Central Garden & Pet Company (CENT)
Working capital 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 current assets | US$ in thousands | 1,886,810 | 1,707,120 | 1,553,850 | 1,543,660 | 1,525,280 |
| Total current liabilities | US$ in thousands | 515,384 | 457,987 | 465,892 | 522,319 | 440,262 |
| Working capital turnover | 2.33 | 2.65 | 3.07 | 3.23 | 2.48 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,200,460K ÷ ($1,886,810K – $515,384K)
= 2.33
Central Garden & Pet Company's working capital turnover has exhibited a downward trend over the past five years, declining from 3.23 in 2021 to 2.33 in 2024. This indicates that the company's ability to generate revenue from its working capital has decreased. A lower working capital turnover ratio may suggest inefficiencies in managing working capital, such as excess inventory or slow collections from customers. It is important for Central Garden & Pet Company to closely monitor its working capital turnover and implement strategies to improve efficiency in order to optimize its financial performance.
Peer comparison
Sep 30, 2024