Central Garden & Pet Company (CENT)
Total asset 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 |
| Total assets | US$ in thousands | 3,553,440 | 3,378,650 | 3,282,000 | 3,116,680 | 2,339,360 |
| Total asset turnover | 0.90 | 0.98 | 1.02 | 1.06 | 1.15 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,200,460K ÷ $3,553,440K
= 0.90
Total asset turnover measures the efficiency with which Central Garden & Pet Company utilizes its assets to generate sales revenue. A declining trend is observed in the total asset turnover ratio over the past five years, from 1.15 in 2020 to 0.90 in 2024. This indicates that the company is generating less revenue per dollar of assets over time. A lower total asset turnover ratio may suggest inefficiencies in asset utilization, excess inventory, or declining sales.
In 2024, the total asset turnover ratio of 0.90 implies that Central Garden & Pet Company generated $0.90 in sales for every $1 of assets on its balance sheet. This could indicate a decrease in operational efficiency or a need for better asset management. It is essential for the company to closely monitor and address the factors contributing to the decline in total asset turnover to enhance profitability and overall performance.
Peer comparison
Sep 30, 2024