Central Garden & Pet Company (CENT)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 1,307,190 | 1,349,630 | 1,352,290 |
| Total current liabilities | US$ in thousands | 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 | 278,525 | 278,813 | 299,128 |
| Working capital turnover | 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 | 2.32 | 2.19 | 2.18 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,316,578K ÷ ($1,714,060K – $494,171K)
= 2.72
The working capital turnover ratio for Central Garden & Pet Company has shown fluctuations over the past several quarters, ranging from 2.18 to 3.44. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to generate sales.
Looking at the trend, we observe that the working capital turnover ratio peaked at 3.44 in March 2021 but has since fluctuated within a range. The ratio has generally exhibited a declining trend since the peak, with occasional increases and decreases in between.
It is important to note that a high working capital turnover ratio may suggest efficient management of working capital. However, it is also crucial to assess other financial metrics and performance indicators to get a comprehensive understanding of the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023