Scotts Miracle-Gro Company (SMG)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,557,400 | 2,826,200 | 2,236,700 | 1,455,100 | 1,523,500 |
| Total assets | US$ in thousands | 3,413,700 | 4,296,800 | 4,800,000 | 3,380,500 | 3,028,700 |
| Debt-to-assets ratio | 0.75 | 0.66 | 0.47 | 0.43 | 0.50 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,557,400K ÷ $3,413,700K
= 0.75
The debt-to-assets ratio of Scotts Miracle-Gro Company has shown an increasing trend from 2019 to 2023, indicating a higher reliance on debt financing to support its assets. In 2023, the ratio stands at 0.76, suggesting that 76% of the company's assets are financed by debt. This represents a significant increase from the ratio of 0.48 in 2021 and 0.45 in 2020. The rising trend in the debt-to-assets ratio may raise concerns about the company's long-term solvency and financial risk. It is important for stakeholders to closely monitor the company's ability to manage and repay its increasing debt levels to ensure sustainable financial stability.
Peer comparison
Sep 30, 2023