Central Garden & Pet Company (CENT)
Debt-to-equity 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-equity ratio | 0.82 | 0.89 | 0.97 | 0.64 | 0.70 |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,187,960K ÷ $1,451,350K
= 0.82
The debt-to-equity ratio for Central Garden & Pet Co. has shown some fluctuation over the past five years. In 2023, the ratio stands at 0.82, indicating that the company has $0.82 in debt for every $1 of equity. This represents a decrease from the previous year, suggesting a lower level of financial leverage. However, compared to 2020 and 2019, the current ratio remains higher, signifying a higher reliance on debt financing. It is important to note that a lower debt-to-equity ratio can indicate a more conservative capital structure, while a higher ratio may signal a higher risk to investors. Therefore, continued monitoring of this ratio is warranted to assess the company's financial risk and stability.
Peer comparison
Sep 30, 2023