Central Garden & Pet Company (CENT)

Pretax margin

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	141,095	161,991	198,386	193,781	152,894
Revenue	US$ in thousands	3,200,460	3,310,100	3,338,590	3,303,680	2,695,510
Pretax margin		4.41%	4.89%	5.94%	5.87%	5.67%

September 30, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $141,095K ÷ $3,200,460K
= 4.41%

Central Garden & Pet Company's pretax margin has shown a declining trend over the past five years. The pretax margin decreased from 5.67% in 2020 to 4.41% in 2024. This indicates that the company's profitability before taking into account taxes and other non-operating expenses has decreased over the years. A lower pretax margin could be indicative of increasing costs relative to revenues, inefficient operations, or pricing pressures. It would be important for the company to further analyze the factors driving this decline in pretax margin and implement strategies to improve profitability moving forward.

Peer comparison

Sep 30, 2024

Company name

Symbol

Pretax margin

Central Garden & Pet Company

CENT

4.41%

Central Garden & Pet Company A