Scotts Miracle-Gro Company (SMG)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | -267,300 | 147,700 | 1,013,300 | 697,200 | 718,700 |
| Debt-to-capital ratio | 1.12 | 0.95 | 0.69 | 0.68 | 0.68 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,557,400K ÷ ($2,557,400K + $-267,300K)
= 1.12
The debt-to-capital ratio of Scotts Miracle-Gro Company has exhibited an upward trend over the past five years, reflecting an increase in the company's reliance on debt to finance its operations compared to its capital. In 2023, the ratio stands at 1.11, indicating that the company's total debt comprises approximately 111% of its total capital. This represents a notable increase from the previous year's ratio of 0.95. The rise in the ratio suggests that the company may have taken on additional debt relative to its total capital, potentially signaling increased financial leverage and risk. It would be prudent for stakeholders to closely monitor the company's ability to service its debt obligations and assess the impact of this elevated debt level on the overall financial stability and flexibility of the organization.
Peer comparison
Sep 30, 2023