Scotts Miracle-Gro Company (SMG)
Inventory turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,321,200 | 3,482,900 | 3,495,400 | 3,536,000 | 3,632,700 | 3,505,800 | 4,174,500 | 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 |
| Inventory | US$ in thousands | 587,500 | 606,800 | 824,300 | 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 |
| Inventory turnover | 5.65 | 5.74 | 4.24 | 3.02 | 4.13 | 3.96 | 3.70 | 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 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,321,200K ÷ $587,500K
= 5.65
The inventory turnover ratio for Scotts Miracle-Gro Company has seen fluctuations over the recent quarters. The inventory turnover ratio indicates how many times a company sells and replaces its inventory during a specific period.
In the latest quarter, ending September 30, 2024, the inventory turnover ratio was 5.65, demonstrating that the company sold and replaced its inventory approximately 5.65 times during that period. This is slightly lower than the ratio of 5.74 in the preceding quarter, indicating a minor decrease in the efficiency of inventory management.
Looking further back, the trend in inventory turnover ratios fluctuates, with some quarters showing higher turnover (e.g., 6.67 in September 2020) and some quarters showing lower turnover (e.g., 2.52 in December 2021). Generally, a higher inventory turnover ratio implies more efficient inventory management, as inventory is being sold and replenished more quickly.
It is essential for Scotts Miracle-Gro Company to closely monitor its inventory turnover ratio and strive for consistency and improvement. Fluctuations in this ratio can provide insights into the company's sales trends, inventory management practices, and potential supply chain issues that may need to be addressed for improved efficiency and profitability.
Peer comparison
Sep 30, 2024
Sep 30, 2024