Central Garden & Pet Company A (CENTA)
Cash conversion cycle
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 110.30 | 97.45 | 102.13 | 114.24 | 120.38 | 109.95 | 102.91 | 102.82 | 98.35 | 81.58 | 81.70 | 100.37 | 99.32 | 84.50 | 85.83 | 109.30 | 119.57 | 101.35 | 103.34 | 117.20 |
| Days of sales outstanding (DSO) | days | 40.83 | 36.71 | 55.06 | 63.25 | 36.35 | 41.19 | 54.60 | 66.42 | 37.00 | 42.57 | 56.65 | 77.56 | 42.48 | 53.05 | 71.75 | 69.15 | 40.73 | 45.97 | 61.58 | 72.51 |
| Number of days of payables | days | 24.68 | 22.19 | 23.41 | 26.62 | 22.82 | 25.28 | 28.11 | 34.41 | 28.50 | 29.23 | 30.91 | 41.61 | 37.49 | 39.45 | 36.02 | 39.49 | 39.68 | 32.45 | 30.60 | 35.71 |
| Cash conversion cycle | days | 126.45 | 111.97 | 133.78 | 150.87 | 133.91 | 125.86 | 129.40 | 134.83 | 106.85 | 94.92 | 107.44 | 136.32 | 104.32 | 98.10 | 121.56 | 138.96 | 120.62 | 114.87 | 134.33 | 154.00 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 110.30 + 40.83 – 24.68
= 126.45
Central Garden & Pet Company A's cash conversion cycle has shown varying trends over the past several quarters. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. The table shows fluctuations in the cash conversion cycle over the last five years.
In the most recent quarter, the company's cash conversion cycle stood at 126.45 days, representing an increase from the previous quarter. This indicates that Central Garden & Pet Company A took longer to convert its investment in inventory into cash from sales.
Looking at historical data, the cash conversion cycle has exhibited some volatility, with fluctuations in the range of 94.92 to 154.00 days over the past five years. This variability could be attributed to changes in the company's sales, inventory management, and payment practices.
Analyzing the trend, it can be observed that the cash conversion cycle has been relatively high in some quarters, potentially indicating inefficiencies in managing inventory, collections, or payables. On the other hand, lower values suggest improvements in working capital management and operational efficiency.
Overall, monitoring the cash conversion cycle is crucial for assessing the company's liquidity, operational efficiency, and working capital management. Further analysis and comparison with industry benchmarks can provide insights into Central Garden & Pet Company A's performance and areas where enhancements may be required.
Peer comparison
Dec 31, 2023