Scotts Miracle-Gro Company (SMG)
Receivables turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,303,900 | 3,420,200 | 3,544,400 | 3,627,900 | 3,746,500 | 3,804,800 | 4,053,200 | 4,485,900 | 4,645,300 | 4,835,600 | 5,020,100 | 4,904,700 | 4,455,300 | 4,068,600 | 3,676,000 | 3,348,000 | 3,148,900 | 3,076,000 | 3,012,200 | 2,839,200 |
| Receivables | US$ in thousands | 287,600 | 304,200 | 717,700 | — | 311,400 | 299,000 | 674,700 | 990,100 | 310,800 | 483,400 | 1,058,000 | 1,230,300 | 346,600 | 474,800 | 970,100 | 994,700 | 192,700 | 223,900 | 395,800 | 699,600 |
| Receivables turnover | 11.49 | 11.24 | 4.94 | — | 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 | 13.74 | 7.61 | 4.06 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,303,900K ÷ $287,600K
= 11.49
The receivables turnover ratio for Scotts Miracle-Gro Company has shown fluctuations over the past few quarters.
The trend indicates that the company's ability to collect outstanding receivables has varied significantly. The ratio provides insight into how efficiently the company is managing its credit sales and collecting payments from its customers.
In the most recent quarter, the receivables turnover ratio was 11.49, which indicates that the company collected its outstanding receivables approximately 11.49 times during the period. This suggests strong efficiency in collecting payments from customers.
However, looking at historical data, we observe fluctuations in the ratio, with some quarters showing lower turnover rates. For example, in the quarter ending June 30, 2023, the ratio dropped to 4.94, indicating a slower collection of receivables during that period.
Overall, the company should focus on maintaining a consistent and healthy receivables turnover ratio to ensure efficient management of credit sales and timely collection of payments. It may be pertinent to investigate the reasons behind the fluctuations in the ratio and implement strategies to improve receivables management.
Peer comparison
Dec 31, 2023