Central Garden & Pet Company (CENT)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 172,807 | 161,991 | 159,179 | 147,903 | 175,721 | 198,386 | 195,229 | 194,880 | 198,197 | 193,781 | 214,609 | 205,199 | 166,033 | 152,894 | 141,311 | 112,584 | 111,169 | 119,390 | 121,448 | 114,024 |
| Revenue (ttm) | US$ in thousands | 3,316,578 | 3,309,592 | 3,267,352 | 3,259,572 | 3,305,089 | 3,338,693 | 3,382,118 | 3,405,108 | 3,390,545 | 3,304,411 | 3,185,718 | 2,995,231 | 2,773,382 | 2,695,509 | 2,560,284 | 2,433,376 | 2,403,848 | 2,383,010 | 2,344,580 | 2,295,948 |
| Pretax margin | 5.21% | 4.89% | 4.87% | 4.54% | 5.32% | 5.94% | 5.77% | 5.72% | 5.85% | 5.86% | 6.74% | 6.85% | 5.99% | 5.67% | 5.52% | 4.63% | 4.62% | 5.01% | 5.18% | 4.97% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $172,807K ÷ $3,316,578K
= 5.21%
Central Garden & Pet Company's pretax margin has displayed some fluctuations over the past few quarters. The pretax margin indicates the company's efficiency in controlling operating expenses in relation to its revenues before taxes are taken into account. The trend shows a generally stable performance, with some minor variations.
The company's pretax margin ranged from a low of 4.54% in March 2023 to a high of 6.85% in June 2021. Overall, the pretax margin has been in the 4.5% to 6.9% range, with the most recent figure standing at 5.21% at the end of December 2023. This indicates that for every dollar of revenue generated, the company is able to achieve a pretax profit of 5.21 cents.
It is essential for Central Garden & Pet Company to keep a close eye on its operating expenses to ensure that the pretax margin remains stable or improves in the future. By maintaining a healthy pretax margin, the company can have more resources to reinvest in the business, pay down debt, or return value to shareholders.
Peer comparison
Dec 31, 2023