Central Garden & Pet Company (CENT)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.49% | 28.60% | 29.72% | 29.39% | 29.55% |
| Operating profit margin | 5.79% | 6.36% | 7.79% | 7.70% | 7.34% |
| Pretax margin | 4.41% | 4.89% | 5.94% | 5.87% | 5.67% |
| Net profit margin | 3.37% | 3.80% | 4.56% | 4.59% | 4.48% |
Central Garden & Pet Company's profitability ratios show fluctuations over the past five years. The gross profit margin has ranged from 28.60% to 29.72%. The operating profit margin has varied from 5.79% to 7.79%, indicating changes in efficiency and cost management. The pretax margin has fluctuated between 4.41% and 5.94%, reflecting the company's ability to generate earnings before taxes. The net profit margin has ranged from 3.37% to 4.59%, indicating the company's bottom-line profitability after all expenses have been deducted. Overall, while the company has shown some variability in profitability over the years, it has maintained a positive trend in generating profits relative to its revenue.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.22% | 6.23% | 7.92% | 8.17% | 8.46% |
| Return on assets (ROA) | 3.04% | 3.72% | 4.64% | 4.87% | 5.16% |
| Return on total capital | 7.23% | 8.30% | 10.18% | 10.49% | 11.12% |
| Return on equity (ROE) | 6.94% | 8.66% | 11.41% | 12.42% | 11.21% |
Central Garden & Pet Company's profitability ratios over the past five years indicate a general decreasing trend in profitability measures.
Operating return on assets (Operating ROA) has gradually declined from 8.46% in 2020 to 5.22% in 2024, indicating that the company's ability to generate profits from its assets through normal operations has decreased over time.
Return on assets (ROA) has also shown a similar decreasing trend, from 5.16% in 2020 to 3.04% in 2024. This indicates that the overall profitability of the company in relation to its total assets has decreased over the years.
Return on total capital has followed the same trend, decreasing from 11.12% in 2020 to 7.23% in 2024. This metric reflects the company's ability to generate returns for both debt and equity holders, showing a declining performance over the years.
Return on equity (ROE) has fluctuated but generally decreased from 12.42% in 2021 to 6.94% in 2024. This metric represents the returns generated for the company's shareholders, and the decreasing trend indicates a decline in the company's profitability relative to its equity.
Overall, these declining profitability ratios suggest that Central Garden & Pet Company's performance in generating profits from its operations and assets has weakened over the past five years.