Central Garden & Pet Company (CENT)
Debt-to-equity ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 693,037 | 692,948 | 692,646 |
| Total stockholders’ equity | US$ in thousands | 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 | 996,007 | 1,033,640 | 998,749 |
| Debt-to-equity ratio | 0.82 | 0.82 | 0.82 | 0.88 | 0.90 | 0.89 | 0.88 | 0.92 | 0.96 | 0.97 | 0.95 | 0.84 | 0.73 | 0.64 | 0.65 | 0.70 | 0.71 | 0.70 | 0.67 | 0.69 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,189,090K ÷ $1,451,890K
= 0.82
The debt-to-equity ratio is a key financial metric that indicates the proportion of a company's financing that comes from debt compared to equity. A higher debt-to-equity ratio suggests that the company is more reliant on borrowing to finance its operations, while a lower ratio indicates a healthier balance between debt and equity.
In the case of Central Garden & Pet Company, we observe fluctuations in the debt-to-equity ratio over the past few quarters. As of December 31, 2023, the ratio stood at 0.82, remaining relatively consistent compared to the previous quarter. This indicates that the company's debt level was 82% of its equity at that time.
Looking at the trend over multiple quarters, we see that the ratio has ranged from 0.64 to 0.97 in the past few years. The highest ratio was recorded in September 2021 at 0.97, suggesting a higher level of debt relative to equity at that point in time. Conversely, the lowest ratio of 0.64 was observed in September 2020, indicating a lower reliance on debt financing compared to equity.
Overall, the trend in Central Garden & Pet Company's debt-to-equity ratio shows fluctuations but generally suggests a moderate level of debt relative to equity in its capital structure. It is important to continue monitoring this ratio to assess the company's financial leverage and risk profile.
Peer comparison
Dec 31, 2023