Scotts Miracle-Gro Company (SMG)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -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 | 707,300 | 601,700 | 461,500 |
| Long-term debt | US$ in thousands | 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 | 1,523,500 | 1,563,500 | 2,039,100 |
| 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 |
| Return on total capital | -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% | 31.54% | 25.45% | 17.37% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-179,900K ÷ ($2,969,000K + $-385,400K)
= -6.96%
The return on total capital for Scotts Miracle-Gro Company has shown fluctuations over the periods analyzed. The company experienced negative returns in recent quarters, with the latest return being -6.96% as of December 31, 2023, and a low of -18.86% as of March 31, 2023. These negative returns indicate that the company may not be effectively generating profits from its invested capital during these periods.
However, the return on total capital has also shown positive figures in certain quarters, with the highest return recorded at 31.54% as of March 31, 2019. These positive returns suggest that the company was able to efficiently utilize its capital to generate profits during those particular periods.
It is important to note that fluctuations in return on total capital can be influenced by various factors such as operational efficiency, profitability, and capital structure. An in-depth analysis of the financial performance and operational strategies of Scotts Miracle-Gro Company would be necessary to understand the reasons behind the fluctuations in its return on total capital over the analyzed periods.
Peer comparison
Dec 31, 2023