Scotts Miracle-Gro Company (SMG)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 18.88% | 19.22% | 18.16% | 18.58% | 22.69% | 22.94% | 26.40% | 29.60% | 30.07% | 30.38% | 31.05% | 32.44% | 33.30% | 33.11% | 33.20% | 33.37% | 33.00% | 33.14% | 33.32% | 32.68% |
| 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% |
| Pretax margin | -14.32% | -13.25% | -4.63% | -21.85% | -15.68% | -14.67% | -8.60% | 11.75% | 12.38% | 13.90% | 14.74% | 14.39% | 14.34% | 12.56% | 11.69% | 12.74% | 19.47% | 19.68% | 16.56% | 12.73% |
| Net profit margin | -11.98% | -11.11% | -3.71% | -17.07% | -12.07% | -11.50% | -6.55% | 9.02% | 9.43% | 10.60% | 11.24% | 11.03% | 10.85% | 9.52% | 8.86% | 9.70% | 14.89% | 14.98% | 12.34% | 8.90% |
Over the past five years, Scotts Miracle-Gro Company has shown a declining trend in profitability ratios. The gross profit margin has decreased from its peak of 33.30% in March 2020 to 18.88% in December 2023, reflecting a significant erosion in the company's ability to generate profits from its core business operations.
The operating profit margin has also exhibited a downward trajectory, with negative margins recorded in recent quarters, indicating that the company is experiencing challenges in controlling its operating expenses and overhead costs.
The pretax margin and net profit margin have followed a similar pattern, dropping consistently over the years. The negative pretax and net profit margins in the most recent quarters suggest that Scotts Miracle-Gro Company is struggling to generate profits before and after accounting for taxes, respectively.
Overall, the declining profitability ratios raise concerns about the company's operational efficiency and financial performance. Management may need to assess and address the factors contributing to these deteriorating margins to enhance long-term profitability and sustainability.
Return on investment
| 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 return on assets (Operating ROA) | -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% | 13.52% | 9.12% | 6.16% |
| Return on assets (ROA) | -10.65% | -11.13% | -2.95% | -12.41% | -9.97% | -10.18% | -5.31% | 6.52% | 8.36% | 10.68% | 12.21% | 10.97% | 12.08% | 11.46% | 8.40% | 7.85% | 13.57% | 15.21% | 10.72% | 6.39% |
| Return on total capital | -6.96% | -7.62% | 0.18% | -18.86% | -13.57% | -14.79% | -6.83% | 14.40% | 16.91% | 23.11% | 25.01% | 23.84% | 26.93% | 27.45% | 20.47% | 17.80% | 27.36% | 31.54% | 25.45% | 17.37% |
| Return on equity (ROE) | — | — | -97.63% | -450.33% | -759.83% | -296.14% | -63.45% | 41.49% | 52.67% | 50.57% | 50.27% | 57.51% | 71.86% | 55.58% | 32.62% | 41.10% | 75.07% | 64.10% | 46.43% | 40.96% |
The profitability ratios of Scotts Miracle-Gro Company fluctuated over the periods analyzed.
- Operating return on assets (Operating ROA) showed inconsistency, ranging from negative to positive values. There was a significant improvement from negative figures in the earlier periods to positive numbers in the later periods, indicating a better operational efficiency in generating profits from assets.
- Return on assets (ROA) also demonstrated variability, with negative figures in some periods. The company's ability to generate profits relative to its total assets fluctuated, showing signs of improvement in the later periods after facing challenges in the earlier periods.
- Return on total capital fluctuated, with negative values in some periods, possibly indicating challenges in efficiently utilizing total capital to generate returns. However, there was an upward trend in profitability from the earlier periods to the later periods, suggesting a better utilization of capital resources.
- Return on equity (ROE) showed significant fluctuations, including extremely negative values in certain periods. This indicates that shareholders' equity was not effectively generating returns in those periods. However, there were improvements in profitability in the later periods, reflecting a better utilization of shareholder equity.
Overall, the profitability ratios of Scotts Miracle-Gro Company reflect a mix of challenges and improvements in operational efficiency and capital utilization over the periods analyzed. Continued monitoring and strategic adjustments may be necessary to ensure sustained profitability and value creation for shareholders.