Central Garden & Pet Company (CENT)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,187,960 | 1,186,240 | 1,184,680 | 693,956 | 693,037 |
| Total assets | US$ in thousands | 3,378,650 | 3,282,000 | 3,116,680 | 2,339,360 | 2,025,020 |
| Debt-to-assets ratio | 0.35 | 0.36 | 0.38 | 0.30 | 0.34 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,187,960K ÷ $3,378,650K
= 0.35
The debt-to-assets ratio for Central Garden & Pet Co. has shown some fluctuations over the past five years. As of September 30, 2023, the ratio stands at 0.35, slightly lower than the previous year. This indicates that the company's total debt accounts for 35% of its total assets.
The trend over the last five years suggests that the company has maintained a relatively conservative approach to financing its operations, with the ratio fluctuating within a relatively narrow range. A lower debt-to-assets ratio generally suggests a lower financial risk, as it indicates that the company relies less on debt to finance its assets.
It's worth noting that the decrease in the ratio from the previous year could indicate either a reduction in debt or an increase in assets. Further analysis of the company's financial statements and capital structure would be required to fully understand the drivers behind this trend.
Overall, the company's debt-to-assets ratio indicates a prudent approach to capital structure management, which may help to mitigate financial risk and enhance the company's long-term financial stability.
Peer comparison
Sep 30, 2023