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Scotts Miracle Gro Co (NYSE:SMG)
Debt to Equity
1.55 (As of Jun. 2015)

Scotts Miracle Gro Co's current portion of long-term debt for the quarter that ended in Jun. 2015 was $316 Mil. Scotts Miracle Gro Co's long-term debt for the quarter that ended in Jun. 2015 was $738 Mil. Scotts Miracle Gro Co's total equity for the quarter that ended in Jun. 2015 was $680 Mil. Scotts Miracle Gro Co's debt to equity for the quarter that ended in Jun. 2015 was 1.55.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.


Definition

Debt to Equity measures the financial leverage a company has.

Scotts Miracle Gro Co's Debt to Equity Ratio for the fiscal year that ended in Sep. 2014 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(91.9 + 692.4) / 553.7
=1.42

Scotts Miracle Gro Co's Debt to Equity Ratio for the quarter that ended in Jun. 2015 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(316.4 + 738.4) / 680
=1.55

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.


Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.


Related Terms

Current Portion of Long-Term Debt, Long-Term Debt, Total Equity, Return on Equity


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Scotts Miracle Gro Co Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
deb2equity 0.380.452.332.291.390.831.421.300.801.42

Scotts Miracle Gro Co Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
deb2equity 2.260.960.801.422.111.101.422.622.751.55
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