Central Garden & Pet Company (CENT)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,316,578 | 3,309,592 | 3,267,352 | 3,259,572 | 3,305,089 | 3,338,693 | 3,382,118 | 3,405,108 | 3,390,545 | 3,304,411 | 3,185,718 | 2,995,231 | 2,773,382 | 2,695,509 | 2,560,284 | 2,433,376 | 2,403,848 | 2,383,010 | 2,344,580 | 2,295,948 |
| Receivables | US$ in thousands | 370,996 | 332,890 | 492,850 | 564,874 | 329,129 | 376,787 | 505,896 | 619,629 | 343,659 | 385,384 | 494,432 | 636,466 | 322,806 | 391,773 | 503,288 | 460,985 | 268,229 | 300,135 | 395,581 | 456,129 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,316,578K ÷ $370,996K
= 8.94
Central Garden & Pet Company's receivables turnover ratio has fluctuated over the past few quarters. The ratio indicates the number of times, on average, the company collects its accounts receivable during a specific period. A higher turnover ratio is generally favorable as it shows that the company is efficient in collecting outstanding debts.
Analyzing the trend, we observe that the receivables turnover ratio has ranged from 4.71 to 10.04 over the last few quarters. The highest turnover ratio of 10.04 was recorded in the Dec 31, 2022 quarter, indicating a strong efficiency in collecting receivables during that period. However, the ratio dropped to 5.50 in Mar 31, 2022, before recovering slightly.
Overall, the company has maintained an average receivables turnover ratio of around 7.5 to 9.5, suggesting a moderate level of efficiency in collecting accounts receivable. It is essential for Central Garden & Pet Company to continue monitoring and improving its receivables turnover ratio to ensure effective cash flow management and liquidity.
Peer comparison
Dec 31, 2023