Central Garden & Pet Company A (CENTA)
Working capital 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 |
| Total current assets | US$ in thousands | 1,886,810 | 1,910,170 | 1,850,620 | 1,714,060 | 1,707,120 | 1,741,680 | 1,653,880 | 1,512,620 | 1,553,850 | 1,633,240 | 1,623,890 | 1,531,720 | 1,543,660 | 1,682,750 | 1,407,190 | 1,547,710 | 1,525,280 | 1,467,290 | 1,358,930 | 1,321,080 |
| Total current liabilities | US$ in thousands | 515,384 | 521,445 | 556,490 | 494,171 | 457,987 | 496,387 | 475,949 | 423,039 | 465,892 | 516,187 | 570,749 | 513,350 | 522,319 | 511,007 | 536,763 | 441,212 | 440,262 | 385,250 | 357,100 | 343,860 |
| 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 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,171,768K ÷ ($1,886,810K – $515,384K)
= 2.31
The working capital turnover ratio of Central Garden & Pet Company A has shown some variability over the past few quarters. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
From December 2019 to December 2021, the working capital turnover ratio has been on an upward trend, indicating improving efficiency in utilizing working capital to generate sales. However, from March 2022 to September 2024, the ratio fluctuated within a range of 2.31 to 3.33, showing some variability in the company's working capital management efficiency.
The highest working capital turnover ratio was observed in December 2021 at 3.33, which suggests that for every dollar of working capital invested, the company generated $3.33 in sales revenue. On the other hand, the lowest ratio of 2.31 was recorded in September 2024, indicating a slight decline in the efficiency of working capital management.
Overall, Central Garden & Pet Company A has shown a reasonably stable working capital turnover ratio over the past few quarters, indicating that the company has been effectively utilizing its working capital to support its operations and generate sales revenue. Monitoring this ratio over time can provide insights into the company's liquidity and operational efficiency.
Peer comparison
Sep 30, 2024