Scotts Miracle-Gro Company (SMG)
Financial leverage ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,413,700 | 4,296,800 | 4,800,000 | 3,380,500 | 3,028,700 |
| Total stockholders’ equity | US$ in thousands | -267,300 | 147,700 | 1,013,300 | 697,200 | 718,700 |
| Financial leverage ratio | — | 29.09 | 4.74 | 4.85 | 4.21 |
September 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,413,700K ÷ $-267,300K
= —
The financial leverage ratio measures the extent to which a company relies on debt to finance its assets. For Scotts Miracle-Gro Company, the financial leverage ratio has shown a notable increase, from 4.21 in 2019 to 4.85 in 2020, and subsequently to 4.74 in 2021. However, the ratio was not available for 2023. This indicates a trend of increasing reliance on debt for asset financing over the past few years, which may raise concerns about the company's financial risk and ability to meet its debt obligations. It would be important to further investigate the reasons behind this trend and to assess the potential impact on the company's financial stability and solvency.
Peer comparison
Sep 30, 2023