Central Garden & Pet Company A (CENTA)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,256,720 | 2,363,240 | 2,346,280 | 2,332,780 | 1,898,950 |
| Payables | US$ in thousands | 212,606 | 190,902 | 215,681 | 245,542 | 205,234 |
| Payables turnover | 10.61 | 12.38 | 10.88 | 9.50 | 9.25 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,256,720K ÷ $212,606K
= 10.61
The payables turnover ratio of Central Garden & Pet Company A has shown some fluctuations over the past five years. The ratio decreased from 9.25 in 2020 to 9.50 in 2021 but then increased to 10.88 in 2022. Subsequently, it further improved to 12.38 in 2023 before decreasing slightly to 10.61 in 2024.
A high payables turnover ratio generally indicates that the company is paying off its suppliers quickly, which may reflect strong liquidity and efficient working capital management. The increasing trend in the payables turnover ratio from 2020 to 2023 suggests that Central Garden & Pet Company A was managing its payables effectively during this period.
However, a very high payables turnover ratio may also raise concerns regarding the company's relationships with its suppliers, potential cash flow constraints, or missed opportunities to take advantage of trade credit terms. Therefore, while a high payables turnover ratio is generally positive, it is essential to consider the specific circumstances and industry norms when interpreting this ratio.
Peer comparison
Sep 30, 2024