Central Garden & Pet Company (CENT)
Financial leverage ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,553,440 | 3,607,880 | 3,540,020 | 3,422,330 | 3,378,650 | 3,419,950 | 3,350,800 | 3,229,070 | 3,282,000 | 3,345,930 | 3,349,260 | 3,118,040 | 3,116,680 | 3,123,500 | 2,847,100 | 2,446,100 | 2,339,360 | 2,263,970 | 2,167,410 | 2,135,160 |
| Total stockholders’ equity | US$ in thousands | 1,555,650 | 1,593,650 | 1,510,790 | 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 |
| Financial leverage ratio | 2.28 | 2.26 | 2.34 | 2.36 | 2.33 | 2.37 | 2.44 | 2.44 | 2.46 | 2.48 | 2.59 | 2.54 | 2.55 | 2.52 | 2.45 | 2.25 | 2.17 | 2.14 | 2.18 | 2.19 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,553,440K ÷ $1,555,650K
= 2.28
The financial leverage ratio of Central Garden & Pet Company has shown some fluctuations over the past few years. The ratio indicates that the company has been using debt to finance its operations alongside equity.
Looking at the trend, we can observe a general increase in the financial leverage ratio from 2.14 at the end of December 2019 to 2.28 at the end of September 2024. This suggests that the company has been gradually relying more on debt to fund its activities compared to equity.
While a higher financial leverage ratio can amplify returns when operating profitably, it also increases the financial risk and the cost of borrowing. It is essential for stakeholders to monitor this ratio closely to ensure that the company's debt levels remain sustainable and manageable.
Further analysis, including comparisons with industry averages and peer companies, would provide additional insights into the company's leverage position.
Peer comparison
Sep 30, 2024