Scotts Miracle-Gro Company (SMG)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | -267,300 | 147,700 | 1,013,300 | 697,200 | 718,700 |
| ROE | — | -296.21% | 50.58% | 55.57% | 64.10% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-380,100K ÷ $-267,300K
= —
The return on equity (ROE) is a financial ratio that measures a company's efficiency in generating profits from shareholders' equity. A higher ROE indicates that a company is effectively using shareholders' funds to generate profits.
In 2023, Scotts Miracle-Gro Company did not report its ROE. However, in 2022, the ROE was a negative 296.21%, indicating significant loss relative to shareholders' equity. This sharp decline from the positive ROE in 2021 suggests a substantial reversal in the company's profitability and/or its utilization of equity.
In 2021, the ROE was 50.58%, signifying a solid return on equity and efficient use of shareholders' funds to generate profits. However, this is a notable decrease from the previous year's ROE of 55.57%.
In 2020, the ROE was 55.57%, showing a slight decline from the 2019 figure of 64.10%. This decrease indicates a potential reduction in the company's efficiency in generating profits from shareholders' equity.
Overall, the ROE for Scotts Miracle-Gro has shown fluctuations, with a concerning negative ROE in 2022, which could indicate deteriorating financial performance and diminished profitability relative to shareholders' equity. It's important to further investigate the reasons behind these fluctuations to determine the company's financial health and prospects for future profitability.
Peer comparison
Sep 30, 2023