Central Garden & Pet Company (CENT)
Working capital turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,171,768 | 3,295,756 | 3,308,168 | 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 |
| Total current assets | US$ in thousands | 1,886,810 | 1,910,170 | 1,850,620 | 1,714,060 | 1,707,120 | 1,741,680 | 1,653,880 | 1,512,620 | 1,553,850 | 1,633,240 | 1,623,890 | 1,531,720 | 1,543,660 | 1,682,750 | 1,407,190 | 1,547,710 | 1,525,280 | 1,467,290 | 1,358,930 | 1,321,080 |
| Total current liabilities | US$ in thousands | 515,384 | 521,445 | 556,490 | 494,171 | 457,987 | 496,387 | 475,949 | 423,039 | 465,892 | 516,187 | 570,749 | 513,350 | 522,319 | 511,007 | 536,763 | 441,212 | 440,262 | 385,250 | 357,100 | 343,860 |
| Working capital turnover | 2.31 | 2.37 | 2.56 | 2.72 | 2.65 | 2.62 | 2.77 | 3.03 | 3.07 | 3.03 | 3.23 | 3.33 | 3.24 | 2.72 | 3.44 | 2.51 | 2.48 | 2.37 | 2.43 | 2.46 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,171,768K ÷ ($1,886,810K – $515,384K)
= 2.31
Central Garden & Pet Company's working capital turnover has exhibited fluctuations over the past few years. The ratio has ranged between 2.31 and 3.44, with a general increasing trend noted from 2020 to 2023, peaking at 3.44 in March 2021. This indicates the company's ability to efficiently utilize its working capital to generate sales.
However, in more recent periods, the working capital turnover has slightly decreased, indicating a potential slowdown in the efficient utilization of working capital. The ratio stood at 2.31 as of September 2024, implying a decrease in the company's ability to generate sales relative to its working capital.
Overall, a working capital turnover above 1 indicates the company is effectively using its working capital to generate sales. The declining trend in the ratio in recent periods should be further analyzed to understand any underlying reasons and implications for Central Garden & Pet Company's operational efficiency and financial performance.
Peer comparison
Sep 30, 2024