Scotts Miracle-Gro Company (SMG)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,466,200 | 3,384,300 | 3,253,700 | 3,255,600 | 3,371,900 | 3,496,100 | 3,579,600 | 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 |
| Total current assets | US$ in thousands | 980,400 | 1,538,400 | 1,935,100 | 1,681,400 | 1,397,800 | 2,251,000 | 2,842,400 | 2,299,300 | 1,981,900 | 2,588,700 | 3,254,400 | 2,292,600 | 2,024,000 | 2,226,000 | 2,573,700 | 1,679,500 | 1,216,600 | 1,778,800 | 2,042,400 | 1,332,800 |
| Total current liabilities | US$ in thousands | 750,300 | 854,400 | 1,060,300 | 764,100 | 773,700 | 1,329,100 | 1,372,500 | 931,700 | 963,900 | 1,071,900 | 1,470,300 | 915,200 | 1,140,400 | 1,036,800 | 1,347,500 | 1,054,500 | 950,400 | 1,106,700 | 981,200 | 609,700 |
| 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 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,466,200K ÷ ($980,400K – $750,300K)
= 15.06
The working capital turnover ratio for Scotts Miracle-Gro Company has shown fluctuations over the past several quarters. The ratio measures how efficiently the company is using its working capital to generate sales revenue. A higher ratio indicates that the company is effectively utilizing its working capital to generate sales, while a lower ratio may suggest inefficiencies in managing working capital.
Looking at the trend, the working capital turnover ratio has seen significant variability, with values ranging from a low of 2.44 to a high of 15.28. The ratio peaked in the most recent quarter at 15.06, which suggests that the company has been more efficient in using its working capital to generate sales revenue compared to previous periods.
However, it's important to note that the ratio has fluctuated considerably over the past several quarters, indicating potential volatility in the company's working capital management. Investors and analysts may want to delve deeper into the underlying reasons for these fluctuations to assess the company's financial health and operational efficiency accurately.
In conclusion, Scotts Miracle-Gro Company's working capital turnover ratio has shown variability over the periods analyzed, with the most recent quarter demonstrating improved efficiency in utilizing working capital to generate sales revenue. Further analysis and monitoring of this ratio will be crucial to understand the company's financial performance and working capital management moving forward.
Peer comparison
Sep 30, 2024