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SMG (The Scotts Miracle Gro Co) Interest Coverage : 5.14 (As of Jun. 2024)


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What is The Scotts Miracle Gro Co Interest Coverage?

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 Jun. 2024 was $199 Mil. The Scotts Miracle Gro Co's Interest Expense for the three months ended in Jun. 2024 was $-39 Mil. The Scotts Miracle Gro Co's interest coverage for the quarter that ended in Jun. 2024 was 5.14. The higher the ratio, the stronger the company's financial strength is.

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: 0.6   Med: 5.89   Max: 9.22
Current: 1.52


SMG's Interest Coverage is ranked worse than
87.57% of 177 companies
in the Agriculture industry
Industry Median: 6.61 vs SMG: 1.52

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 Interest Coverage Chart

The Scotts Miracle Gro Co Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.11 7.36 9.22 2.19 0.60

The Scotts Miracle Gro Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.68 - - 6.22 5.14

Competitive Comparison of The Scotts Miracle Gro Co's Interest Coverage

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's Interest Coverage Distribution in the Agriculture Industry

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 Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, The Scotts Miracle Gro Co's Interest Expense was $-39 Mil. Its Operating Income was $199 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,436 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*199.3/-38.8
=5.14

* 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 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

Thank you for viewing the detailed overview of The Scotts Miracle Gro Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


The Scotts Miracle Gro Co Business Description

Traded in Other Exchanges
Address
14111 Scottslawn Road, Marysville, OH, USA, 43041
Scotts Miracle-Gro is the largest purveyor of home lawn and gardening products in the us. The business consists of three reporting segments: us consumer, Hawthorne, and other. The us consumer segment consists of a broad range of lawncare products, including grass seed, fertilizer, and lawn-related weed, animal, and disease control. us consumer typically generates the vast majority of companywide revenue and profits. Hawthorne sells indoor gardening and hydroponic equipment, particularly to the cannabis growing industry, while the other segment primarily consists of lawn and gardening products sold in Canada. Its lawncare and gardening products are well-recognized brands in the us, including Scotts, Miracle-Gro, Roundup, Ortho, and Tomcat.
Executives
Nathan Eric Baxter 10 percent owner C/O HAGEDORN PARTNERSHIP, L.P., 800 PORT WASHINGTON BOULEVARD, PORT WASHINGTON NY 11050
Hagedorn Partnerships L P 10 percent owner SCOTTS MIRACLE-GRO PRODUCTS INC, 800 PORT WASHINGTON BLVD, PORT WASHINGTON NY 11050
Stephen L Johnson director 14111 SCOTTSLAWN ROAD, MARYSVILLE OH 43041
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
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
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