory efficiently during this period.
In the most recent quarter of December 2023, the inventory turnover ratio was 2.95, which indicates that the company turned over its inventory approximately 2.95 times during that quarter. Compared to the historical data, this ratio is on the lower side, suggesting that the company may not be effectively managing its inventory turnover in that period.
Overall, Scotts Miracle-Gro Company's inventory turnover ratios have shown some volatility over the past 20 quarters. It is essential for the company to closely monitor and improve its inventory management practices to ensure optimal utilization of resources and maintain profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023