Central Garden & Pet Company (CENT)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 4.05 3.94 3.41 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
Receivables turnover 9.72 6.49 5.72 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
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
Working capital turnover 2.31 2.37 2.56 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

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

1. Inventory turnover has been relatively stable over the periods analyzed, ranging from 3.05 to 4.47 times per year. This indicates that the company is effectively managing its inventory levels and turning over its inventory frequently.

2. Receivables turnover shows variability, ranging from 4.71 to 10.04 times per year. A higher turnover indicates that the company is collecting its receivables quickly, which is generally positive for cash flow and liquidity.

3. Payables turnover has also fluctuated, ranging from 8.77 to 16.45 times per year. A higher turnover suggests that the company is efficiently managing its payables, potentially taking advantage of payment terms to improve cash flow.

4. Working capital turnover measures how efficiently the company is utilizing its working capital to generate sales. The ratio has varied from 2.37 to 3.44 times per year, indicating that the company is effectively using its working capital to support its operations and growth.

Overall, Central Garden & Pet Company demonstrates reasonable efficiency in managing its inventory, receivables, payables, and working capital to support its business activities. The fluctuations in activity ratios highlight the dynamic nature of the company's operations and the need for ongoing monitoring and optimization of its working capital management.

Average number of days

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
Days of inventory on hand (DOH) days 90.12 92.72 107.17 110.30 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
Days of sales outstanding (DSO) days 37.54 56.21 63.80 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
Number of days of payables days 25.28 22.57 27.82 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

Days of Inventory on Hand (DOH) for Central Garden & Pet Company have shown fluctuations over the past few quarters, ranging from a low of 81.58 days to a high of 120.38 days. The company seems to be managing its inventory levels to ensure it is neither excessive nor inadequate.

Days of Sales Outstanding (DSO) have also varied, with the number of days it takes to collect receivables ranging from 36.35 days to 77.56 days. A lower DSO indicates a more efficient collection process, while a higher DSO suggests potential issues with credit policies or customer payment delays.

The Number of Days of Payables reflects the time the company takes to pay its suppliers. Central Garden & Pet Company's payables period has ranged from 22.19 days to 41.61 days. A longer payables period can indicate favorable terms with suppliers, while a shorter period may indicate stronger cash flow management.

Overall, analyzing these activity ratios provides insight into how efficiently Central Garden & Pet Company is managing its inventory, collecting receivables, and paying its suppliers, all of which are crucial aspects of its operational efficiency.

Long-term

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
Fixed asset turnover 8.37 8.57 8.54 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
Total asset turnover 0.89 0.91 0.93 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

Central Garden & Pet Company's fixed asset turnover ratio has remained relatively stable over the past several quarters, fluctuating between 8.24 and 10.41. This indicates that the company generates between 8.24 to 10.41 in sales for every dollar invested in fixed assets, such as property, plant, and equipment. The relatively high fixed asset turnover ratio suggests that Central Garden & Pet is efficiently utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has shown some variability, ranging from 0.89 to 1.15. This ratio measures how efficiently the company is using all its assets to generate sales. The upward trend in the total asset turnover ratio indicates that Central Garden & Pet has been increasingly efficient in utilizing both fixed and current assets to generate revenue. A ratio above 1 suggests that the company is generating more in sales than the total value of its assets.

Overall, the trend in both the fixed asset turnover and total asset turnover ratios suggests that Central Garden & Pet Company is effectively managing its assets to generate revenue, with a particularly strong performance in leveraging fixed assets to drive sales.