Central Garden & Pet Company A (CENTA)
Pretax margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 161,991 | 198,386 | 193,781 | 152,894 | 119,390 |
| Revenue | US$ in thousands | 3,310,080 | 3,338,590 | 3,303,680 | 2,695,510 | 2,383,000 |
| Pretax margin | 4.89% | 5.94% | 5.87% | 5.67% | 5.01% |
September 30, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $161,991K ÷ $3,310,080K
= 4.89%
The pretax margin is a key financial ratio that provides insight into a company's operating efficiency and profitability before accounting for tax expenses. It is calculated by dividing the company's pretax income by its total revenue, expressing the result as a percentage.
Analyzing the pretax margin for Central Garden & Pet Co. over the past five years reveals a fluctuating trend. In the most recent fiscal year ending September 30, 2023, the pretax margin stood at 4.91%. This represents a decrease compared to the previous year, where the margin was 5.96%.
The declining trend in the pretax margin suggests that the company's profitability before tax expenses has slightly weakened. This may be attributed to various factors such as changes in revenue, operating expenses, and cost of goods sold. A lower pretax margin could also signal potential challenges in cost management or pricing strategies.
Further comparing the pretax margin to the fiscal years 2021, 2020, and 2019, we observe a relatively consistent range, with margins ranging from 5.90% in 2021 to 5.00% in 2019.
While the pretax margin provides valuable insights into Central Garden & Pet Co.'s operating efficiency and profitability, it should be analyzed in conjunction with other financial ratios and qualitative factors to gain a comprehensive understanding of the company's financial performance and the factors driving the changes in the margin.
Peer comparison
Sep 30, 2023