Central Garden & Pet Company A (CENTA)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 122.59 | 129.46 | 145.92 | 107.22 | 84.50 |
| Days of sales outstanding (DSO) | days | 37.20 | 36.71 | 41.19 | 42.58 | 53.05 |
| Number of days of payables | days | 34.39 | 29.48 | 33.55 | 38.42 | 39.45 |
| Cash conversion cycle | days | 125.41 | 136.68 | 153.56 | 111.38 | 98.10 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 122.59 + 37.20 – 34.39
= 125.41
The cash conversion cycle of Central Garden & Pet Company A has fluctuated over the past five years. In the most recent period ending on September 30, 2024, the company's cash conversion cycle was 125.41 days, indicating a slight improvement compared to the previous year.
Looking back, the trend shows that in the fiscal year ending September 30, 2023, the cash conversion cycle was higher at 136.68 days. The company experienced a longer cash conversion cycle in the fiscal year ending September 30, 2022, at 153.56 days, reflecting a potential inefficiency in managing its cash flow and working capital.
In contrast, the cash conversion cycle was shorter in the fiscal years ending September 30, 2021 and September 30, 2020, at 111.38 days and 98.10 days, respectively. This suggests that the company was more effective in managing its cash flow and working capital during those periods.
Overall, the trend indicates some variability in Central Garden & Pet Company A's cash conversion cycle in recent years. It is important for the company to focus on optimizing its cash conversion cycle to enhance its liquidity and operational efficiency.
Peer comparison
Sep 30, 2024