Central Garden & Pet Company A (CENTA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.66 | 3.66 | 3.33 | 3.47 | 3.73 | 3.51 | 3.47 | 3.58 | 3.34 | 3.16 | 2.85 | 2.98 | 2.96 | 3.29 | 2.62 | 3.51 | 3.46 | 3.81 | 3.81 | 3.84 |
| Quick ratio | 2.10 | 2.07 | 1.58 | 1.44 | 1.79 | 1.66 | 1.31 | 0.99 | 1.19 | 1.36 | 1.18 | 1.25 | 1.55 | 1.98 | 1.26 | 2.11 | 2.37 | 2.59 | 7.37 | 2.08 |
| Cash ratio | 1.46 | 1.09 | 0.54 | 0.69 | 1.07 | 0.67 | 0.13 | 0.21 | 0.38 | 0.38 | 0.09 | 0.58 | 0.82 | 1.01 | 0.07 | 1.38 | 1.48 | 1.29 | 6.08 | 1.30 |
Central Garden & Pet Company A has exhibited strong liquidity ratios over the periods analyzed. The current ratio, which indicates the company's ability to cover short-term liabilities with short-term assets, has consistently been above 3, reflecting a healthy liquidity position.
The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, has also been robust, indicating the company's ability to meet its short-term obligations even without relying on selling inventory.
Furthermore, the cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has generally shown an upward trend, although with some fluctuations. This indicates the company's ability to effectively use its cash reserves to meet its short-term obligations.
Overall, Central Garden & Pet Company A's liquidity ratios suggest that the company has a strong financial position and is well-equipped to meet its short-term financial commitments efficiently.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 102.38 | 126.36 | 143.16 | 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 |
The cash conversion cycle of Central Garden & Pet Company A has shown fluctuations over the periods analyzed. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory into cash receipts from customers.
Observing the trend in the cash conversion cycle, we see that it peaked at 150.87 days in March 2023 but has since shown a downward trend with occasional fluctuations. A shorter cash conversion cycle indicates that the company is efficiently managing its working capital and converting inventory into sales and cash quickly.
On average, the cash conversion cycle for Central Garden & Pet Company A over the periods analyzed stands at approximately 120 days. This suggests that the company takes around 120 days to convert its inventory investments into cash receipts from customers.
It is important to note that a longer cash conversion cycle may signify inefficiencies in inventory management, slow collection of receivables, or challenges in the sales cycle. Conversely, a shorter cash conversion cycle can indicate effective working capital management, strong sales strategies, and efficient operations.
In conclusion, Central Garden & Pet Company A's cash conversion cycle has exhibited fluctuations but generally indicates a moderate efficiency in converting inventory investments into cash receipts from customers. Monitoring this metric over time can help assess the company's working capital management and operational effectiveness.