Scotts Miracle-Gro Company (SMG)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,397,800 | 1,981,900 | 2,024,000 | 1,216,600 | 1,041,700 |
| Total current liabilities | US$ in thousands | 773,700 | 963,900 | 1,140,400 | 950,400 | 620,500 |
| Current ratio | 1.81 | 2.06 | 1.77 | 1.28 | 1.68 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,397,800K ÷ $773,700K
= 1.81
The current ratio of Scotts Miracle-Gro Company has shown fluctuation over the past five years, standing at 1.81 in 2023, 2.06 in 2022, 1.77 in 2021, 1.28 in 2020, and 1.68 in 2019. The current ratio measures the company's ability to meet its short-term obligations using its current assets. A higher current ratio indicates better liquidity and financial health, as it means the company has more current assets to cover its short-term liabilities.
The current ratio of 1.81 in 2023 suggests that the company has $1.81 in current assets for every $1 of current liabilities, reflecting a healthy liquidity position. However, it is important to note the decreasing trend in the current ratio from 2022 to 2023, which may warrant closer attention to the management of current assets and liabilities. The peak ratio of 2.06 in 2022 indicates a particularly strong liquidity position, possibly due to effective management of current assets and liabilities in that period.
Overall, while the current ratio demonstrates the company's ability to cover short-term obligations, the fluctuation in the ratio over the past five years may indicate varying levels of liquidity and the need for diligent management of working capital.
Peer comparison
Sep 30, 2023