Central Garden & Pet Company (CENT)
Return on total capital
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 198,622 | 242,161 | 246,917 | 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 |
| Long-term debt | US$ in thousands | 1,189,810 | 1,189,370 | 1,188,960 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,555,650 | 1,593,650 | 1,510,790 | 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 |
| Return on total capital | 7.23% | 8.70% | 9.15% | 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% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 variations over the past few quarters, ranging from 7.23% to 12.11%. The trend appears to be fluctuating with no clear upward or downward direction. The return on total capital has generally been in the 8-12% range, indicating that the company is generating a moderate to decent return on the capital employed in its operations.
It is worth noting that the return on total capital peaked at 12.11% in March 2021 before experiencing slight fluctuations in subsequent quarters. The latest figure of 7.23% in September 2024 suggests a slight decline in the return on total capital compared to previous quarters. This decrease could be attributed to various factors such as changes in profitability, operational efficiency, or capital structure.
Overall, Central Garden & Pet Company's return on total capital provides insight into how effectively the company is utilizing its total capital to generate profits. Investors and stakeholders should continue to monitor this ratio along with other key financial metrics to assess the company's financial performance and sustainability.
Peer comparison
Sep 30, 2024