Central Garden & Pet Company A (CENTA)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 185,387 | 210,646 | 260,036 | 254,496 | 197,977 |
| Total assets | US$ in thousands | 3,553,440 | 3,378,650 | 3,282,000 | 3,116,680 | 2,339,360 |
| Operating ROA | 5.22% | 6.23% | 7.92% | 8.17% | 8.46% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $185,387K ÷ $3,553,440K
= 5.22%
The operating return on assets (ROA) of Central Garden & Pet Company A has exhibited a declining trend over the past five years, decreasing from 8.46% in 2020 to 5.22% in 2024. This suggests that the company's ability to generate operating profit from its assets has weakened over the period under review. The decreasing trend in operating ROA could be attributed to various factors such as inefficiencies in asset utilization, rising operating expenses, or a decline in operating income.
A lower operating ROA indicates that Central Garden & Pet Company A is generating less operating profit from its assets in recent years, which may raise concerns about the company's operational efficiency and profitability. Investors and stakeholders may need to closely monitor the company's strategies to improve asset utilization and operational performance to enhance its profitability in the future.
Peer comparison
Sep 30, 2024