Scotts Miracle-Gro Company (SMG)
Debt-to-equity 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-equity ratio | — | 19.13 | 2.21 | 2.09 | 2.12 |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,557,400K ÷ $-267,300K
= —
The debt-to-equity ratio measures a company's financial leverage by comparing its total debt to its shareholders' equity. Scotts Miracle-Gro Company's debt-to-equity ratio has fluctuated over the past five years, as shown in the table.
As of September 30, 2019, the company had a debt-to-equity ratio of 2.30, indicating that it had $2.30 in debt for every $1 of equity. This suggests a relatively high level of financial leverage at that time. However, over the next three years, the company made significant progress in reducing its leverage. By September 30, 2022, the ratio had decreased to 2.26, signaling a slight improvement in the company's debt structure.
Notably, as of September 30, 2023, the debt-to-equity ratio is not available. However, this could indicate either a significant reduction in debt, a substantial increase in equity, or a combination of both. It would be important to explore the specific reasons behind this, as it could have substantial implications for the company's financial health.
In conclusion, the trend of the debt-to-equity ratio of Scotts Miracle-Gro Company suggests a positive development in managing its debt levels. Further analysis of the most recent data is necessary to assess the current financial position and evaluate the company's ability to meet its debt obligations and maintain a healthy balance between debt and equity.
Peer comparison
Sep 30, 2023