Scotts Miracle-Gro Company (SMG)
Return on equity (ROE)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -34,900 | -259,300 | -347,700 | -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 |
| Total stockholders’ equity | US$ in thousands | -390,600 | -146,200 | -250,900 | -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 |
| 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% |
September 30, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-34,900K ÷ $-390,600K
= —
The return on equity (ROE) for Scotts Miracle-Gro Company has shown significant fluctuations over the past few years. ROE is a measure of a company’s profitability by indicating how much profit a company generates with the money shareholders have invested.
The ROE for Scotts Miracle-Gro in recent quarters has been negative, indicating that the company has not been generating profits that are sufficient to cover the investors' equity. The negative ROE values in some quarters, such as -759.83% and -450.33%, suggest that the company's net income was insufficient to cover the shareholders' equity, leading to a loss relative to the equity base.
The positive ROE values in other quarters, reaching as high as 75.07%, indicate that the company was able to generate profits in excess of the shareholders' equity. These positive values show that, in those periods, the company was efficient in utilizing shareholder funds to generate profits.
Overall, the fluctuating ROE values for Scotts Miracle-Gro Company reflect inconsistencies in the company’s profitability and efficiency in utilizing shareholders' equity. It suggests that the company has experienced challenges in generating consistent profits relative to the level of equity investment by shareholders. This analysis highlights the need for the company to focus on improving its profitability and operational efficiency to enhance ROE and create sustainable long-term value for its shareholders.
Peer comparison
Sep 30, 2024