Scotts Miracle-Gro Company (SMG)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -179,900 | -174,400 | 17,800 | -622,000 | -440,300 | -433,900 | -247,200 | 617,400 | 653,600 | 723,000 | 769,800 | 752,200 | 681,800 | 585,200 | 521,700 | 495,400 | 431,900 | 409,600 | 316,300 | 243,800 |
| 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 |
| Operating profit margin | -5.45% | -5.10% | 0.50% | -17.14% | -11.75% | -11.40% | -6.10% | 13.76% | 14.07% | 14.95% | 15.33% | 15.34% | 15.30% | 14.38% | 14.19% | 14.80% | 13.72% | 13.32% | 10.50% | 8.59% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-179,900K ÷ $3,303,900K
= -5.45%
The operating profit margin of Scotts Miracle-Gro Company has shown fluctuations over the past few quarters. From December 2019 to March 2021, the company consistently improved its operating profit margin from 10.50% to 15.34%. However, in the quarters following March 2021, the operating profit margin started to decline gradually. Notably, in the latest quarter ending December 2023, the company reported a negative operating profit margin of -5.45%, indicating that operating expenses exceeded operating income.
The significant drop in operating profit margin from March 2021 to December 2023 suggests that the company may be facing challenges in controlling its operating costs or experiencing a decrease in sales revenue relative to costs. This trend raises concerns about the company's overall profitability and operational efficiency. Further analysis of the company's financial and operational performance would be necessary to understand the underlying reasons for the declining operating profit margin and to identify potential strategies for improvement.
Peer comparison
Dec 31, 2023