Central Garden & Pet Company A (CENTA)
Return on assets (ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 125,643 | 152,152 | 151,746 | 120,676 | 92,786 |
| Total assets | US$ in thousands | 3,378,650 | 3,282,000 | 3,116,680 | 2,339,360 | 2,025,020 |
| ROA | 3.72% | 4.64% | 4.87% | 5.16% | 4.58% |
September 30, 2023 calculation
ROA = Net income ÷ Total assets
= $125,643K ÷ $3,378,650K
= 3.72%
Central Garden & Pet Co.'s return on assets (ROA) has shown a gradual decline over the five-year period, decreasing from 5.16% in 2020 to 3.72% in 2023. This indicates a diminishing ability of the company to generate earnings from its assets. Factors contributing to this trend may include increased asset base without a proportional increase in earnings, inefficiencies in asset utilization, or declining profitability. Appropriate measures to reverse this decline in ROA may involve enhancing operational efficiency, optimizing asset utilization, and focusing on strategies to improve overall profitability. It is essential for the company to closely monitor and address the factors impacting ROA in order to sustain and enhance its financial performance.
Peer comparison
Sep 30, 2023