Scotts Miracle-Gro Company (SMG)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,553,100 | 3,371,900 | 3,804,700 | 4,835,700 | 4,051,100 |
| Receivables | US$ in thousands | 176,800 | 304,200 | 299,000 | 483,400 | 474,800 |
| Receivables turnover | 20.10 | 11.08 | 12.72 | 10.00 | 8.53 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,553,100K ÷ $176,800K
= 20.10
The receivables turnover ratio for Scotts Miracle-Gro Company has shown a positive trend over the past five years, increasing from 8.53 in 2020 to 20.10 in 2024. This indicates that the company is collecting its accounts receivable more efficiently each year, with a significant improvement in 2024 compared to previous years.
A higher receivables turnover ratio signifies that Scotts Miracle-Gro Company is collecting its outstanding receivables faster, which is a positive indicator of strong liquidity and efficient management of its accounts receivable. This may suggest effective credit policies, timely collection efforts, and possibly a strong customer base that pays promptly.
Overall, the increasing trend in receivables turnover ratio reflects positively on Scotts Miracle-Gro Company's financial management and operational efficiency in managing its accounts receivable.
Peer comparison
Sep 30, 2024