Scotts Miracle-Gro Company (SMG)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | -390,600 | -267,300 | 147,700 | 1,013,300 | 697,200 |
| ROE | — | — | -296.21% | 50.58% | 55.57% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-34,900K ÷ $-390,600K
= —
The return on equity (ROE) for Scotts Miracle-Gro Company has exhibited significant fluctuations over the past five years. In 2020, the ROE stood at 55.57%, indicating that for every dollar of shareholders' equity, the company generated a return of 55.57%. This suggests efficient utilization of shareholder funds to generate profits.
However, in 2021, there was a notable decline in ROE to 50.58%, although it still remained positive, indicating a slight decrease in profitability relative to the previous year.
In 2022, the ROE turned sharply negative at -296.21%, signaling a significant decline in profitability and efficiency in generating returns for shareholders. This negative ROE could arise from a combination of factors such as a loss in net income or a substantial increase in shareholder equity.
Unfortunately, the ROE data for 2023 and 2024 is missing, making it challenging to provide a more current analysis. The negative ROE in 2022 suggests a need for further investigation into the company's financial performance and strategic decisions during that period.
Peer comparison
Sep 30, 2024