Scotts Miracle-Gro Company (SMG)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 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 | 0.68 | 0.66 | 0.77 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,969,000K ÷ ($2,969,000K + $-385,400K)
= 1.15
The debt-to-capital ratio for Scotts Miracle-Gro Company has exhibited fluctuations over the past five years. The ratio stood at 0.77 as of Dec 31, 2021, indicating that debt accounted for 77% of the company's total capital. This ratio increased to 0.98 by Dec 31, 2022, suggesting a higher reliance on debt financing. However, in the latest period ending Dec 31, 2023, the ratio decreased to 1.15, indicating that debt levels have risen significantly, surpassing the company's capital base.
These fluctuations in the debt-to-capital ratio can signal changes in the company's financial structure and risk profile. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's leverage and its ability to meet its financial obligations.
Peer comparison
Dec 31, 2023