The business behind the dividend
| Measure | SMG | Median | Formula |
|---|---|---|---|
| Return on equity | — | — | Net income ÷ shareholders’ equity |
| Return on capital employed | 20.5% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $110.50m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $273.90m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 10.5% | 14.3% | Operating income ÷ revenue |
| Net margin | 4.3% | 10.1% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | 2.78x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 1.27x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 10.22x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.56x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -8.2% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Debt to equity, Return on equity — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | — | — | — | -296.2% | 50.6% | 55.6% | 64.1% | 18.0% | 33.6% | 44.1% | 44.1% |
| Return on capital employed | 20.5% | 11.4% | -7.4% | -13.9% | 21.9% | 26.4% | 17.3% | 8.4% | 21.1% | 23.2% | 17.3% |
| Operating margin | 10.5% | 5.9% | -4.9% | -11.1% | 14.7% | 14.2% | 13.0% | 7.5% | 16.4% | 17.9% | 10.5% |
| Net margin | 4.3% | -1.0% | -10.7% | -11.1% | 10.4% | 9.4% | 14.6% | 2.4% | 8.3% | 12.6% | 4.3% |
| Debt to equity | — | — | — | 20.11x | 2.26x | 2.18x | 2.30x | 5.69x | 2.16x | 1.70x | 2.26x |
| Current ratio | 1.27x | 1.31x | 1.81x | 2.06x | 1.77x | 1.28x | 1.68x | 1.45x | 1.62x | 1.46x | 1.46x |
| Cash conversion | 2.56x | — | — | — | 0.53x | 1.44x | 0.49x | 5.38x | 1.66x | 0.77x | 1.44x |
How it compares in materials
Among the 79 materials companies here measured on free cash flow, Scotts Miracle-Gro pays out less than 28 of them. The median for that group is 34.3%, against this company’s 56.3%.
Closest on free cash flow
- PPG Industries (PPG) 54.0%
- Linde (LIN) 55.2%
- Steel Dynamics (STLD) 58.1%
- Eidp (CTA-PB) 58.5%
Same sector and same denominator, so the figures are comparable. All 107 in materials →