Scotts Miracle-Gro Company (SMG)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 1,041,700 | 1,389,900 | 1,839,400 |
| Total current liabilities | US$ in thousands | 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 | 620,500 | 955,400 | 1,159,900 |
| Working capital turnover | 3.60 | 5.48 | 3.84 | 2.47 | 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 | 7.30 | 6.93 | 4.18 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,303,900K ÷ ($1,681,400K – $764,100K)
= 3.60
The working capital turnover ratio for Scotts Miracle-Gro Company has fluctuated over the past several quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
In the most recent quarter, ending December 31, 2023, the working capital turnover was 3.60, showing a slight decrease from the previous quarter. This suggests that for every dollar of working capital, the company generated $3.60 of sales during that period.
Looking at the trend over the past year, there have been variations in the working capital turnover ratio, with some quarters showing higher efficiency in utilizing working capital compared to others. For example, the highest ratio of 15.28 was observed in September 2020, implying exceptionally efficient utilization of working capital to drive sales.
Overall, the fluctuating nature of the working capital turnover ratio indicates that Scotts Miracle-Gro Company's management may need to focus on better managing its working capital to optimize operational efficiency and enhance profitability in the future.
Peer comparison
Dec 31, 2023