Scotts Miracle-Gro Company (SMG)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -174,400 | -434,000 | 723,000 | 585,200 | 409,600 |
| Total assets | US$ in thousands | 3,413,700 | 4,296,800 | 4,800,000 | 3,380,500 | 3,028,700 |
| Operating ROA | -5.11% | -10.10% | 15.06% | 17.31% | 13.52% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-174,400K ÷ $3,413,700K
= -5.11%
To analyze Scotts Miracle-Gro Company's operating return on assets (operating ROA), we can see a downward trend from 2019 to 2023. The operating ROA decreased from 14.01% in 2019 to 8.54% in 2023. This indicates a decline in the company's ability to generate operating income from its assets over this period.
The downward trend in operating ROA suggests that the company may be facing challenges in efficiently utilizing its assets to generate operating income. Factors such as changes in the company's operating efficiency, profitability, or asset management could be contributing to this decline.
Additionally, the decreasing trend in operating ROA could raise concerns about the company's operational performance and its ability to generate profits from its assets. It may also indicate a diminishing ability to effectively utilize its resources to support the growth and sustainability of the business.
Overall, the declining operating ROA for Scotts Miracle-Gro Company over the past five years highlights the importance of closely monitoring the company's operational efficiency, profitability, and asset management strategies to address the underlying factors contributing to this trend.
Peer comparison
Sep 30, 2023