Scotts Miracle-Gro Company (SMG)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 1.22 | 1.06 | 1.10 | 1.15 | 1.12 | 0.95 | 0.96 | 0.98 | 0.95 | 0.88 | 0.77 | 0.79 | 0.69 | 0.66 | 0.71 | 0.75 | 0.68 | 0.60 | 0.73 | 0.76 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,174,200K ÷ ($2,174,200K + $-390,600K)
= 1.22
The debt-to-capital ratio of Scotts Miracle-Gro Company has exhibited some fluctuations over the past several quarters. The ratio, which represents the proportion of the company's total debt to its total capital (debt + equity), has generally been within a range of 0.60 to 1.22 over the past few years.
In the most recent quarter, as of September 30, 2024, the debt-to-capital ratio stood at 1.22, indicating that the company's debt represented 122% of its total capital. This suggests a relatively higher reliance on debt financing compared to equity.
Looking back over the previous quarters, the ratio has shown a mix of increases and decreases, with values ranging from 0.60 to 1.22. This variability may reflect changes in the company's capital structure, debt levels, or business strategies during these periods.
It is essential for stakeholders to monitor the trend of the debt-to-capital ratio over time to assess the company's financial risk and leverage levels. A higher ratio indicates a greater proportion of debt in the capital structure, which may imply higher financial risk and interest rate sensitivity. Conversely, a lower ratio suggests a stronger equity position and potentially lower financial risk.
Peer comparison
Sep 30, 2024