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Scotts Miracle Gro Co (NYSE:SMG)
Cash and Cash Equivalents
$147 Mil (As of Jun. 2014)

Scotts Miracle Gro Co's quarterly cash and cash equivalents increased from Dec. 2013 ($124.60 Mil) to Mar. 2014 ($152.70 Mil) but then declined from Mar. 2014 ($152.70 Mil) to Jun. 2014 ($147.20 Mil).

Scotts Miracle Gro Co's annual cash and cash equivalents increased from Sep. 2011 ($130.90 Mil) to Sep. 2012 ($131.90 Mil) but then declined from Sep. 2012 ($131.90 Mil) to Sep. 2013 ($129.80 Mil).


Definition

Cash and cash equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash, such as money market holdings, short-term government bonds or Treasury bills, marketable securities and commercial paper.


Explanation

A high number means either:

1) The company has competitive advantage generating lots of cash

2) Just sold a business or bonds (not necessarily good)

A low stockpile of cash usually means poor to mediocre economics.

There are 3 ways to create large cash reserve.

1) Sell new bonds or equity to public

2) Sell business or asset

3) It has an ongoing business generating more cash than it burns (usually means durable competitive advantage)

When a company is suffering a short term problem, Buffett looks at cash or marketable securities to see whether it has the financial strength to ride it out.

Important: Lots of cash and marketable securities + little debt = good chance that the business will sail on through tough times.

Test to see what is creating cash by looking at past 7 yrs of balance sheets. This will reveal how the cash was created.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Scotts Miracle Gro Co Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
CashAndCashEquivalents 116804868857288131132130

Scotts Miracle Gro Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
CashAndCashEquivalents 12213213211699105130125153147
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