Central Garden & Pet Company (CENT)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.43 | 0.45 | 0.47 | 0.49 | 0.39 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,189,810K ÷ ($1,189,810K + $1,555,650K)
= 0.43
The debt-to-capital ratio of Central Garden & Pet Company has exhibited a downward trend over the past five years, decreasing from 0.49 in September 2020 to 0.43 in September 2024. This indicates that the company's reliance on debt to finance its operations and growth has decreased relative to its total capital base during this period. A lower debt-to-capital ratio signifies a lower level of financial risk for the company, as it indicates a smaller portion of debt in relation to the total capital structure. It suggests that Central Garden & Pet Company has been able to manage its debt levels effectively or has utilized other sources of capital to fund its activities. However, it is important to note that the ratio is still above 0.30, which may signal that the company maintains a moderate to high level of debt relative to its total capital. Continued monitoring of the trend in the debt-to-capital ratio is essential to assess the company's financial health and leverage position.
Peer comparison
Sep 30, 2024