Central Garden & Pet Company (CENT)
Operating profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 210,646 | 260,036 | 254,496 | 197,977 | 152,068 |
| Revenue | US$ in thousands | 3,310,080 | 3,338,590 | 3,303,680 | 2,695,510 | 2,383,000 |
| Operating profit margin | 6.36% | 7.79% | 7.70% | 7.34% | 6.38% |
September 30, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $210,646K ÷ $3,310,080K
= 6.36%
The operating profit margin for Central Garden & Pet Co. has shown a fluctuating trend over the past five years. In 2019, the operating profit margin was 6.38%, which increased to 7.34% in 2020 before slightly decreasing to 7.70% in 2021. However, there was a further decrease in 2022 to 7.79%, followed by a more significant drop to 6.36% in 2023.
This declining trend in the operating profit margin may indicate several possibilities. The company may be facing increasing operating expenses relative to its revenue, which could be impacting its profitability. Alternatively, changes in pricing strategies, cost structures, or product mix may also be influencing the margin.
It is essential for stakeholders to closely monitor this trend and the underlying factors driving the changes in the operating profit margin to assess the company's operational efficiency and financial health.
Peer comparison
Sep 30, 2023