Scotts Miracle-Gro Company (SMG)
Quick ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 71,600 | 279,900 | 65,100 | 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 |
| Short-term investments | US$ in thousands | — | 11,800 | 5,800 | 14,400 | 16,700 | 16,300 | 12,700 | 14,200 | 117,000 | 8,000 | — | — | 207,000 | 224,000 | — | 202,000 | — | — | — | — |
| Receivables | US$ in thousands | 176,800 | 504,600 | 876,900 | 287,600 | 304,200 | 717,700 | 1,035,700 | 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 |
| Total current liabilities | US$ in thousands | 750,300 | 854,400 | 1,060,300 | 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 |
| Quick ratio | 0.33 | 0.93 | 0.89 | 0.41 | 0.46 | 0.57 | 0.78 | 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 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($71,600K
+ $—K
+ $176,800K)
÷ $750,300K
= 0.33
The quick ratio of Scotts Miracle-Gro Company has fluctuated over the periods analyzed. The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 suggests that the company may struggle to cover its short-term debts with its liquid assets alone.
Based on the data provided:
- The quick ratio ranged from 0.33 to 1.29 over the past 20 quarters.
- The lowest quick ratio of 0.33 was reported in September 2024, indicating a potential liquidity challenge at that time.
- The highest quick ratio of 1.29 occurred in June 2021, signaling a strong ability to cover short-term obligations with liquid assets.
- Overall, the quick ratio has shown variability, with periods of both weaker and stronger liquidity positions.
It is crucial for Scotts Miracle-Gro Company to closely monitor its quick ratio to ensure it maintains adequate liquidity to meet its short-term financial commitments. Further analysis and comparisons with industry benchmarks may help provide insights into the company's liquidity management performance.
Peer comparison
Sep 30, 2024