Scotts Miracle-Gro Company (SMG)

Solvency ratios

	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
Debt-to-assets ratio	0.80	0.75	0.59	0.63	0.70	0.66	0.63	0.54	0.59	0.47	0.46	0.47	0.49	0.43	0.39	0.51	0.57	0.50	0.45	0.52
Debt-to-capital ratio	1.15	1.12	0.95	0.96	0.98	0.95	0.88	0.77	0.79	0.69	0.66	0.71	0.75	0.68	0.60	0.73	0.76	0.68	0.66	0.77
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
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	4.21	4.33	6.41

The solvency ratios of Scotts Miracle-Gro Company show its ability to meet its long-term financial obligations and leverage levels over the past few years.

The debt-to-assets ratio has fluctuated, ranging from 0.39 to 0.80. This ratio indicates the proportion of the company's assets financed by debt. A higher ratio suggests a higher dependence on debt to finance assets.

The debt-to-capital ratio has also varied, ranging from 0.60 to 1.15. This ratio reflects the proportion of the company's capital structure that is debt. A higher ratio indicates a higher reliance on debt financing.

The debt-to-equity ratio, although not available for some periods, has shown a decline from 53.61 to 1.90 over the years. This ratio compares the company's total debt to equity, showing the extent of debt funding relative to shareholder equity.

The financial leverage ratio, which also indicates the extent of a company's debt financing, has ranged from 3.88 to 76.20. A higher ratio signifies a higher degree of financial risk due to increased debt levels.

Overall, the company has employed varying levels of debt to finance its operations and investments, which can impact its financial stability and risk profile over time. Further analysis and consideration of industry benchmarks would provide additional insights into Scotts Miracle-Gro Company's solvency position.

Coverage ratios

	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
Interest coverage	-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	6.95	5.85	4.61

The interest coverage ratio for Scotts Miracle-Gro Company shows considerable fluctuations over the past years, indicating varying levels of ability to cover interest expenses with operating income. The company experienced negative interest coverage in some periods, implying that its operating income was insufficient to cover interest expenses, resulting in a financial strain. However, there have been positive trends in recent quarters, with the interest coverage ratio improving significantly, exceeding 1 and even reaching double digits at times. This indicates a healthier financial position, as the company's operating income has become more robust in relation to its interest obligations. Overall, the recent upward trend in interest coverage suggests improved financial stability and a better ability to meet debt obligations through operating earnings.