Central Garden & Pet Company (CENT)
Fixed asset turnover
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 3,310,080 | 3,338,590 | 3,303,680 | 2,695,510 | 2,383,000 |
Property, plant and equipment | US$ in thousands | 391,768 | 396,979 | 328,571 | 244,667 | 245,405 |
Fixed asset turnover | 8.45 | 8.41 | 10.05 | 11.02 | 9.71 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,310,080K ÷ $391,768K
= 8.45
The fixed asset turnover ratio measures the efficiency with which a company utilizes its fixed assets to generate sales. A higher ratio indicates better utilization of fixed assets to generate revenue.
Looking at Central Garden & Pet Co.'s fixed asset turnover ratio over the past five years, we observe a fluctuating trend. In 2023, the company achieved a fixed asset turnover of 8.45, demonstrating a slight increase from the previous year's 8.41. Despite the marginal change, the ratio remains relatively consistent, indicating the company's ability to efficiently generate sales from its fixed assets.
Comparing the recent ratios to those from 2021 and 2020, we notice a notable decrease in the fixed asset turnover. In 2021, the ratio dropped to 10.05 from 11.02 in 2020, and then to 9.71 in 2019. This downward trend may suggest a less efficient utilization of fixed assets in generating sales during those years.
Overall, the trend in fixed asset turnover for Central Garden & Pet Co. indicates that the company has been consistently effective in using its fixed assets to drive sales in recent years, although there was a temporary decline in efficiency in 2021 and 2020. Further analysis of the company's operational and investment strategies may provide deeper insights into the drivers of the observed changes in fixed asset turnover.
Peer comparison
Sep 30, 2023