Central Garden & Pet Company (CENT)

Activity ratios

Short-term

Turnover ratios

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 3.31 3.75 3.57 3.20 3.03 3.32 3.55 3.55 3.71 4.47 4.47 3.64 3.67 4.32 4.25 3.34 3.05 3.60 3.53 3.11
Receivables turnover 8.94 9.94 6.63 5.77 10.04 8.86 6.69 5.50 9.87 8.57 6.44 4.71 8.59 6.88 5.09 5.28 8.96 7.94 5.93 5.03
Payables turnover 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 11.25 11.93 10.22
Working capital turnover 2.72 2.65 2.62 2.77 3.03 3.07 3.03 3.23 3.33 3.24 2.72 3.44 2.51 2.48 2.37 2.43 2.46 2.32 2.19 2.18

Central Garden & Pet Company's activity ratios provide insight into how efficiently the company is managing its assets and operations.

1. Inventory Turnover: This ratio measures how many times inventory is sold and replaced within a specific period. Central Garden & Pet Company's inventory turnover has been fairly consistent over the past years, ranging between 3.03 and 4.47. A higher inventory turnover indicates efficient management of inventory levels.

2. Receivables Turnover: This ratio shows how quickly the company collects its accounts receivable. Central Garden & Pet Company's receivables turnover fluctuated over the period, ranging from 4.71 to 10.04. A higher receivables turnover implies effective credit management and timely collection of receivables.

3. Payables Turnover: This ratio reflects how quickly the company pays its suppliers. Central Garden & Pet Company's payables turnover varied between 8.77 and 16.45. A higher payables turnover suggests that the company is efficiently managing its payables and possibly taking advantage of trade credit terms.

4. Working Capital Turnover: This ratio measures how efficiently working capital is utilized to generate sales. Central Garden & Pet Company's working capital turnover ranged from 2.18 to 3.44. A higher working capital turnover indicates effective management of working capital to support revenue generation.

Overall, Central Garden & Pet Company's activity ratios suggest a relatively efficient management of its assets and operations, as evidenced by stable or improving turnover ratios over the years.

Average number of days

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 110.30 97.45 102.13 114.24 120.38 109.95 102.91 102.82 98.35 81.58 81.70 100.37 99.32 84.50 85.83 109.30 119.57 101.35 103.34 117.20
Days of sales outstanding (DSO) days 40.83 36.71 55.06 63.25 36.35 41.19 54.60 66.42 37.00 42.57 56.65 77.56 42.48 53.05 71.75 69.15 40.73 45.97 61.58 72.51
Number of days of payables days 24.68 22.19 23.41 26.62 22.82 25.28 28.11 34.41 28.50 29.23 30.91 41.61 37.49 39.45 36.02 39.49 39.68 32.45 30.60 35.71

Days of inventory on hand (DOH) for Central Garden & Pet Company has been fluctuating over the past few quarters, ranging from a low of 81.58 days to a high of 120.38 days. This indicates that the company is managing its inventory levels differently each quarter, which could be due to various factors such as seasonality or changes in demand.

Days of sales outstanding (DSO) shows how efficiently the company is collecting its accounts receivable. The DSO has also varied significantly over the quarters, from a low of 36.35 days to a high of 77.56 days. A lower DSO is generally preferable as it indicates faster collection of receivables, potentially improving cash flow.

The number of days of payables indicates how long Central Garden & Pet takes to pay its suppliers. The trend in this ratio has been relatively stable compared to the other activity ratios, ranging from 22.19 days to 41.61 days. A longer number of days of payables means the company is taking longer to pay its suppliers, which can sometimes be a strategy to manage cash flow.

In summary, Central Garden & Pet Company's activity ratios suggest fluctuations in inventory management, accounts receivable collection, and payment terms with suppliers. It may be beneficial for the company to analyze these ratios further to identify areas for improvement in its working capital efficiency.

Long-term

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 8.52 8.45 8.33 8.24 8.33 8.41 8.66 8.85 9.97 10.06 10.41 10.13 11.00 11.02 10.70 10.06 9.94 9.71 9.81 10.55
Total asset turnover 0.97 0.98 0.96 0.97 1.02 1.02 1.01 1.02 1.09 1.06 1.02 1.05 1.13 1.15 1.13 1.12 1.13 1.18 1.14 1.12

Central Garden & Pet Company's long-term activity ratios show its efficiency in managing its assets to generate sales. The fixed asset turnover ratio has been relatively stable over the periods, indicating that the company generates sales effectively using its fixed assets. The ratio has ranged from 8.24 to 11.02, with an average of approximately 9.86 during the period under review.

On the other hand, the total asset turnover ratio demonstrates the company's overall efficiency in generating sales from all its assets. The ratio has fluctuated between 0.96 and 1.18, with an average of around 1.07. While the total asset turnover ratio has shown some variability, it indicates that Central Garden & Pet Company is generally utilizing its assets efficiently to generate revenue.

Overall, both ratios suggest that the company is effectively utilizing its assets to drive sales, with the fixed asset turnover indicating specific efficiency in using fixed assets and the total asset turnover reflecting the company's overall asset utilization for revenue generation.