Central Garden & Pet Company A (CENTA)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 210,646 | 260,036 | 254,496 | 197,977 | 152,068 |
| Total assets | US$ in thousands | 3,378,650 | 3,282,000 | 3,116,680 | 2,339,360 | 2,025,020 |
| Operating ROA | 6.23% | 7.92% | 8.17% | 8.46% | 7.51% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $210,646K ÷ $3,378,650K
= 6.23%
Operating return on assets (operating ROA) measures a company's ability to generate operating income from its assets. Central Garden & Pet Co.'s operating ROA has shown a declining trend over the past five years, from 7.51% in 2019 to 6.23% in 2023. This indicates that the company's ability to generate operating income from its assets has decreased. The declining trend suggests that the company may be experiencing challenges in effectively utilizing its assets to generate operating income. It's essential for the company to address these challenges and improve its operating ROA to ensure efficient utilization of its assets for profitability.
Peer comparison
Sep 30, 2023