Scotts Miracle-Gro Company (SMG)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 208,800 | 8,800 | -114,000 | -179,900 | -174,400 | 5,100 | -617,900 | -440,800 | -439,900 | -244,000 | 622,600 | 661,700 | 751,000 | 813,900 | 777,900 | 714,400 | 590,800 | 514,700 | 516,800 | 709,800 |
| Long-term debt | US$ in thousands | 2,174,200 | 2,436,400 | 2,760,500 | 2,969,000 | 2,557,400 | 2,628,800 | 3,138,000 | 3,189,600 | 2,826,200 | 3,155,600 | 3,350,000 | 3,082,200 | 2,236,700 | 2,132,000 | 2,322,500 | 1,979,800 | 1,455,100 | 1,516,000 | 2,113,800 | 1,969,900 |
| 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 |
| Return on total capital | 11.71% | 0.38% | -4.54% | -6.96% | -7.62% | 0.18% | -18.86% | -13.57% | -14.79% | -6.83% | 14.40% | 16.91% | 23.11% | 25.01% | 23.84% | 26.93% | 27.45% | 20.47% | 17.80% | 27.36% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $208,800K ÷ ($2,174,200K + $-390,600K)
= 11.71%
Using the return on total capital as a key measure of financial performance, we can see fluctuations in Scotts Miracle-Gro Company's efficiency in generating returns relative to its total capital employed over the past few quarters.
The return on total capital ranged from a low of -18.86% in the first quarter of 2023 to a high of 27.45% in the third quarter of 2020, indicating significant variability in the company's capital productivity during this period.
In recent quarters, the return on total capital has generally improved, with a notable increase from 11.71% in the third quarter of 2024 compared to negative figures recorded in the two preceding quarters. This suggests a potentially positive turnaround in the company's ability to generate returns on the capital invested.
It is crucial for stakeholders to monitor the return on total capital continuously as it provides insights into the company's efficiency in utilizing its capital resources to generate profits. Further analysis and understanding of the underlying factors driving these fluctuations will be essential for evaluating the company's overall financial health and performance going forward.
Peer comparison
Sep 30, 2024