What is The Scotts Miracle Gro Co Financial Strength?
The Scotts Miracle Gro Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
The Scotts Miracle Gro Co displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
The Scotts Miracle Gro Co did not have earnings to cover the interest expense.
The Scotts Miracle Gro Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.84.
As of today, The Scotts Miracle Gro Co's Altman Z-Score is 1.66.
Competitive Comparison of The Scotts Miracle Gro Co's Financial Strength
For the Agricultural Inputs subindustry, The Scotts Miracle Gro Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Scotts Miracle Gro Co's Financial Strength Distribution in the Agriculture Industry
For the Agriculture industry and Basic Materials sector, The Scotts Miracle Gro Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where The Scotts Miracle Gro Co's Financial Strength falls into.
The Scotts Miracle Gro Co Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
The Scotts Miracle Gro Co did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. The Scotts Miracle Gro Cos earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
The Scotts Miracle Gro Co has a Z-score of 1.66, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.66 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Scotts Miracle Gro Co (NYSE:SMG) Financial Strength Explanation
The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
The Scotts Miracle Gro Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
The Scotts Miracle Gro Co Financial Strength Related Terms
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The Scotts Miracle Gro Co (The Scotts Miracle Gro Co) Business Description
Scotts Miracle-Gro is the largest provider of gardening and lawncare products in the United States. The majority of the company's sales are to large retailers that include Home Depot, Lowe's, and Walmart. Scotts Miracle-Gro can sell its products at a higher price point than its competition because of a well-recognized portfolio of brands that include Miracle-Gro, Roundup, Ortho, Tomcat, and Scotts. Scotts is also the leading supplier of cannabis-growing equipment in North America through its Hawthorne business.
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