Scotts Miracle-Gro Company (SMG)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 135,200 | -275,200 | -440,000 | 751,200 | 590,700 |
| Long-term debt | US$ in thousands | 2,174,200 | 2,557,400 | 2,826,200 | 2,236,700 | 1,455,100 |
| Total stockholders’ equity | US$ in thousands | -390,600 | -267,300 | 147,700 | 1,013,300 | 697,200 |
| Return on total capital | 7.58% | -12.02% | -14.80% | 23.11% | 27.45% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $135,200K ÷ ($2,174,200K + $-390,600K)
= 7.58%
The return on total capital for Scotts Miracle-Gro Company has fluctuated over the past five years.
In September 2020, the return on total capital was relatively high at 27.45%, indicating that the company effectively utilized its total capital to generate profits. However, in the following years, the return on total capital decreased significantly.
By September 2021, the return on total capital dropped to 23.11%, showing a slight decline in the company's efficiency in generating profits from its total capital. This decrease continued in September 2022 and September 2023, with negative values of -14.80% and -12.02%, respectively. These negative values indicate that the company's total capital may not have been effectively employed to generate profits during these years.
In September 2024, there was a slight improvement in the return on total capital to 7.58%, but it still remains below the levels seen in 2020 and 2021.
Overall, the fluctuating trend in Scotts Miracle-Gro Company's return on total capital suggests varying levels of efficiency in utilizing its total capital to generate profits over the analyzed period.
Peer comparison
Sep 30, 2024