Central Garden & Pet Company A (CENTA)
Number of days of payables
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 12.38 | 10.88 | 9.50 | 9.25 | 11.25 | |
| Number of days of payables | days | 29.48 | 33.55 | 38.42 | 39.45 | 32.45 |
September 30, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.38
= 29.48
The number of days of payables for Central Garden & Pet Co. has shown a decreasing trend over the past five years. As of September 30, 2023, the company's number of days of payables stood at 29.48 days, reflecting a more efficient management of its accounts payable. This suggests that the company is taking less time to pay its suppliers or trade payables, which can be indicative of effective working capital management. However, it is important to consider the reasons behind this trend, as a significant decrease in the number of days of payables could also signal a change in payment terms or potential liquidity issues. Nonetheless, the consistent decrease in this ratio implies a potential improvement in the company's cash flow and working capital efficiency.
Peer comparison
Sep 30, 2023