Central Garden & Pet Company (CENT)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 28.60% | 29.72% | 29.39% | 29.55% | 29.54% |
| Operating profit margin | 6.36% | 7.79% | 7.70% | 7.34% | 6.38% |
| Pretax margin | 4.89% | 5.94% | 5.87% | 5.67% | 5.01% |
| Net profit margin | 3.80% | 4.56% | 4.59% | 4.48% | 3.89% |
The profitability ratios of Central Garden & Pet Co. over the past five years show some interesting trends. The gross profit margin has been relatively stable, fluctuating around 29% with a slight decline to 28.60% in 2023. This indicates that the company has been able to maintain a consistent level of profitability on its sales, although there was a slight dip in the most recent year.
The operating profit margin has seen more variability, starting at 6.38% in 2019, rising to 7.79% in 2022, but then dropping to 6.36% in 2023. This suggests that the company's ability to control operating expenses and generate profits from its core business operations has fluctuated over the years.
Similarly, the pretax margin and net profit margin have also shown fluctuations. The pretax margin decreased from 5.00% in 2019 to 4.91% in 2023, with some ups and downs in between. The net profit margin followed a similar pattern, declining from 3.89% in 2019 to 3.80% in 2023.
Overall, the profitability ratios of Central Garden & Pet Co. indicate that while the company has been able to maintain a relatively stable level of gross profitability, its ability to generate operating, pretax, and net profits has been more variable over the past five years. These fluctuations may warrant further investigation into the company's cost management, revenue generation, and overall operational efficiency.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.23% | 7.92% | 8.17% | 8.46% | 7.51% |
| Return on assets (ROA) | 3.72% | 4.64% | 4.87% | 5.16% | 4.58% |
| Return on total capital | 8.30% | 10.18% | 10.49% | 11.12% | 9.59% |
| Return on equity (ROE) | 8.66% | 11.41% | 12.42% | 11.21% | 9.32% |
Central Garden & Pet Co.'s profitability ratios indicate a generally strong and consistent performance over the past five years. The operating return on assets (Operating ROA) has shown a slight decline from 8.17% in 2021 to 6.23% in 2023. This indicates that the company's operating income generated from its assets has decreased. However, the return on assets (ROA) has followed a similar trend, declining from 4.87% in 2021 to 3.72% in 2023, reflecting a decrease in overall profitability derived from its assets.
The return on total capital has also shown a decrease from 10.57% in 2021 to 7.98% in 2023, signaling a decline in the company's ability to generate returns from its total capital. Despite these decreases, the company's return on equity (ROE) remains relatively stable, with a slight decrease from 12.42% in 2021 to 8.66% in 2023, indicating a consistent return to shareholders.
Overall, while Central Garden & Pet Co. has experienced a slight decline in its profitability ratios, it has maintained a relatively strong performance in generating returns for its equity holders and total capital. However, a closer examination of the company's operating income and asset management may be warranted to address the declining trend in profitability ratios.