Central Garden & Pet Company (CENT)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 198,622 | 242,161 | 246,917 | 229,679 | 219,016 | 217,686 | 206,290 | 233,961 | 256,641 | 253,133 | 251,493 | 250,303 | 252,378 | 269,730 | 259,018 | 220,383 | 196,910 | 185,218 | 155,338 | 153,810 |
| Interest expense (ttm) | US$ in thousands | 57,527 | 56,550 | 56,372 | 56,872 | 57,025 | 58,507 | 58,387 | 58,240 | 58,255 | 57,904 | 56,613 | 52,106 | 58,597 | 55,121 | 53,819 | 54,350 | 44,016 | 43,907 | 42,754 | 42,641 |
| Interest coverage | 3.45 | 4.28 | 4.38 | 4.04 | 3.84 | 3.72 | 3.53 | 4.02 | 4.41 | 4.37 | 4.44 | 4.80 | 4.31 | 4.89 | 4.81 | 4.05 | 4.47 | 4.22 | 3.63 | 3.61 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $198,622K ÷ $57,527K
= 3.45
Central Garden & Pet Company's interest coverage ratio has shown stability and consistency over the past few years. The interest coverage ratio measures the company's ability to meet interest payments on its debt obligations using its operating income.
Based on the data provided, Central Garden & Pet Company's interest coverage ratio has ranged between 3.45 and 4.89 over the last 20 quarters. Generally, a higher interest coverage ratio indicates a company is more capable of meeting its interest obligations from its operating income.
Central Garden & Pet Company has maintained its interest coverage above 3.0, which is generally considered the minimum acceptable level. This indicates that the company has been generating enough operating income to cover its interest expenses comfortably.
Overall, the consistent interest coverage ratio above 3.0 reflects Central Garden & Pet Company's strong financial position and ability to service its debt obligations. Investors and creditors may view this as a positive indicator of the company's financial health and ability to manage its debt effectively.
Peer comparison
Sep 30, 2024