Central Garden & Pet Company (CENT)

Solvency ratios

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
Debt-to-assets ratio 0.35 0.35 0.35 0.36 0.37 0.36 0.35 0.35 0.38 0.38 0.38 0.34 0.32 0.30 0.31 0.32 0.32 0.34 0.34 0.34
Debt-to-capital ratio 0.45 0.45 0.45 0.47 0.47 0.47 0.47 0.48 0.49 0.49 0.49 0.46 0.42 0.39 0.40 0.41 0.42 0.41 0.40 0.41
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
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

Central Garden & Pet Company's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt to finance its operations.

1. Debt-to-assets ratio has remained relatively stable around 0.35 to 0.38 over the past few quarters, indicating that the company finances approximately 35% to 38% of its assets through debt. This suggests a moderate level of leverage.

2. Debt-to-capital ratio has also shown consistency, hovering between 0.45 and 0.49. This ratio reflects the proportion of the company's capital structure that is financed by debt, which has been maintained at around 45% to 49%.

3. Debt-to-equity ratio has fluctuated but generally remained high, ranging from 0.64 to 0.97. This indicates that the company has a significant reliance on debt to fund its operations compared to equity. The fluctuations suggest changes in the capital structure over time.

4. Financial leverage ratio has shown variations but generally trended upwards, indicating an increase in financial leverage from 2.00 to 2.59. This suggests that the company has been using more debt to finance its assets and operations, leading to higher financial risk.

Overall, Central Garden & Pet Company's solvency ratios reflect a consistent reliance on debt to fund its operations, with fluctuations indicating potential shifts in the capital structure and financial leverage over time. It is essential for stakeholders to monitor these ratios closely to assess the company's long-term financial health and risk levels.

Coverage ratios

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
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

Central Garden & Pet Company's interest coverage ratio over the past several quarters has shown a consistent and relatively healthy trend. The interest coverage ratio measures the company's ability to meet interest payments on its outstanding debt using its operating profits. A higher interest coverage ratio is generally favorable as it indicates that the company is generating sufficient operating income to cover its interest expenses.

From December 2019 to December 2023, Central Garden & Pet Company's interest coverage ratio has ranged from 3.61 to 4.89, with an average of approximately 4.12. This indicates that the company has consistently been able to cover its interest expenses by its operating profits at least three to four times over the period, which reflects a strong financial position.

The slight fluctuations in the interest coverage ratio over the quarters could be attributed to various factors, such as changes in the company's operating income or fluctuations in interest expenses. However, the ratios mostly remain above 3.5, suggesting that Central Garden & Pet Company has a comfortable buffer to meet its interest obligations.

Overall, the trend in the interest coverage ratio indicates that Central Garden & Pet Company has been effectively managing its debt obligations and maintaining a healthy financial position in the recent periods.