Scotts Miracle-Gro Company (SMG)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 10,400 | 31,900 | 27,400 | 25,000 | 25,600 | 86,800 | 27,800 | 17,100 | 16,400 | 244,100 | 58,300 | 14,400 | 21,500 | 16,600 | 48,300 | 30,800 | 27,400 | 18,800 | 36,400 | 37,500 |
| Short-term investments | US$ in thousands | — | — | 16,300 | 12,700 | 14,200 | 117,000 | 8,000 | — | — | 207,000 | 224,000 | — | 202,000 | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.01 | 0.04 | 0.03 | 0.03 | 0.04 | 0.21 | 0.03 | 0.01 | 0.02 | 0.40 | 0.27 | 0.01 | 0.21 | 0.02 | 0.04 | 0.03 | 0.04 | 0.03 | 0.04 | 0.03 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($10,400K
+ $—K)
÷ $764,100K
= 0.01
The cash ratio of Scotts Miracle-Gro Company has shown some fluctuations over the past few quarters. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents.
The ratio ranged from 0.01 to 0.04 in most quarters, implying that the company has limited cash reserves compared to its current liabilities. In some quarters, such as September 2022 and June 2021, the cash ratio significantly improved to 0.21 and 0.27, respectively, suggesting strong liquidity positions during those periods.
Overall, the company's cash ratio has been relatively low, hovering around 0.01 to 0.04 for the majority of the quarters, indicating a potential need to improve its liquidity position to effectively cover short-term obligations with readily available cash. Further monitoring of the cash management practices and liquidity position is recommended to ensure the company's financial stability.
Peer comparison
Dec 31, 2023