Central Garden & Pet Company (CENT)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 162,004 | 163,997 | 156,494 |
| Interest expense (ttm) | US$ in thousands | 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 | 42,614 | 42,549 | 42,470 |
| Interest coverage | 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 | 3.80 | 3.85 | 3.68 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $229,679K ÷ $56,872K
= 4.04
Central Garden & Pet Company has shown a relatively stable interest coverage ratio over the past few quarters, averaging around 4. This indicates that the company's earnings are sufficient to cover its interest expenses by a factor of 4 times on average. A higher interest coverage ratio is generally viewed as a positive sign, as it suggests the company is better able to meet its interest obligations from its operating income. The consistent performance of the interest coverage ratio suggests that Central Garden & Pet Company has been effectively managing its debt and generating enough earnings to comfortably cover its interest expenses. It also indicates the company's ability to service its debt obligations without putting undue strain on its financial health.
Peer comparison
Dec 31, 2023