Central Garden & Pet Company (CENT)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,200,460 | 3,310,100 | 3,338,590 | 3,303,680 | 2,695,510 |
| Receivables | US$ in thousands | 326,220 | 332,890 | 376,787 | 385,384 | 391,773 |
| Receivables turnover | 9.81 | 9.94 | 8.86 | 8.57 | 6.88 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,200,460K ÷ $326,220K
= 9.81
The receivables turnover ratio for Central Garden & Pet Company has been relatively consistent and generally improving over the past five years. The ratio has ranged from 6.88 in 2020 to 9.81 in 2024.
A higher receivables turnover ratio indicates that the company is able to collect its accounts receivable more efficiently. This implies that Central Garden & Pet Company is collecting its outstanding receivables more quickly each year, on average.
Overall, the trend in the receivables turnover ratio suggests that Central Garden & Pet Company has been managing its accounts receivable effectively, translating sales into cash at a faster rate. This improvement may indicate strong credit and collection policies, efficient invoicing and payment processes, or a focus on managing working capital efficiently.
Peer comparison
Sep 30, 2024