Central Garden & Pet Company (CENT)
Return on assets (ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 125,643 | 152,152 | 151,746 | 120,676 | 92,786 |
| Total assets | US$ in thousands | 3,378,650 | 3,282,000 | 3,116,680 | 2,339,360 | 2,025,020 |
| ROA | 3.72% | 4.64% | 4.87% | 5.16% | 4.58% |
September 30, 2023 calculation
ROA = Net income ÷ Total assets
= $125,643K ÷ $3,378,650K
= 3.72%
Central Garden & Pet Co.'s return on assets (ROA) has exhibited a declining trend over the past five years. In the fiscal year ending September 30, 2023, the company's ROA stood at 3.72%, marking a decrease from the previous year's 4.64%. This downward trajectory is consistent with the ROA figures of 4.87% in 2021 and 5.16% in 2020. Despite the decline, the company's ROA in 2023 was still higher than the 4.58% recorded in 2019.
The decreasing ROA trend indicates that Central Garden & Pet Co. may be experiencing challenges in generating profits relative to its total assets. It suggests that the company's asset utilization and/or profitability have weakened over the years. When evaluating the ROA, it is essential to consider the company's efficiency in utilizing its assets to generate earnings, as well as assessing its profitability in relation to the total assets employed.
Overall, the declining ROA trend for Central Garden & Pet Co. calls for further analysis of the factors affecting its profitability and asset management in order to identify potential areas for improvement.
Peer comparison
Sep 30, 2023