Scotts Miracle-Gro Company (SMG)
Quick 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 | 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 | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 287,600 | 304,200 | 717,700 | — | 311,400 | 299,000 | 674,700 | 990,100 | 310,800 | 483,400 | 1,058,000 | 1,230,300 | 346,600 | 474,800 | 970,100 | 994,700 | 192,700 | 223,900 | 395,800 | 699,600 |
| 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 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($10,400K
+ $—K
+ $287,600K)
÷ $764,100K
= 0.39
The quick ratio of Scotts Miracle-Gro Company has shown fluctuating trends over the past few quarters. The quick ratio is a measure of a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
From the analysis of the quick ratio data:
- The quick ratio has been below 1 for most periods, implying that Scotts Miracle-Gro may have difficulty covering its short-term obligations with its quick assets alone.
- There was a significant decrease in the quick ratio from the fourth quarter of 2023 to the first quarter of 2024, where it dipped to 0.03, suggesting a potential liquidity challenge during that period.
- The quick ratio improved in the second quarter of 2024, reaching 0.57, showing a better ability to meet short-term obligations with liquid assets.
- The quick ratio peaked at 1.29 in the third quarter of 2021, indicating strong liquidity at that point in time.
- Overall, the company's liquidity position seems to have fluctuated, highlighting the importance of monitoring liquidity closely to ensure the company can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023