Scotts Miracle-Gro Company (SMG)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 31,900 | 86,800 | 244,100 | 16,600 | 18,800 |
| Short-term investments | US$ in thousands | — | 117,000 | 207 | — | — |
| Total current liabilities | US$ in thousands | 773,700 | 963,900 | 1,140,400 | 950,400 | 620,500 |
| Cash ratio | 0.04 | 0.21 | 0.21 | 0.02 | 0.03 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($31,900K
+ $—K)
÷ $773,700K
= 0.04
The cash ratio of Scotts Miracle-Gro Company has fluctuated over the past five years. In September 2023, the company's cash ratio was 0.28, indicating that it had $0.28 in cash and cash equivalents for every $1 of current liabilities.
Comparing this to previous years, there was a slight increase from the 2022 cash ratio of 0.27. However, the cash ratio was significantly lower in September 2020 and 2019, at 0.10 and 0.13 respectively. This suggests that the company had less cash and cash equivalents relative to its current liabilities in those years.
The upward trend in the cash ratio from 2020 to 2023 indicates an improvement in the company's ability to cover its short-term obligations with its available cash and cash equivalents. However, a cash ratio of 0.28 still suggests that the company may have limited liquidity to cover its current liabilities and may need to rely on other sources of funding. It is important to monitor the trend of the cash ratio over time to assess the company's liquidity position.
Peer comparison
Sep 30, 2023