Scotts Miracle-Gro Company (SMG)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,871,900 | 3,489,300 | 3,924,200 | 3,716,100 | 3,413,700 | 4,454,400 | 4,988,100 | 4,534,000 | 4,296,800 | 4,993,700 | 6,207,500 | 5,242,200 | 4,800,000 | 4,621,100 | 4,934,100 | 4,000,700 | 3,380,500 | 3,876,800 | 4,135,700 | 3,456,000 |
| 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 |
| Financial leverage ratio | — | — | — | — | — | 33.04 | 36.28 | 76.20 | 29.09 | 11.94 | 6.37 | 6.30 | 4.74 | 4.12 | 5.24 | 5.95 | 4.85 | 3.88 | 5.24 | 5.53 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,871,900K ÷ $-390,600K
= —
The financial leverage ratio of Scotts Miracle-Gro Company has exhibited fluctuations over the periods specified in the table. The financial leverage ratio represents the extent to which the company relies on debt financing rather than equity to fund its operations and growth.
Looking at the trend, we observed a significant increase in the financial leverage ratio from March 2022 to December 2022, reaching 76.20, indicating a substantial shift towards higher debt usage during that period. However, this trend reversed in subsequent quarters, with the ratio decreasing to 29.09 by September 2023, suggesting a reduction in debt reliance.
From September 2023 onwards, the financial leverage ratio generally stayed within a range between 11.94 and 36.28, reflecting a more balanced mix of debt and equity financing in the company's capital structure. The ratio remained relatively stable during these periods.
Overall, the company's financial leverage ratio demonstrates variability in its debt utilization over time, with fluctuations possibly influenced by strategic decisions regarding capital structure, financing needs, and market conditions.
Peer comparison
Sep 30, 2024