Central Garden & Pet Company A (CENTA)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.49% | 28.60% | 29.72% | 29.39% | 29.55% |
| Operating profit margin | 5.79% | 6.36% | 7.79% | 7.70% | 7.34% |
| Pretax margin | 4.41% | 4.89% | 5.94% | 5.87% | 5.67% |
| Net profit margin | 3.37% | 3.80% | 4.56% | 4.59% | 4.48% |
Central Garden & Pet Company A's profitability ratios over the past five years show a consistent trend. The gross profit margin has varied slightly between 28.60% and 29.72%, indicating the company's ability to efficiently manage production costs. However, the operating profit margin, pretax margin, and net profit margin have shown a gradual decline over the same period from 7.79% to 5.79%, 5.94% to 4.41%, and 4.56% to 3.37%, respectively. This suggests that the company may be facing challenges in controlling operating expenses and generating profits after accounting for taxes and other expenses. Overall, Central Garden & Pet Company A's profitability has shown some weaknesses in recent years, highlighting the need for improved cost management and revenue generation strategies to enhance overall profitability.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.22% | 6.23% | 7.92% | 8.17% | 8.46% |
| Return on assets (ROA) | 3.04% | 3.72% | 4.64% | 4.87% | 5.16% |
| Return on total capital | 7.23% | 8.30% | 10.18% | 10.49% | 11.12% |
| Return on equity (ROE) | 6.94% | 8.66% | 11.41% | 12.42% | 11.21% |
Central Garden & Pet Company A's profitability ratios have shown a mixed trend over the past five years.
The Operating return on assets (Operating ROA) has been declining gradually from 8.46% in 2020 to 5.22% in 2024. This indicates that the company's operating efficiency in generating profits from its assets has slightly decreased over the years.
Return on assets (ROA) also shows a similar declining trend, starting at 5.16% in 2020 and reaching 3.04% in 2024. This suggests that the overall profitability of the company in relation to its total assets has weakened over the period.
Return on total capital has decreased consistently from 11.12% in 2020 to 7.23% in 2024. This ratio reveals how efficiently the company is using all of its capital to generate profits, and the decreasing trend indicates a decrease in profitability efficiency.
Return on equity (ROE) has fluctuated over the years, with a peak of 12.42% in 2021 and a low of 6.94% in 2024. ROE reflects the return on shareholder equity, and the fluctuating trend suggests inconsistent profitability in relation to the shareholders' investment.
Overall, Central Garden & Pet Company A's profitability ratios reflect a downward or inconsistent trend over the five-year period, indicating challenges in maintaining or improving profitability levels relative to its assets, capital, and equity.