Central Garden & Pet Company A (CENTA)

Activity ratios

Short-term

Turnover ratios

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 4.05 3.94 3.41 3.31 3.75 3.57 3.20 3.03 3.32 3.55 3.55 3.71 4.47 4.47 3.64 3.67 4.32 4.25 3.34 3.05
Receivables turnover 9.72 6.49 5.72 8.94 9.94 6.63 5.77 10.04 8.86 6.69 5.50 9.87 8.57 6.44 4.71 8.59 6.88 5.09 5.28 8.96
Payables turnover 14.44 16.17 13.12 14.79 16.45 15.59 13.71 16.00 14.44 12.98 10.61 12.81 12.49 11.81 8.77 9.74 9.25 10.13 9.24 9.20
Working capital turnover 2.31 2.37 2.56 2.72 2.65 2.62 2.77 3.03 3.07 3.03 3.23 3.33 3.24 2.72 3.44 2.51 2.48 2.37 2.43 2.46

Central Garden & Pet Company A has shown consistent but fluctuating inventory turnover over the past few years, ranging from 3.05 to 4.47. This indicates that the company is effectively managing its inventory levels and converting inventory into sales.

The receivables turnover ratio has also exhibited variability, ranging from 4.71 to 10.04. This suggests that the company is efficient in collecting its accounts receivable, with higher ratios reflecting quicker collections.

On the other hand, the payables turnover ratio has remained relatively stable, fluctuating between 8.77 and 16.45. A higher payables turnover ratio indicates that the company is taking longer to pay suppliers, potentially improving cash flow.

The working capital turnover ratio has shown a consistent pattern of around 2.37 to 3.44, indicating the company's ability to generate revenue relative to its working capital. A higher ratio indicates efficient use of working capital to generate sales.

Overall, Central Garden & Pet Company A appears to be effectively managing its working capital and cash flows, as evidenced by its activity ratios.

Average number of days

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 90.12 92.72 107.17 110.30 97.45 102.13 114.24 120.38 109.95 102.91 102.82 98.35 81.58 81.70 100.37 99.32 84.50 85.83 109.30 119.57
Days of sales outstanding (DSO) days 37.54 56.21 63.80 40.83 36.71 55.06 63.25 36.35 41.19 54.60 66.42 37.00 42.57 56.65 77.56 42.48 53.05 71.75 69.15 40.73
Number of days of payables days 25.28 22.57 27.82 24.68 22.19 23.41 26.62 22.82 25.28 28.11 34.41 28.50 29.23 30.91 41.61 37.49 39.45 36.02 39.49 39.68

The Days of Inventory on Hand (DOH) for Central Garden & Pet Company A fluctuated over the periods analyzed, ranging from 81.58 days to 120.38 days. A higher number of days indicates that the company holds inventory for a longer period before selling it, which may tie up capital and increase carrying costs. The trend shows that the company was able to reduce its DOH from the peak observed in December 2022.

The Days of Sales Outstanding (DSO) also varied significantly, ranging from 36.35 days to 77.56 days. A lower DSO indicates that the company is collecting revenue more quickly, potentially improving cash flow and liquidity. It is worth noting that there were fluctuations in the DSO over the periods analyzed, with peak values observed in March 2021 and September 2020.

In terms of the Number of Days of Payables, Central Garden & Pet Company A has maintained a relatively stable range between 22.19 days and 41.61 days. A higher number of days of payables suggests that the company takes longer to settle its outstanding payables, which can provide a source of short-term financing. The trend shows slight fluctuations in the number of days of payables over the periods analyzed.

Overall, Central Garden & Pet Company A should focus on optimizing its inventory management to reduce DOH further, improving its collection processes to lower DSO, and maintaining an optimal balance in managing payables to enhance working capital efficiency and overall liquidity.

Long-term

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover 8.37 8.57 8.54 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
Total asset turnover 0.89 0.91 0.93 0.97 0.98 0.96 0.97 1.02 1.02 1.01 1.02 1.09 1.06 1.02 1.05 1.13 1.15 1.13 1.12 1.13

Central Garden & Pet Company A's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into the efficiency of the company in utilizing its assets to generate sales.

The fixed asset turnover ratio has been consistently high over the periods, ranging from 8.24 to 11.02. This indicates that Central Garden & Pet Company A is effectively utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio suggests that the company is efficiently using its plant, property, and equipment to generate sales, which is a positive sign for potential investors.

On the other hand, the total asset turnover ratio shows a stable trend ranging from 0.89 to 1.15. This ratio measures the company's ability to generate sales from all its assets. A total asset turnover ratio above 1 indicates that the company is generating more sales relative to its total assets, which is a sign of efficiency in asset utilization.

Overall, Central Garden & Pet Company A has demonstrated strong efficiency in utilizing both its fixed assets and total assets to generate revenue, as evidenced by the high fixed asset turnover and relatively stable total asset turnover ratios over the periods analyzed. Investors may view these ratios positively as they suggest effective asset management and revenue generation capabilities within the company.