Scotts Miracle-Gro Company (SMG)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 623,800 | 657,300 | 643,500 | 674,200 | 849,900 | 872,900 | 1,069,900 | 1,327,900 | 1,397,000 | 1,469,100 | 1,558,900 | 1,591,000 | 1,483,700 | 1,347,100 | 1,220,600 | 1,117,300 | 1,039,200 | 1,019,500 | 1,003,700 | 927,900 |
| Revenue (ttm) | US$ in thousands | 3,303,900 | 3,420,200 | 3,544,400 | 3,627,900 | 3,746,500 | 3,804,800 | 4,053,200 | 4,485,900 | 4,645,300 | 4,835,600 | 5,020,100 | 4,904,700 | 4,455,300 | 4,068,600 | 3,676,000 | 3,348,000 | 3,148,900 | 3,076,000 | 3,012,200 | 2,839,200 |
| Gross profit margin | 18.88% | 19.22% | 18.16% | 18.58% | 22.69% | 22.94% | 26.40% | 29.60% | 30.07% | 30.38% | 31.05% | 32.44% | 33.30% | 33.11% | 33.20% | 33.37% | 33.00% | 33.14% | 33.32% | 32.68% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $623,800K ÷ $3,303,900K
= 18.88%
The gross profit margin of Scotts Miracle-Gro Company has displayed fluctuations over the periods indicated in the table. It can be observed that the gross profit margin has fluctuated between 18.16% to 33.30% over the last 20 quarters. In recent quarters, the gross profit margin has been on a gradual decline from 22.69% in December 2022 to 18.88% in December 2023.
The significant drop in gross profit margin from 2019 to 2021 reflects a decline in profitability over this period. However, there was a slight recovery in the gross profit margin in the subsequent quarters. The peak gross profit margin was achieved in March 2021 at 33.30%.
A declining gross profit margin could indicate challenges such as increasing production costs, pricing pressures, or inefficiencies in cost management. On the other hand, an improving trend in the gross profit margin could signal better cost control, pricing strategies, or operational efficiencies.
Overall, analyzing the trend in the gross profit margin provides insights into the company's ability to generate profits from its core operations and can be an important indicator of its financial health and operational performance.
Peer comparison
Dec 31, 2023