Central Garden & Pet Company A (CENTA)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,200,460 | 3,310,100 | 3,338,590 | 3,303,680 | 2,695,510 |
| Property, plant and equipment | US$ in thousands | 379,166 | 391,768 | 396,979 | 328,571 | 244,667 |
| Fixed asset turnover | 8.44 | 8.45 | 8.41 | 10.05 | 11.02 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,200,460K ÷ $379,166K
= 8.44
The fixed asset turnover ratio of Central Garden & Pet Company A has shown a declining trend over the last five years, starting at 11.02 in 2020 and decreasing to 8.44 in 2024. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenues. A higher fixed asset turnover ratio indicates that the company is generating more sales relative to its investment in fixed assets.
Although the ratio has declined slightly over the years, the values are still relatively high, ranging between 8.41 and 11.02. This suggests that Central Garden & Pet Company A has been effectively using its fixed assets to generate sales revenue. However, the decreasing trend could indicate potential inefficiencies in asset utilization or changes in the company's business operations that may impact future performance.
It is important for the company to monitor this ratio closely and investigate the reasons behind the declining trend to ensure optimal utilization of its fixed assets and sustainable revenue generation in the future.
Peer comparison
Sep 30, 2024