Central Garden & Pet Company (CENT)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 107,983 | 125,643 | 152,152 | 151,746 | 120,676 |
| Total stockholders’ equity | US$ in thousands | 1,555,650 | 1,451,350 | 1,333,710 | 1,222,250 | 1,076,800 |
| ROE | 6.94% | 8.66% | 11.41% | 12.42% | 11.21% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $107,983K ÷ $1,555,650K
= 6.94%
Central Garden & Pet Company's return on equity (ROE) has been fluctuating over the past five years. In Sep 30, 2024, the ROE was 6.94%, which shows a decrease from the previous year's 8.66% in Sep 30, 2023. This downward trend is also evident when comparing to Sep 30, 2022, when the ROE was higher at 11.41%. The company experienced a further decline from Sep 30, 2021, where the ROE was 12.42%, to Sep 30, 2020, where it stood at 11.21%.
The decreasing trend in ROE may suggest that Central Garden & Pet Company's ability to generate profits from shareholders' equity is weakening over time. It is important for the company to analyze the factors contributing to this decline in ROE and take necessary actions to improve its profitability and efficiency in utilizing equity.
Peer comparison
Sep 30, 2024