Central Garden & Pet Company (CENT)
Payables turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,069,673 | 3,089,304 | 3,114,031 | 3,138,351 | 3,139,487 | 3,093,103 | 3,089,263 | 3,105,825 | 3,113,752 | 3,130,030 | 3,152,565 | 3,135,682 | 3,065,688 | 2,799,520 | 2,447,109 | 2,112,579 | 1,898,951 | 1,811,317 | 1,727,185 | 1,698,723 |
| Payables | US$ in thousands | 212,606 | 191,041 | 237,310 | 212,193 | 190,902 | 198,406 | 225,311 | 194,159 | 215,681 | 241,093 | 297,194 | 244,826 | 245,542 | 237,050 | 278,969 | 216,991 | 205,234 | 178,728 | 186,871 | 184,659 |
| Payables turnover | 14.44 | 16.17 | 13.12 | 14.79 | 16.45 | 15.59 | 13.71 | 16.00 | 14.44 | 12.98 | 10.61 | 12.81 | 12.49 | 11.81 | 8.77 | 9.74 | 9.25 | 10.13 | 9.24 | 9.20 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,069,673K ÷ $212,606K
= 14.44
The payables turnover ratio for Central Garden & Pet Company has shown fluctuations over the past several quarters. The ratio measures how efficiently the company is managing its trade credit from suppliers. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly, which may indicate strong liquidity or favorable credit terms.
For the most recent quarter, the payables turnover ratio was 14.44, indicating that the company is paying its suppliers approximately 14.44 times per year. This figure has decreased from the previous quarter's ratio of 16.17, suggesting a slight decrease in the frequency of payments to suppliers.
Looking at the trend over the past few quarters, there have been fluctuations in the payables turnover ratio, with some quarters showing higher ratios (e.g., 16.45 in Q3 2023) and some showing lower ratios (e.g., 9.74 in Q3 2020). This variability may reflect changes in the company's payment policies, negotiation of new credit terms with suppliers, or shifts in the company's working capital management.
Overall, while the payables turnover ratio for Central Garden & Pet Company has fluctuated, it has generally remained at a level indicating efficient management of trade credit from suppliers. Further analysis would be needed to understand the specific factors driving the changes in the payables turnover ratio over time.
Peer comparison
Sep 30, 2024