Scotts Miracle-Gro Company (SMG)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 19.61 6.71 3.71 11.32 11.08 4.87 3.46 12.03 12.73 6.01 4.53 14.95 10.00 4.74 3.99 12.85 8.57 3.79 3.37 16.34
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
Working capital turnover 15.06 4.95 3.72 3.55 5.40 3.79 2.44 2.74 3.74 2.67 2.51 3.37 5.47 4.22 4.00 7.13 15.28 5.47 3.15 4.35

The activity ratios for Scotts Miracle-Gro Company over the past few quarters show fluctuations in the efficiency of its operations.

1. Inventory turnover: The company's inventory turnover has been relatively stable, ranging from 2.52 to 6.67 times per year. A higher turnover indicates that inventory is selling more quickly, which is favorable for cash flow and reducing carrying costs.

2. Receivables turnover: Scotts Miracle-Gro Company's receivables turnover has varied significantly, from 3.37 to 19.61 times per year. A high turnover suggests efficient collection of accounts receivable, while a lower turnover may indicate potential issues with credit policies or customer payments.

3. Payables turnover: The payables turnover ratio has fluctuated between 7.01 and 15.24 times per year. A higher turnover ratio suggests the company is paying its suppliers more frequently, potentially indicating strong liquidity or favorable credit terms.

4. Working capital turnover: The working capital turnover ratio has shown variability, ranging from 2.44 to 15.28 times per year. A higher turnover indicates the company is efficiently using its working capital to generate sales, while a lower turnover may signal inefficiencies in managing working capital.

Overall, while the activity ratios of Scotts Miracle-Gro Company have shown fluctuations, it is essential for the company to monitor and manage these ratios to ensure optimal efficiency in its operations and effectiveness in managing its resources.

Average number of days

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
Days of inventory on hand (DOH) days 64.57 63.59 86.08 120.73 88.45 92.13 98.59 130.84 113.97 115.83 143.08 145.06 96.24 80.22 87.16 99.98 62.67 54.70 90.22 109.87
Days of sales outstanding (DSO) days 18.62 54.42 98.37 32.24 32.93 74.93 105.61 30.34 28.68 60.76 80.56 24.42 36.49 76.92 91.56 28.40 42.59 96.32 108.44 22.34
Number of days of payables days 27.99 33.19 45.99 34.32 27.25 38.07 36.33 31.45 35.85 23.95 45.55 37.44 52.06 38.99 47.03 46.69 39.40 34.44 39.41 39.25

Days of Inventory on Hand (DOH) for Scotts Miracle-Gro Company has shown some fluctuations over the periods analyzed. The average DOH over these periods is roughly 100 days. The company appears to have been managing its inventory levels efficiently during some periods but faced challenges in other periods, with peaks reaching as high as 145 days and lows as low as 54 days.

Days of Sales Outstanding (DSO) for the company have also been variable over the same periods. The average DSO is around 55 days, indicating that on average, it takes the company 55 days to collect its sales revenue. There were significant fluctuations in DSO with peaks and troughs, suggesting varying levels of effectiveness in collecting receivables.

Number of Days of Payables for Scotts Miracle-Gro Company ranged from approximately 24 days to 52 days, with an overall average of about 37 days. This indicates that the company takes, on average, 37 days to pay its suppliers. The consistency in the number of days of payables shows a certain level of stability in the company's payment practices.

Overall, the activity ratios suggest that Scotts Miracle-Gro Company has been managing its inventory efficiently, with some periods showing room for improvement. The company's collection of receivables has been somewhat inconsistent, while its payment to suppliers has been relatively stable.

Long-term

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
Fixed asset turnover 5.69 5.65 5.35 5.33 5.52 5.92 6.08 6.32 6.28 6.48 7.22 7.54 7.77 8.62 8.68 7.94 7.27 6.89 6.25 5.77
Total asset turnover 1.21 0.97 0.83 0.88 0.99 0.78 0.72 0.83 0.89 0.81 0.72 0.89 1.01 1.09 0.99 1.11 1.20 0.95 0.81 0.91

The long-term activity ratios of Scotts Miracle-Gro Company indicate the efficiency of the company in utilizing its assets to generate sales over multiple periods.

1. Fixed asset turnover: This ratio measures how effectively the company is using its fixed assets to generate revenue. Scotts Miracle-Gro Company has maintained a relatively consistent fixed asset turnover ratio over the periods, ranging from 5.35 to 8.68. A higher ratio suggests better utilization of fixed assets to generate sales. The company's fixed asset turnover has generally been strong, with an average ratio of around 6.5 over the periods analyzed.

2. Total asset turnover: This ratio assesses how efficiently the company is generating sales relative to its total assets. Scotts Miracle-Gro Company's total asset turnover has varied more compared to the fixed asset turnover, ranging from 0.72 to 1.21. A higher total asset turnover indicates more efficient use of assets to generate sales. The company experienced fluctuations in this ratio, with the average total asset turnover being around 1.0 over the periods analyzed.

In summary, Scotts Miracle-Gro Company has shown strong efficiency in utilizing its fixed assets to generate revenue consistently over the periods, while its total asset turnover has shown more variability but remained relatively healthy. These ratios reflect the company's ability to deploy its assets effectively to drive sales and can help investors assess its operational efficiency and asset utilization strategies.