Central Garden & Pet Company A (CENTA)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,310,080 | 3,338,590 | 3,303,680 | 2,695,510 | 2,383,000 |
| Receivables | US$ in thousands | 332,890 | 376,787 | 385,384 | 391,773 | 300,135 |
| Receivables turnover | 9.94 | 8.86 | 8.57 | 6.88 | 7.94 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,310,080K ÷ $332,890K
= 9.94
The receivables turnover for Central Garden & Pet Co. has shown a positive trend over the past five years. The ratio has increased from 7.94 in 2019 to 9.94 in 2023, indicating that the company is collecting its accounts receivable more efficiently. This improvement suggests that the company has been able to collect outstanding customer payments at a faster rate in recent years. A higher receivables turnover ratio generally indicates a more effective management of credit and collection policies, which can lead to improved cash flow and reduced risk of bad debts. Overall, the increasing trend in receivables turnover reflects positively on the company's effectiveness in managing its accounts receivable.
Peer comparison
Sep 30, 2023