Central Garden & Pet Company (CENT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 2,025,020 | 2,064,920 | 2,046,140 |
| 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 |
| Financial leverage ratio | 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 | 2.03 | 2.00 | 2.05 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,422,330K ÷ $1,451,890K
= 2.36
The financial leverage ratio of Central Garden & Pet Company has fluctuated over the past few quarters, ranging from 2.00 to 2.59. This ratio indicates that the company relies on a significant amount of debt to finance its operations and investments. A ratio above 1 suggests that the company has more debt than equity in its capital structure.
The trend of the financial leverage ratio indicates that the company's debt levels have been relatively stable, with some minor fluctuations. However, the ratio has been gradually increasing over the past few quarters, reaching a peak of 2.59 in the most recent period. This trend could signify an increase in the company's financial risk as a higher leverage ratio typically indicates higher financial risk.
It is important for investors and stakeholders to closely monitor the financial leverage ratio of Central Garden & Pet Company to assess its ability to meet its debt obligations and manage its financial health effectively. A high financial leverage ratio may indicate a higher risk of default or financial distress, so it is crucial for the company to ensure proper debt management and maintain a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023