Central Garden & Pet Company A (CENTA)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,886,810 | 1,707,120 | 1,553,850 | 1,543,660 | 1,525,280 |
| Total current liabilities | US$ in thousands | 515,384 | 457,987 | 465,892 | 522,319 | 440,262 |
| Current ratio | 3.66 | 3.73 | 3.34 | 2.96 | 3.46 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,886,810K ÷ $515,384K
= 3.66
Central Garden & Pet Company A's current ratio has exhibited fluctuations over the past five years. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio generally indicates a stronger liquidity position.
In the most recent fiscal year ending in September 2024, the current ratio was 3.66, a slight decrease from the previous year's ratio of 3.73. Despite the slight decline, the current ratio remains at a healthy level, indicating that Central Garden & Pet Company A has sufficient current assets to cover its current liabilities.
Comparing the current ratio to previous years, we observe a variation in performance. The current ratio was highest in 2023 at 3.73 and lowest in 2021 at 2.96. The improvement in 2022 and 2024 suggests enhanced liquidity management and a better ability to meet short-term obligations.
Overall, Central Garden & Pet Company A's current ratio has generally been above 3.0 over the past five years, indicating a strong liquidity position and the company's ability to cover its short-term liabilities with ease. A consistent trend of maintaining a current ratio above 3.0 is a positive indicator of financial health and effective working capital management.
Peer comparison
Sep 30, 2024