Central Garden & Pet Company (CENT)
Return on total capital
| 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 interest and tax (EBIT) (ttm) | US$ in thousands | 229,679 | 219,016 | 217,686 | 206,290 | 233,961 | 256,641 | 253,133 | 251,493 | 250,303 | 252,378 | 269,730 | 259,018 | 220,383 | 196,910 | 185,218 | 155,338 | 153,810 | 162,004 | 163,997 | 156,494 |
| Long-term debt | US$ in thousands | 1,189,090 | 1,187,960 | 1,187,500 | 1,212,050 | 1,186,650 | 1,186,240 | 1,185,840 | 1,185,460 | 1,185,060 | 1,184,680 | 1,183,590 | 978,887 | 788,921 | 693,956 | 693,915 | 693,622 | 693,329 | 693,037 | 692,948 | 692,646 |
| 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 |
| Return on total capital | 8.70% | 8.30% | 8.27% | 7.99% | 9.32% | 10.18% | 9.98% | 10.15% | 10.37% | 10.49% | 11.13% | 12.11% | 11.75% | 11.12% | 10.56% | 9.21% | 9.23% | 9.59% | 9.50% | 9.25% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $229,679K ÷ ($1,189,090K + $1,451,890K)
= 8.70%
Central Garden & Pet Company's return on total capital has shown some fluctuations over the past few quarters. The return on total capital decreased from 9.32% in the fourth quarter of 2022 to 8.70% at the end of 2023. This decline indicates that the company's ability to generate profits from both its debt and equity capital decreased slightly.
Despite the decrease, the company's return on total capital has remained above 8% consistently, reflecting the company's efficient use of its capital resources. The highest return on total capital was recorded in the second quarter of 2021 at 12.11%, demonstrating a strong performance during that period.
Overall, Central Garden & Pet Company's return on total capital performance has been relatively stable, with some fluctuations but generally remaining at a healthy level above 8%. This suggests that the company has been effectively managing its capital to generate returns for its investors.
Peer comparison
Dec 31, 2023