Central Garden & Pet Company A (CENTA)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,316,578 | 3,309,592 | 3,267,352 | 3,259,572 | 3,305,089 | 3,338,693 | 3,382,118 | 3,405,108 | 3,390,545 | 3,304,411 | 3,185,718 | 2,995,231 | 2,773,382 | 2,695,509 | 2,560,284 | 2,433,376 | 2,403,848 | 2,383,010 | 2,344,580 | 2,295,948 |
| Property, plant and equipment | US$ in thousands | 389,440 | 391,768 | 392,332 | 395,788 | 396,675 | 396,979 | 390,326 | 384,940 | 340,133 | 328,571 | 306,029 | 295,769 | 252,157 | 244,667 | 239,240 | 241,878 | 241,795 | 245,405 | 238,948 | 217,538 |
| Fixed asset turnover | 8.52 | 8.45 | 8.33 | 8.24 | 8.33 | 8.41 | 8.66 | 8.85 | 9.97 | 10.06 | 10.41 | 10.13 | 11.00 | 11.02 | 10.70 | 10.06 | 9.94 | 9.71 | 9.81 | 10.55 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,316,578K ÷ $389,440K
= 8.52
The fixed asset turnover ratio for Central Garden & Pet Company A has shown a decreasing trend over the past five quarters, indicating that the company's efficiency in generating sales from its investment in fixed assets has been declining. From a high of 11.02 in March 2020, the ratio has gradually decreased to 8.52 in December 2023. This suggests that the company is not utilizing its fixed assets as effectively in generating revenue compared to previous periods.
A fixed asset turnover ratio above 1 indicates that the company is generating more revenue per dollar invested in fixed assets. Central Garden & Pet Company A consistently maintains a high fixed asset turnover, with values well above 1, indicating efficient utilization of fixed assets to generate sales. However, the recent decline in the ratio warrants further investigation into the company's operational efficiency and management of fixed assets to ensure sustainable growth and profitability in the future.
Peer comparison
Dec 31, 2023