Central Garden & Pet Company (CENT)
Receivables 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 |
| Receivables | US$ in thousands | 332,890 | 376,787 | 385,384 | 391,773 | 300,135 |
| Receivables turnover | 9.94 | 8.86 | 8.57 | 6.88 | 7.94 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,310,080K ÷ $332,890K
= 9.94
The receivables turnover of Central Garden & Pet Co. has shown a positive trend over the past five years, indicating an improvement in the company's ability to collect outstanding receivables. The ratio increased from 7.94 in 2019 to 9.94 in 2023, reflecting a consistent enhancement in collection efficiency.
This suggests that the company has been more effective in converting its credit sales into cash, which could be a sign of better credit management or an improvement in the quality of its accounts receivable. A higher receivables turnover ratio is generally favorable as it indicates that the company is collecting its receivables more quickly, thereby reducing the risk of bad debts and improving cash flow.
The increasing trend in receivables turnover is a positive signal for Central Garden & Pet Co., demonstrating its ability to efficiently manage its accounts receivable process and convert credit sales into cash.
Peer comparison
Sep 30, 2023