Scotts Miracle-Gro Company (SMG)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 64.57 | 63.59 | 86.08 | 120.73 | 88.45 | 92.13 | 98.59 | 130.84 | 113.97 | 115.83 | 143.08 | 145.06 | 96.24 | 80.22 | 87.16 | 99.98 | 62.67 | 54.70 | 90.22 | 109.87 |
| Days of sales outstanding (DSO) | days | 18.62 | 54.42 | 98.37 | 32.24 | 32.93 | 74.93 | 105.61 | 30.34 | 28.68 | 60.76 | 80.56 | 24.42 | 36.49 | 76.92 | 91.56 | 28.40 | 42.59 | 96.32 | 108.44 | 22.34 |
| Number of days of payables | days | 27.99 | 33.19 | 45.99 | 34.32 | 27.25 | 38.07 | 36.33 | 31.45 | 35.85 | 23.95 | 45.55 | 37.44 | 52.06 | 38.99 | 47.03 | 46.69 | 39.40 | 34.44 | 39.41 | 39.25 |
| Cash conversion cycle | days | 55.19 | 84.82 | 138.46 | 118.65 | 94.13 | 128.98 | 167.87 | 129.73 | 106.81 | 152.64 | 178.09 | 132.04 | 80.67 | 118.16 | 131.69 | 81.69 | 65.86 | 116.58 | 159.25 | 92.96 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 64.57 + 18.62 – 27.99
= 55.19
The cash conversion cycle of Scotts Miracle-Gro Company has shown fluctuations over the past eight quarters. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
- The company's cash conversion cycle was longest in Q1 2022 at 178.09 days, indicating a longer time to convert investments into cash.
- The cycle decreased significantly in Q2 2022 to 152.64 days but increased again in Q3 2022 to 106.81 days, suggesting instability in the company's working capital management during this period.
- In Q1 2023 and Q2 2023, the cycle increased further to 167.87 days and 128.98 days, respectively, which may indicate challenges in managing inventory and accounts receivable efficiently.
- Improvements were observed in Q3 2023 and Q4 2023 with the cash conversion cycle decreasing to 94.13 days and 118.65 days, respectively, showing a more efficient conversion of resources into cash flows.
- However, the cycle increased in Q1 2024 to 138.46 days, signaling a potential need for enhanced working capital management strategies.
- The most recent data for Q2 2024 showed a decrease in the cash conversion cycle to 84.82 days, indicating a positive trend in the company's ability to manage its working capital more effectively.
- Overall, Scotts Miracle-Gro Company's cash conversion cycle has shown variability, highlighting the importance of closely monitoring working capital efficiency to sustain healthy cash flow operations and optimize financial performance.
Peer comparison
Sep 30, 2024