Scotts Miracle-Gro Company (SMG)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,371,900 | 3,804,700 | 4,835,700 | 4,051,100 | 3,315,200 |
| Receivables | US$ in thousands | 304,200 | 299,000 | 483,400 | 474,800 | 223,900 |
| Receivables turnover | 11.08 | 12.72 | 10.00 | 8.53 | 14.81 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,371,900K ÷ $304,200K
= 11.08
The receivables turnover ratio for Scotts Miracle-Gro Company has shown a consistent improvement over the past five years. The ratio increased from 7.45 in 2019 to 11.67 in 2023, indicating that the company's efficiency in collecting outstanding receivables has improved significantly. This trend suggests that the company has been able to effectively manage its accounts receivable, converting them into cash at a faster rate.
A higher receivables turnover ratio is generally seen as a positive indicator, reflecting the company's ability to efficiently collect payments from its customers. This may be attributed to effective credit policies, prompt invoicing, and a diligent approach to managing collections.
The improvement in receivables turnover suggests that Scotts Miracle-Gro has been successful in optimizing its working capital and maintaining a healthy cash flow position. It may also indicate that the company has been successful in maintaining good relationships with its customers, resulting in timely payment of outstanding receivables.
Overall, the increasing trend in receivables turnover ratio demonstrates the company's effectiveness in managing its accounts receivable and signals a positive aspect of its financial performance and operational efficiency.
Peer comparison
Sep 30, 2023