Central Garden & Pet Company (CENT)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 198,622 | 219,016 | 256,639 | 252,378 | 196,910 |
| Long-term debt | US$ in thousands | 1,189,810 | 1,187,960 | 1,186,240 | 1,184,680 | 693,956 |
| Total stockholders’ equity | US$ in thousands | 1,555,650 | 1,451,350 | 1,333,710 | 1,222,250 | 1,076,800 |
| Return on total capital | 7.23% | 8.30% | 10.18% | 10.49% | 11.12% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $198,622K ÷ ($1,189,810K + $1,555,650K)
= 7.23%
Central Garden & Pet Company's return on total capital has shown a declining trend over the past five years. The company's return on total capital was 11.12% in 2020, which decreased to 10.49% in 2021, further declining to 10.18% in 2022, and then to 8.30% in 2023, before dropping to 7.23% in the most recent period of September 30, 2024. This decreasing trend indicates that the company's ability to generate profits from its total capital employed has weakened over the years. Investors and stakeholders may want to further investigate the factors contributing to this decline in return on total capital and assess the company's capital allocation strategies and operational efficiency.
Peer comparison
Sep 30, 2024