Scotts Miracle-Gro Company (SMG)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 208,800 | 8,800 | -114,000 | -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 |
| Total assets | US$ in thousands | 2,871,900 | 3,489,300 | 3,924,200 | 3,716,100 | 3,413,700 | 4,454,400 | 4,988,100 | 4,534,000 | 4,296,800 | 4,993,700 | 6,207,500 | 5,242,200 | 4,800,000 | 4,621,100 | 4,934,100 | 4,000,700 | 3,380,500 | 3,876,800 | 4,135,700 | 3,456,000 |
| Operating ROA | 7.27% | 0.25% | -2.91% | -4.84% | -5.11% | 0.40% | -12.47% | -9.71% | -10.10% | -4.95% | 9.95% | 12.47% | 15.06% | 16.66% | 15.24% | 17.04% | 17.31% | 13.46% | 11.98% | 12.50% |
September 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $208,800K ÷ $2,871,900K
= 7.27%
The operating return on assets (ROA) for Scotts Miracle-Gro Company has shown fluctuations over the past several quarters.
The operating ROA was negative in the first quarter of 2024, indicating that the company's operating profit generated from its assets was insufficient to cover its asset base. This improved in the subsequent quarters, with positive values in the second and third quarters of 2024, suggesting better operational efficiency and profitability.
Comparing the most recent operating ROA of 7.27% with the historical trend, we observe a significant improvement from the negative figures reported earlier. This suggests that the company's operating income has increased in relation to its assets, indicating better utilization of resources to generate profits.
It is worth noting that the operating ROA has shown considerable variability over the past two years, with both positive and negative values. This volatility may indicate fluctuations in the company's operational performance and efficiency in utilizing its assets effectively to generate earnings.
Overall, the recent improvement in operating ROA is a positive sign for Scotts Miracle-Gro Company, reflecting a better ability to generate profits from its asset base. However, continued monitoring of the trend in operating ROA will be important to assess the company's ongoing operational efficiency and profitability.
Peer comparison
Sep 30, 2024