Scotts Miracle-Gro Company (SMG)
Debt-to-equity 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-equity ratio | — | — | — | — | — | 19.50 | 22.82 | 53.61 | 19.13 | 7.55 | 3.44 | 3.71 | 2.21 | 1.90 | 2.47 | 2.94 | 2.09 | 1.52 | 2.68 | 3.15 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,174,200K ÷ $-390,600K
= —
The debt-to-equity ratio for Scotts Miracle-Gro Company has shown fluctuation over the past few years. The ratio was relatively stable around 2-3 during the period from 2019 to mid-2021. However, starting from late 2021, the ratio saw a significant increase, reaching its peak at 53.61 in December 2022.
This substantial spike in the debt-to-equity ratio in late 2022 indicates a significant increase in the company's debt levels relative to its equity, which could signal a higher reliance on debt to finance its operations or expansion activities during that period.
Subsequently, there was a notable decrease in the ratio in the following quarters, with it standing at 22.82 in March 2023 and further decreasing to 19.50 by September 2023. This downward trend suggests that the company may have taken steps to reduce its debt levels or strengthen its equity position during this period.
Overall, the fluctuating trend in Scotts Miracle-Gro Company's debt-to-equity ratio indicates varying levels of leverage and financial risk over the analyzed period. Investors and analysts should continue to monitor the company's debt management strategies and financial health to assess its long-term stability and growth prospects.
Peer comparison
Sep 30, 2024