Scotts Miracle-Gro Company (SMG)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.94% | 19.49% | 22.94% | 30.38% | 33.25% |
| Operating profit margin | 5.88% | -5.17% | -11.41% | 14.95% | 14.45% |
| Pretax margin | -0.66% | -13.44% | -14.67% | 13.90% | 12.62% |
| Net profit margin | -0.98% | -11.27% | -11.50% | 10.60% | 9.56% |
The profitability ratios of Scotts Miracle-Gro Company have shown variability over the past five years. The gross profit margin has fluctuated between 19.49% to 33.25%, with a higher margin in 2020 which has been declining since. This indicates the efficiency of the company in generating revenue after accounting for the cost of goods sold.
On the other hand, the operating profit margin has been negative in 2023 and 2022, indicating that the company had incurred operating losses during those years. However, the margin turned positive in 2021 and increased to 5.88% in 2024. This suggests that the company has been able to control its operating expenses better in the recent years.
The pretax margin has also been negative in 2023 and 2022 but improved to 13.90% in 2021 before turning negative again in 2024. This ratio reflects the company's ability to generate profits before accounting for taxes.
Similarly, the net profit margin has been negative in 2023 and 2022 but improved to 10.60% in 2021 before turning negative again in 2024. This ratio indicates the company's ability to generate profits after all expenses and taxes have been accounted for.
Overall, the profitability ratios of Scotts Miracle-Gro Company show a mix of positive and negative trends, indicating fluctuations in its profitability over the years. Further analysis of the company's financial performance and operational efficiency would be required to understand the factors contributing to these changes in profitability ratios.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.27% | -5.11% | -10.10% | 15.06% | 17.31% |
| Return on assets (ROA) | -1.22% | -11.13% | -10.18% | 10.68% | 11.46% |
| Return on total capital | 7.58% | -12.02% | -14.80% | 23.11% | 27.45% |
| Return on equity (ROE) | — | — | -296.21% | 50.58% | 55.57% |
The profitability ratios of Scotts Miracle-Gro Company have shown significant fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has been positive in the most recent two years (7.27% in 2024 and 15.06% in 2021), indicating the company's success in generating operating profits from its assets. However, there were negative figures in 2023 and 2022, suggesting operational challenges during those periods.
2. Return on assets (ROA) also displayed a mix of positive and negative values, with notably low figures in 2023 and 2022. The negative ROA in 2021 (-11.13%) and 2020 (-10.18%) indicates that the company faced challenges in generating profits relative to its total assets during those years.
3. Return on total capital exhibited fluctuations, with negative values in 2023 and 2022, followed by a significant increase in 2021. The positive return in 2024 (7.58%) suggests an improvement in utilizing the total capital to generate profits.
4. Return on equity (ROE) saw an extreme drop in 2022 to -296.21%, indicating substantial losses relative to shareholders' equity during that period. However, the improvement seen in 2021 (50.58%) and 2020 (55.57%) suggests better profitability in comparison to shareholders' investments.
Overall, the company's profitability ratios indicate a mix of positive and negative trends over the years, demonstrating fluctuations in operational efficiency and profitability levels. Further analysis of the company's financial performance and operational strategies would be needed to understand the underlying factors driving these changes.