Central Garden & Pet Company A (CENTA)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 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 3.60 3.53 3.11
Receivables turnover 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 7.94 5.93 5.03
Payables turnover 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 11.25 11.93 10.22
Working capital turnover 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 2.32 2.19 2.18

Central Garden & Pet Company's activity ratios provide insights into how efficiently the company is managing its assets and liabilities.

1. Inventory turnover: This ratio measures how effectively the company is managing its inventory by showing how many times the inventory is sold and replaced during a period. The inventory turnover has been relatively stable over the periods, averaging around 3.5 times a year. This indicates that Central Garden & Pet Company is able to sell through its inventory at a consistent pace.

2. Receivables turnover: This ratio reflects how effectively the company is collecting payments from its customers. The trend in receivables turnover shows some variability, ranging from a low of 4.71 to a high of 10.04. Generally, higher receivables turnover is preferred as it indicates faster collection of receivables. Central Garden & Pet Company's receivables turnover has been relatively healthy, implying efficient management of accounts receivable.

3. Payables turnover: The payables turnover ratio shows how quickly the company is paying its suppliers. Central Garden & Pet Company's payables turnover has been consistently high, averaging around 13-16 times a year. A high payables turnover suggests that the company is efficiently managing its trade payables and taking advantage of favorable credit terms.

4. Working capital turnover: This ratio measures how effectively the company is utilizing its working capital to generate sales revenue. The working capital turnover has been relatively stable across the periods, averaging around 2.5-3.5. A higher working capital turnover indicates better efficiency in using working capital. Central Garden & Pet Company's working capital turnover reflects a decent level of efficiency in generating sales relative to its working capital.

Overall, based on the activity ratios analyzed, Central Garden & Pet Company A appears to be efficiently managing its assets and liabilities to support its sales and operations.

Average number of days

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
Days of inventory on hand (DOH) days 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 85.83 109.30 119.57 101.35 103.34 117.20
Days of sales outstanding (DSO) days 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 45.97 61.58 72.51
Number of days of payables days 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 32.45 30.60 35.71

Days of inventory on hand (DOH) measures how many days, on average, a company holds onto its inventory before selling it. A higher DOH indicates that inventory is not moving as quickly, tying up capital and potentially leading to obsolescence.

Central Garden & Pet Company A's DOH has fluctuated over the past few quarters, with a significant decrease in DOH in the most recent quarter compared to the same quarter in the previous year. This suggests better inventory management or increased sales efficiency.

Days of sales outstanding (DSO) reflects the average number of days it takes for a company to collect its accounts receivable. A lower DSO indicates faster conversion of sales into cash, improving liquidity.

Central Garden & Pet Company A's DSO has also varied, showing an improvement in the most recent quarter compared to the same quarter in the previous year. This may indicate the company's ability to collect receivables more efficiently or improve credit policies.

Number of days of payables measures how long a company takes to pay its suppliers. A higher number of days of payables indicates that the company is taking longer to pay its bills, which can help preserve cash flow but may strain relationships with suppliers.

Central Garden & Pet Company A's number of days of payables has shown some fluctuations, with a decrease in the most recent quarter compared to the same quarter in the previous year. This may indicate tighter payment terms or better negotiation with suppliers.

Long-term

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
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
Total asset turnover 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 1.18 1.14 1.12

The fixed asset turnover ratio for Central Garden & Pet Company A has shown relatively stable performance over the periods analyzed, ranging from 8.24 to 11.02. This indicates that the company generates between 8.24 to 11.02 units of sales revenue for every unit of fixed assets owned. The consistency in this ratio suggests that the company is efficiently utilizing its fixed assets to generate sales.

In contrast, the total asset turnover ratio fluctuates between 0.96 and 1.18, indicating that the company generates between 0.96 to 1.18 units of sales revenue for every unit of total assets owned. The variability in this ratio may imply changes in the efficiency of the company's overall asset utilization.

Overall, both ratios suggest that Central Garden & Pet Company A is effectively employing its assets to generate revenues, with the fixed asset turnover indicating a consistent efficiency in utilizing fixed assets, while the total asset turnover shows some variation in overall asset utilization efficiency over the periods examined.