Scotts Miracle-Gro Company (SMG)
Pretax margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -453,300 | -558,100 | 672,300 | 511,100 | 605,600 |
| Revenue | US$ in thousands | 3,371,900 | 3,804,700 | 4,835,700 | 4,051,100 | 3,315,200 |
| Pretax margin | -13.44% | -14.67% | 13.90% | 12.62% | 18.27% |
September 30, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-453,300K ÷ $3,371,900K
= -13.44%
The pretax margin of Scotts Miracle-Gro Company has exhibited a fluctuating trend over the past five years. In 2019, the pretax margin stood at a relatively high 18.43%, signifying strong profitability before considering taxes. However, this margin experienced a decline in the following year, dropping to 12.36% in 2020. Subsequently, the pretax margin rebounded in 2021, reaching 13.75%. However, the company's performance deteriorated significantly in 2022, with the pretax margin falling to -14.22%, indicating a loss before taxes. This trend persisted in 2023, with the pretax margin further declining to -12.76%.
The negative pretax margins in the last two years suggest a significant impact of expenses, such as operating costs or interest payments, on the company's profitability. It is essential for Scotts Miracle-Gro Company to address the factors contributing to the negative pretax margins in order to improve its financial performance and enhance shareholder value.
Peer comparison
Sep 30, 2023