The Scotts Miracle Gro Co (The Scotts Miracle Gro Co) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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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 by its Interest Expense. The Scotts Miracle Gro Co's Operating Income for the three months ended in Dec. 2023 was $-54 Mil. The Scotts Miracle Gro Co's Interest Expense for the three months ended in Dec. 2023 was $-43 Mil. 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.

The historical rank and industry rank for The Scotts Miracle Gro Co's Interest Coverage or its related term are showing as below:

SMG' s Interest Coverage Range Over the Past 10 Years
Min: 0.48 Med: 5.89 Max: 9.22
Current: 0.48

SMG's Interest Coverage is ranked worse than
96.7% of 182 companies
in the Agriculture industry
Industry Median: 7.47 vs SMG: 0.48

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Scotts Miracle Gro Co Interest Coverage Historical Data

The historical data trend for The Scotts Miracle Gro Co's Interest Coverage can be seen below:

* 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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The Scotts Miracle Gro Co Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

4.11

7.36

9.22

2.19

0.60

The Scotts Miracle Gro Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																-	4.72	1.68	-	-

Competitive Comparison

For the Agricultural Inputs subindustry, The Scotts Miracle Gro Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Agriculture industry and Basic Materials sector, The Scotts Miracle Gro Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Scotts Miracle Gro Co's Interest Coverage falls into.

The Scotts Miracle Gro Co Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Scotts Miracle Gro Co's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, The Scotts Miracle Gro Co's Interest Expense was $-178 Mil. Its Operating Income was $106 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,778 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	106.1	/	-178.1
	=	0.60

The Scotts Miracle Gro Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, The Scotts Miracle Gro Co's Interest Expense was $-43 Mil. Its Operating Income was $-54 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,969 Mil.

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.

The Scotts Miracle Gro Co (NYSE:SMG) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

The Scotts Miracle Gro Co Interest Coverage Related Terms

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The Scotts Miracle Gro Co (The Scotts Miracle Gro Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » The Scotts Miracle Gro Co (NYSE:SMG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SCQA:Germany SCQA:Germany

Address

14111 Scottslawn Road, Marysville, OH, USA, 43041

Website

https://www.scottsmiraclegro.com

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.

Executives

Nancy G. Mistretta	director	14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
Kelly Thomas N Jr	director	C/O THE SCOTTS MIRACLE-GRO COMPANY, 14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
Hagedorn Partnerships L P	10 percent owner	SCOTTS MIRACLE-GRO PRODUCTS INC, 800 PORT WASHINGTON BLVD, PORT WASHINGTON NY 11050
James Hagedorn	director, 10 percent owner, officer: President and CEO	C/O SCOTTS CO, 14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
Julie Demuesy	officer: SVP, CHIEF HUMAN RESOURCES	14111 SCOTTSLAWN RD, MARYSVILLE OH 43041
Mark D Kingdon	director	14111 SCOTTSLAWN RD, MARYSVILLE OH 43041
Stephen L Johnson	director	14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
Edith Aviles	director	14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
Dimiter Todorov	officer: EVP, GC & CORPORATE SECRETARY	14111 SCOTTSLAWN RD, MARYSVILLE OH 43041
Matthew E Garth	officer: EVP & CFO	622 THIRD AVENUE, 38TH FLOOR, NEW YORK NY 10017
David C Evans	officer: EVP and CFO	C/O THE SCOTTS MIRACLE-GRO COMPANY, 14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
Peter E Shumlin	director	14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
Brian E Sandoval	director	14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
James D King	officer: EVP and CCO	14111 SCOTTSLAWN RD, MARYSVILLE OH 43041
Gerald Volas	director	C/O TREX COMPANY INC., 160 EXETER DRIVE, WINCHESTER VA 22603