Scotts Miracle-Gro Company (SMG)

Liquidity ratios

	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
Current ratio	2.20	1.81	1.69	2.07	2.47	2.06	2.42	2.21	2.51	1.77	2.15	1.91	1.59	1.28	1.61	2.08	2.19	1.68	1.45	1.59
Quick ratio	0.39	0.43	0.57	0.03	0.38	0.52	0.66	0.69	0.36	0.82	1.29	0.92	0.54	0.52	0.92	1.05	0.36	0.39	0.45	0.64
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

The current ratio for Scotts Miracle-Gro Company has generally remained healthy, indicating its ability to cover short-term liabilities with current assets over the timeframe provided. The current ratio fluctuated between 1.69 to 2.51, with a peak at 2.51 in December 2021 and a low of 1.69 in June 2023.

However, the quick ratio displays more volatility, reflecting the company's ability to meet its short-term obligations without relying on inventory. The quick ratio ranged from a low of 0.03 in March 2020 to a high of 1.29 in June 2021, showing some inconsistency in liquid asset coverage.

In contrast, the cash ratio, which indicates the company's ability to cover immediate liabilities with cash and cash equivalents, saw significant fluctuations. The cash ratio ranged between 0.01 to 0.40, with a notable spike in September 2021 and a general trend of variability.

Overall, while the current ratio generally shows stability, the quick and cash ratios reflect more variability in Scotts Miracle-Gro Company's liquidity position over the given periods. Investors may want to pay closer attention to the company's ability to meet its short-term obligations without relying on inventory or other potentially less liquid assets.

Additional liquidity measure

		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 conversion cycle	days	120.44	95.22	129.39	63.63	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	68.65	87.80	140.18

The cash conversion cycle for Scotts Miracle-Gro Company has shown fluctuations over the past few quarters. The cycle measures the time it takes for the company to convert its investments in inventory into cash flows from sales.

Analyzing the data, we can see that the cash conversion cycle ranged from a low of 63.63 days in March 2023 to a high of 178.09 days in March 2022. A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital, while a higher cycle suggests that there may be inefficiencies in the management of inventory, accounts receivable, or accounts payable.

It is important to note that a longer cash conversion cycle can tie up cash and potentially impact liquidity, while a shorter cycle can indicate better cash flow management. It is essential for Scotts Miracle-Gro Company to closely monitor and manage its cash conversion cycle to ensure optimal working capital performance and overall financial health.