Scotts Miracle-Gro Company (SMG)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -395,800 | -380,000 | -131,600 | -619,200 | -452,100 | -437,400 | -265,300 | 404,500 | 438,000 | 512,400 | 564,200 | 541,100 | 483,300 | 387,500 | 325,700 | 324,600 | 468,900 | 460,700 | 371,600 | 252,800 |
| Total stockholders’ equity | US$ in thousands | -385,400 | -267,300 | 134,800 | 137,500 | 59,500 | 147,700 | 418,100 | 975,000 | 831,600 | 1,013,300 | 1,122,400 | 940,900 | 672,600 | 697,200 | 998,500 | 789,700 | 624,600 | 718,700 | 800,400 | 617,200 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-395,800K ÷ $-385,400K
= —
The return on equity (ROE) of Scotts Miracle-Gro Company has exhibited significant fluctuations over the past few quarters.
From March 2019 to March 2020, the company's ROE ranged from 40.96% to 75.07%, indicating healthy shareholder value creation during this period. However, the ROE dropped sharply to 32.62% in June 2020, reflecting a decrease in profitability relative to shareholders' equity.
The ROE continued to fluctuate with peaks and troughs until reaching a negative ROE in June 2023 and September 2023. The negative ROE during these periods, especially the substantial -759.83% in December 2022 and -450.33% in March 2023, suggests that the company's profitability was insufficient to cover the shareholders' equity, resulting in a loss.
Subsequently, there was an improvement in the ROE, turning positive again in March 2024 at 41.49%. This positive trend continued with an ROE of 52.67% in June 2024 and 50.57% in September 2024, indicating a recovery in profitability and efficiency in utilizing shareholders' equity.
Overall, Scotts Miracle-Gro Company has experienced a volatile ROE performance, with periods of strong profitability followed by significant declines leading to negative returns, but the recent positive trend suggests that the company may be focusing on improving its financial performance and creating value for its shareholders. Further monitoring of the ROE will be essential to assess the company's long-term financial health and sustainability.
Peer comparison
Dec 31, 2023