Central Garden & Pet Company (CENT)
Total asset 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 |
| Total assets | US$ in thousands | 3,378,650 | 3,282,000 | 3,116,680 | 2,339,360 | 2,025,020 |
| Total asset turnover | 0.98 | 1.02 | 1.06 | 1.15 | 1.18 |
September 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,310,080K ÷ $3,378,650K
= 0.98
The total asset turnover for Central Garden & Pet Co. has shown a declining trend over the past five years. The ratio was 1.18 in 2019, indicating that the company generated $1.18 in sales for every $1 of assets. However, this ratio has decreased steadily over the years to 1.15 in 2020, 1.06 in 2021, 1.02 in 2022, and 0.98 in 2023.
A declining total asset turnover ratio may signify inefficiencies in asset utilization and management. It suggests that the company is generating fewer sales relative to its assets, which could indicate potential issues with inventory management, sales generation, or utilization of fixed assets. Management should closely analyze the reasons behind this downward trend and implement strategies to improve asset efficiency and overall performance.
Peer comparison
Sep 30, 2023