Scotts Miracle-Gro Company (SMG)

Return on assets (ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	-380,100	-437,500	512,500	387,400	460,700
Total assets	US$ in thousands	3,413,700	4,296,800	4,800,000	3,380,500	3,028,700
ROA		-11.13%	-10.18%	10.68%	11.46%	15.21%

September 30, 2023 calculation

ROA = Net income ÷ Total assets
= $-380,100K ÷ $3,413,700K
= -11.13%

Based on the provided data, Scotts Miracle-Gro Company's return on assets (ROA) has exhibited a downward trend over the past five years. The ROA decreased from 15.21% in 2019 to -11.13% in 2023, indicating a significant decline in the company's profitability relative to its total assets. The negative ROA figures in 2022 and 2023 are particularly concerning as they imply that the company's assets are not generating positive returns. This trend suggests a potential inefficiency in asset utilization or declining profitability, which may require further investigation and strategic management attention.

Peer comparison

Sep 30, 2023

Company name

Symbol

ROA

Scotts Miracle-Gro Company

SMG

-11.13%

CF Industries Holdings Inc