Scotts Miracle-Gro Company (SMG)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 208,800 | 8,800 | -114,000 | -179,900 | -174,400 | 5,100 | -617,900 | -440,800 | -439,900 | -244,000 | 622,600 | 661,700 | 751,000 | 813,900 | 777,900 | 714,400 | 590,800 | 514,700 | 516,800 | 709,800 |
| Interest expense (ttm) | US$ in thousands | 158,900 | 165,700 | 174,000 | 178,200 | 178,100 | 173,100 | 157,000 | 137,000 | 118,100 | 104,700 | 95,600 | 86,600 | 78,900 | 73,900 | 72,300 | 75,700 | 79,600 | 84,800 | 90,400 | 96,600 |
| Interest coverage | 1.31 | 0.05 | -0.66 | -1.01 | -0.98 | 0.03 | -3.94 | -3.22 | -3.72 | -2.33 | 6.51 | 7.64 | 9.52 | 11.01 | 10.76 | 9.44 | 7.42 | 6.07 | 5.72 | 7.35 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $208,800K ÷ $158,900K
= 1.31
The interest coverage ratio for Scotts Miracle-Gro Company has shown significant fluctuations over the past few quarters. In the most recent quarter ending September 30, 2024, the interest coverage ratio was 1.31, indicating that the company generated just enough operating income to cover its interest expenses.
However, the previous two quarters, June 30, 2024, and March 31, 2024, reported very low interest coverage ratios of 0.05 and -0.66 respectively. This suggests that the company struggled to cover its interest obligations with its operating income during these periods.
Looking further back, the financial performance of the company deteriorated significantly in the year 2023, with negative interest coverage ratios recorded in December 31, 2023, and September 30, 2023. This signified that the company was unable to cover its interest expenses with its operating earnings during these quarters.
On a positive note, the company demonstrated strong interest coverage in the year 2022, with ratios exceeding 5 in some quarters, indicating that the company had ample operating income to cover its interest payments comfortably during these periods.
Overall, the trend in Scotts Miracle-Gro's interest coverage ratio reflects varying levels of financial health and stability over the analyzed periods, with recent quarters showing a need for improvement in generating sufficient operating income to cover interest expenses.
Peer comparison
Sep 30, 2024