Scotts Miracle-Gro Company (SMG)
Payables 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 |
| Payables | US$ in thousands | 254,700 | 316,700 | 440,400 | 332,500 | 271,200 | 365,700 | 415,500 | 366,800 | 422,600 | 291,000 | 507,500 | 427,700 | 609,400 | 467,900 | 549,900 | 498,900 | 391,000 | 310,500 | 324,700 | 309,400 |
| Payables turnover | 13.04 | 11.00 | 7.94 | 10.63 | 13.39 | 9.59 | 10.05 | 11.61 | 10.18 | 15.24 | 8.01 | 9.75 | 7.01 | 9.36 | 7.76 | 7.82 | 9.26 | 10.60 | 9.26 | 9.30 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,321,200K ÷ $254,700K
= 13.04
The payables turnover ratio for Scotts Miracle-Gro Company has varied over the past few years, indicating fluctuations in the company's efficiency in managing its accounts payable. The ratio measures how quickly the company pays off its suppliers.
The payables turnover ratio has ranged from a low of 7.01 to a high of 15.24 over the past several quarters. A higher ratio suggests that the company is paying off its suppliers more quickly, which could indicate strong cash flow management or effective supplier relationships.
In general, the upward trend seen in the most recent quarters suggests an improvement in the company's ability to manage its payables efficiently. It is important to note that while a high payables turnover ratio could be positive, it could also indicate that the company is demanding overly stringent payment terms from suppliers.
Overall, the payables turnover ratio provides insight into how effectively Scotts Miracle-Gro is managing its accounts payable and its relationships with suppliers.
Peer comparison
Sep 30, 2024