Scotts Miracle-Gro Company (SMG)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 980,400 | 1,397,800 | 1,981,900 | 2,024,000 | 1,216,600 |
| Total current liabilities | US$ in thousands | 750,300 | 773,700 | 963,900 | 1,140,400 | 950,400 |
| Current ratio | 1.31 | 1.81 | 2.06 | 1.77 | 1.28 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $980,400K ÷ $750,300K
= 1.31
The current ratio of Scotts Miracle-Gro Company has shown fluctuations over the past five years, ranging from 1.28 in 2020 to 2.06 in 2022. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio is generally considered favorable as it indicates a greater ability to cover short-term liabilities.
In 2024, the current ratio decreased to 1.31 from 1.81 in 2023, signaling a potential decrease in liquidity compared to the previous year. However, it is important to note that a current ratio of 1.31 still indicates that Scotts Miracle-Gro Company has sufficient current assets to cover its current liabilities.
Overall, while the current ratio has shown some fluctuation, it indicates that the company has managed to maintain a level of liquidity that enables it to meet its short-term financial obligations over the years. Continued monitoring of the current ratio will be important to assess the company's ability to manage its short-term liquidity effectively.
Peer comparison
Sep 30, 2024