Central Garden & Pet Company (CENT)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 218,652 | 210,646 | 214,175 | 205,424 | 234,228 | 260,036 | 256,743 | 255,905 | 253,670 | 254,496 | 270,058 | 261,457 | 222,952 | 197,977 | 183,673 | 147,904 | 143,952 | 152,068 | 159,415 | 151,363 |
| Total assets | US$ in thousands | 3,422,330 | 3,378,650 | 3,419,950 | 3,350,800 | 3,229,070 | 3,282,000 | 3,345,930 | 3,349,260 | 3,118,040 | 3,116,680 | 3,123,500 | 2,847,100 | 2,446,100 | 2,339,360 | 2,263,970 | 2,167,410 | 2,135,160 | 2,025,020 | 2,064,920 | 2,046,140 |
| Operating ROA | 6.39% | 6.23% | 6.26% | 6.13% | 7.25% | 7.92% | 7.67% | 7.64% | 8.14% | 8.17% | 8.65% | 9.18% | 9.11% | 8.46% | 8.11% | 6.82% | 6.74% | 7.51% | 7.72% | 7.40% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $218,652K ÷ $3,422,330K
= 6.39%
Central Garden & Pet Company's operating return on assets (operating ROA) has shown some fluctuations over the past several quarters. The operating ROA ranged from a low of 6.13% in March 31, 2023, to a high of 9.18% in March 31, 2021. Overall, the operating ROA has been relatively stable, with the average ranging between 6% and 9%.
The decreasing trend in operating ROA from 9.18% in March 31, 2021, to 6.39% in December 31, 2023, could indicate a potential decline in the company's operating efficiency and profitability over this period. This decrease may be a cause for concern as it suggests that the company's ability to generate operating income from its assets has weakened.
Further analysis of the factors affecting operating ROA, such as changes in revenue, expenses, asset management, and profitability, would provide more insights into the underlying reasons for the fluctuations observed in Central Garden & Pet Company's operating ROA. Monitoring these trends and conducting a deeper analysis could help identify areas for improvement and guide strategic decision-making to enhance the company's performance.
Peer comparison
Dec 31, 2023