Central Garden & Pet Company (CENT)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,256,720 | 2,363,240 | 2,346,280 | 2,332,780 | 1,898,950 |
| Payables | US$ in thousands | 212,606 | 190,902 | 215,681 | 245,542 | 205,234 |
| Payables turnover | 10.61 | 12.38 | 10.88 | 9.50 | 9.25 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,256,720K ÷ $212,606K
= 10.61
The payables turnover ratio for Central Garden & Pet Company has varied over the last five years. In 2024, the company's payables turnover was 10.61, which indicates that the company was able to convert its accounts payable into cash approximately 10.61 times during the year. This represents a decrease from the previous year (12.38 in 2023).
The decreasing trend from 2023 to 2024 suggests that the company took longer to pay off its accounts payable in 2024 compared to the previous year, which could imply a potential liquidity concern or changes in the company's payment terms with suppliers.
However, the payables turnover ratio for 2024 (10.61) is still higher than that of 2022 (10.88) and 2021 (9.50), indicating that in 2024, Central Garden & Pet Company was more efficient in managing its accounts payable compared to those years.
Overall, while the decreasing trend from 2023 to 2024 warrants further investigation into the company's working capital management, the payables turnover ratio over the past five years suggests that Central Garden & Pet Company has been relatively effective in managing its accounts payable during this period.
Peer comparison
Sep 30, 2024