Central Garden & Pet Company (CENT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 3,553,440 | 3,378,650 | 3,282,000 | 3,116,680 | 2,339,360 |
| Operating ROA | 5.22% | 6.23% | 7.92% | 8.17% | 8.46% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $185,387K ÷ $3,553,440K
= 5.22%
Central Garden & Pet Company's operating return on assets (operating ROA) has exhibited a downward trend over the past five years. In fiscal year 2020, the operating ROA was 8.46%, which then decreased to 8.17% in fiscal year 2021, further dropping to 7.92% in fiscal year 2022, and then to 6.23% in fiscal year 2023. The most recent data available for fiscal year 2024 shows an operating ROA of 5.22%.
This declining trend in operating ROA indicates that the company's ability to generate earnings from its operational assets has been weakening over time. It suggests that the company may be facing challenges in improving operational efficiency, reducing costs, or increasing revenue generation from its assets. Investors and stakeholders may want to further investigate the reasons behind this decline in operating ROA and assess the implications for the company's financial performance and strategic direction.
Peer comparison
Sep 30, 2024