Scotts Miracle-Gro Company (SMG)
Debt-to-equity 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-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 | 2.12 | 1.95 | 3.30 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,969,000K ÷ $-385,400K
= —
The debt-to-equity ratio of Scotts Miracle-Gro Company has fluctuated over the past few years, indicating shifts in the company's capital structure and financial leverage. In December 2019, the ratio stood at 3.30, reflecting a higher level of debt relative to equity. Subsequently, there was a decline in the ratio, reaching a low of 1.52 in June 2020, indicating a decrease in financial leverage and a more balanced capital structure.
However, the ratio increased again to 53.61 in December 2022, suggesting a significant rise in debt relative to equity, which could potentially pose a higher financial risk. Subsequently, the ratio has shown a decreasing trend, standing at 22.82 in March 2023.
Overall, the fluctuation in the debt-to-equity ratio of Scotts Miracle-Gro Company highlights changes in the company's financial leverage and capital structure over time. It is essential for investors and stakeholders to monitor these changes to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Peer comparison
Dec 31, 2023