Central Garden & Pet Company (CENT)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 134,506 | 125,643 | 120,818 | 113,112 | 134,710 | 152,152 | 151,135 | 151,901 | 155,142 | 151,746 | 168,342 | 160,956 | 130,706 | 120,676 | 109,527 | 86,879 | 86,566 | 92,786 | 100,914 | 96,307 |
| Total stockholders’ equity | US$ in thousands | 1,451,890 | 1,451,350 | 1,445,530 | 1,371,090 | 1,322,850 | 1,333,710 | 1,351,020 | 1,293,090 | 1,228,230 | 1,222,250 | 1,240,360 | 1,160,570 | 1,086,590 | 1,076,800 | 1,059,420 | 993,013 | 973,124 | 996,007 | 1,033,640 | 998,749 |
| ROE | 9.26% | 8.66% | 8.36% | 8.25% | 10.18% | 11.41% | 11.19% | 11.75% | 12.63% | 12.42% | 13.57% | 13.87% | 12.03% | 11.21% | 10.34% | 8.75% | 8.90% | 9.32% | 9.76% | 9.64% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $134,506K ÷ $1,451,890K
= 9.26%
Central Garden & Pet Company's return on equity (ROE) has exhibited some fluctuations over the past few quarters. The ROE for the most recent quarter, ending on December 31, 2023, stood at 9.26%, a slight improvement from the previous quarter. Despite the increase, the ROE remains below double digits, indicating that the company's profitability in relation to shareholders' equity is moderate.
Looking at the trend over the past few quarters, there appears to be a general downward trajectory in the ROE, with occasional fluctuations. The ROE peaked at 13.87% in the second quarter of 2021 but has since trended downwards. This could suggest that Central Garden & Pet Company may be facing challenges in generating higher returns on the equity invested by shareholders.
It is important for investors and stakeholders to closely monitor the company's ROE performance to assess its effectiveness in utilizing equity to generate profits. A sustained improvement or decline in ROE could signal underlying changes in the company's financial health and efficiency in generating returns for its shareholders.
Peer comparison
Dec 31, 2023