Central Garden & Pet Company A (CENTA)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,171,768 | 3,295,756 | 3,308,168 | 3,316,578 | 3,309,592 | 3,267,352 | 3,259,572 | 3,305,089 | 3,338,693 | 3,382,118 | 3,405,108 | 3,390,545 | 3,304,411 | 3,185,718 | 2,995,231 | 2,773,382 | 2,695,509 | 2,560,284 | 2,433,376 | 2,403,848 |
| Receivables | US$ in thousands | 326,220 | 507,524 | 578,237 | 370,996 | 332,890 | 492,850 | 564,874 | 329,129 | 376,787 | 505,896 | 619,629 | 343,659 | 385,384 | 494,432 | 636,466 | 322,806 | 391,773 | 503,288 | 460,985 | 268,229 |
| 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 |
September 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,171,768K ÷ $326,220K
= 9.72
Receivables turnover is a financial ratio that measures how efficiently a company is able to collect on its accounts receivable during a specific period. It is calculated by dividing net credit sales by the average accounts receivable balance for the period. A higher receivables turnover ratio indicates that the company is collecting cash from its customers more quickly.
Analyzing Central Garden & Pet Company A's receivables turnover over the past several quarters, we can see fluctuation in the ratio. The ratio has ranged from a low of 4.71 to a high of 10.04 across the last 20 quarters.
The fluctuation in the receivables turnover ratio could be influenced by various factors such as changes in the company's credit policy, customer payment behavior, and overall economic conditions. A decrease in the ratio may indicate that the company is taking longer to collect payments from its customers, which could potentially lead to liquidity issues. Conversely, an increasing ratio suggests that the company is effectively managing its accounts receivable and collecting cash more swiftly.
For Central Garden & Pet Company A, the average receivables turnover ratio over the past few quarters seems to be around 7 to 9, indicating that the company is efficiently managing its accounts receivable. It is essential for the company to monitor this ratio regularly and take appropriate actions to maintain or improve its receivables turnover to ensure healthy cash flow and working capital management.
Peer comparison
Sep 30, 2024