Central Garden & Pet Company (CENT)
Operating profit margin
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 185,387 | 210,646 | 260,036 | 254,496 | 197,977 |
| Revenue | US$ in thousands | 3,200,460 | 3,310,100 | 3,338,590 | 3,303,680 | 2,695,510 |
| Operating profit margin | 5.79% | 6.36% | 7.79% | 7.70% | 7.34% |
September 30, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $185,387K ÷ $3,200,460K
= 5.79%
The operating profit margin of Central Garden & Pet Company has shown a decreasing trend over the past five years. In fiscal year 2024, the operating profit margin decreased to 5.79% from 6.36% in 2023. This represents a decline in the company's ability to generate profits from its core operations compared to the previous year.
When compared to fiscal year 2022, where the operating profit margin was 7.79%, it is evident that there has been a significant decrease in profitability. This downward trend continued from fiscal year 2021, where the operating profit margin was 7.70%, and fiscal year 2020, where it stood at 7.34%.
The decreasing trend in operating profit margin indicates that Central Garden & Pet Company may be facing challenges in maintaining profitability from its core business operations. It could signal issues such as increasing costs, pricing pressures, or inefficiencies in operations that are impacting the company's ability to generate profits. Additionally, it may suggest a need for the company to implement cost-saving measures or strategies to improve operational efficiency in order to enhance its profitability in the future.
Peer comparison
Sep 30, 2024