Scotts Miracle-Gro Company (SMG)
Return on assets (ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -34,900 | -380,100 | -437,500 | 512,500 | 387,400 |
| Total assets | US$ in thousands | 2,871,900 | 3,413,700 | 4,296,800 | 4,800,000 | 3,380,500 |
| ROA | -1.22% | -11.13% | -10.18% | 10.68% | 11.46% |
September 30, 2024 calculation
ROA = Net income ÷ Total assets
= $-34,900K ÷ $2,871,900K
= -1.22%
The return on assets (ROA) for Scotts Miracle-Gro Company has fluctuated significantly over the past five years. In the most recent period ending September 30, 2024, the ROA was -1.22%, indicating that the company generated a negative return on its assets. This may suggest that the company's profitability in relation to its total assets deteriorated in this period.
Looking back, the ROA was even lower in the previous year ending September 30, 2023, at -11.13%. This sharp decrease in ROA reflects a substantial decline in the company's ability to generate earnings from its assets during that period.
In the two preceding years, ending September 30, 2022 and September 30, 2021, the ROA figures were negative as well, at -10.18% and 10.68% respectively. The negative ROA in these years indicates that the company struggled to efficiently utilize its assets to generate profits.
However, in the year ending September 30, 2020, the company experienced a significant improvement in ROA, which stood at 11.46%. This suggests that in that particular year, Scotts Miracle-Gro effectively utilized its assets to generate a return higher than the costs associated with those assets.
Overall, the trend in ROA for Scotts Miracle-Gro Company shows volatility and fluctuations in its ability to generate profits from its assets over the past five years, with a mix of negative and positive ROA figures. Further analysis of the company's financial performance and operational efficiency would be necessary to understand the underlying reasons for these fluctuations.
Peer comparison
Sep 30, 2024