Central Garden & Pet Company A (CENTA)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,200,460 | 3,310,100 | 3,338,590 | 3,303,680 | 2,695,510 |
| Receivables | US$ in thousands | 326,220 | 332,890 | 376,787 | 385,384 | 391,773 |
| Receivables turnover | 9.81 | 9.94 | 8.86 | 8.57 | 6.88 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,200,460K ÷ $326,220K
= 9.81
The receivables turnover ratio measures how efficiently Central Garden & Pet Company A collects payments from its customers. A high receivables turnover ratio indicates that the company is collecting payments quickly, while a low ratio suggests that collections are taking longer.
From the data provided, we can observe an increasing trend in the receivables turnover ratio over the past five years. In Sep 30, 2020, the ratio was 6.88, and it has consistently improved each year, reaching 9.81 in Sep 30, 2024.
This improvement suggests that Central Garden & Pet Company A has been more efficient in collecting payments from its customers. It indicates that the company has been managing its accounts receivable effectively, possibly through better credit policies, stricter collection practices, or improved customer relationships.
Overall, the increasing trend in the receivables turnover ratio reflects positively on Central Garden & Pet Company A's financial management and indicates a healthy liquidity position. It also implies a reduced risk of bad debts and improved cash flow generation from sales.
Peer comparison
Sep 30, 2024