Central Garden & Pet Company (CENT)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,451,350 | 1,333,710 | 1,222,250 | 1,076,800 | 996,007 |
| Debt-to-capital ratio | 0.45 | 0.47 | 0.49 | 0.39 | 0.41 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,187,960K ÷ ($1,187,960K + $1,451,350K)
= 0.45
The debt-to-capital ratio of Central Garden & Pet Co. has exhibited some fluctuations over the past five years. As of September 30, 2023, the ratio stood at 0.45, indicating that the company's long-term debt accounts for 45% of its total capital. This represents a slight decrease from the previous year's ratio of 0.47 and a notable decline from the ratio of 0.49 in 2021. On the other hand, it is important to note that the current ratio is higher than that of 2020 and 2019, when it stood at 0.39 and 0.41 respectively. This suggests that the company's reliance on debt as a source of capital has increased in recent years, reaching its peak in 2021. Overall, while the downward trend in the ratio from 2021 to 2023 may indicate a positive shift towards a lower dependence on debt for financing, a comprehensive analysis of the company's financial structure and future borrowing plans would be needed to provide a more insightful interpretation of these variations.
Peer comparison
Sep 30, 2023