Central Garden & Pet Company A (CENTA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 4.69 | 4.84 | 4.52 |
| Quick ratio | 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 | 2.86 | 3.02 | 8.27 |
| Cash ratio | 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 | 1.79 | 1.60 | 6.75 |
Central Garden & Pet Company A's liquidity ratios have shown fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has generally been above 3, indicating a strong liquidity position. However, there was a slight decline in the current ratio in the most recent quarter compared to previous quarters.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also exhibited variability but has generally remained above 1. This suggests that the company can meet its short-term liabilities without relying heavily on inventory.
The cash ratio, which provides the most conservative estimate of liquidity by considering only cash and cash equivalents, has shown significant fluctuations over the periods. While the ratio has generally been above 1, indicating sufficient cash to cover short-term obligations, there have been instances of sharp declines, particularly in the most recent quarter.
Overall, Central Garden & Pet Company A maintains a solid liquidity position based on its current and quick ratios, although monitoring the cash ratio for stability is advisable due to its volatility.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle, a measure of how efficiently a company manages its working capital, provides insight into Central Garden & Pet Company A's operational efficiency over time.
From the data provided, we observe fluctuations in the cash conversion cycle, indicating variations in the company's ability to convert investments in raw materials into cash received from sales.
The company's cash conversion cycle ranged from a low of 94.92 days in September 2021 to a high of 154.00 days in December 2019. A lower cash conversion cycle suggests that the company is able to generate cash quickly from its sales and efficiently manage its working capital. Conversely, a higher cash conversion cycle may signify delays in collecting receivables or managing inventory effectively.
Overall, an analysis of Central Garden & Pet Company A's cash conversion cycle suggests that the company has experienced fluctuations in its operational efficiency over the periods covered by the data provided. It would be essential for the company to analyze the underlying factors contributing to these fluctuations and implement strategies to better manage its working capital in order to improve its overall financial performance.