Scotts Miracle-Gro Company (SMG)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 208,800 | -174,400 | -434,000 | 723,000 | 585,200 |
| Total assets | US$ in thousands | 2,871,900 | 3,413,700 | 4,296,800 | 4,800,000 | 3,380,500 |
| Operating ROA | 7.27% | -5.11% | -10.10% | 15.06% | 17.31% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $208,800K ÷ $2,871,900K
= 7.27%
The operating return on assets (operating ROA) for Scotts Miracle-Gro Company has fluctuated over the past five years. The company's performance in generating operating income relative to its total assets has varied significantly.
In 2024, the operating ROA stood at 7.27%, indicating that for every dollar of assets, the company generated approximately 7.27 cents in operating income. This implies a relatively moderate performance compared to the previous year.
In 2023, the operating ROA was notably negative at -5.11%, suggesting that the company incurred operating losses relative to its asset base. This negative performance could have resulted from various operational challenges or inefficiencies during the year.
Likewise, in 2022, the operating ROA worsened further to -10.10%, reflecting a significant decline in operating profitability relative to the previous year. This could indicate operational struggles or inefficiencies impacting the company's ability to generate income from its assets.
Conversely, in 2021 and 2020, the company experienced positive operating ROA figures of 15.06% and 17.31%, respectively. These years showed relatively strong operational performance, with the company efficiently utilizing its assets to generate operating income.
Overall, the fluctuating trend in Scotts Miracle-Gro Company's operating ROA indicates varying levels of operational efficiency and profitability over the past five years. The company should focus on improving its operational performance to consistently generate positive returns on its asset base in the future.
Peer comparison
Sep 30, 2024