Central Garden & Pet Company A (CENTA)

Return on assets (ROA)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Net income	US$ in thousands	107,983	125,643	152,152	151,746	120,676
Total assets	US$ in thousands	3,553,440	3,378,650	3,282,000	3,116,680	2,339,360
ROA		3.04%	3.72%	4.64%	4.87%	5.16%

September 30, 2024 calculation

ROA = Net income ÷ Total assets
= $107,983K ÷ $3,553,440K
= 3.04%

Central Garden & Pet Company A's return on assets (ROA) has shown a declining trend over the past five years, from 5.16% in 2020 to 3.04% in 2024. This indicates that the company's ability to generate profits from its assets has weakened over time. The decreasing ROA could be a cause for concern as it suggests a potential efficiency or profitability issue within the company. Management should closely monitor and analyze the factors contributing to this decline in ROA to identify areas for improvement and implement strategies to enhance asset utilization and profitability.

Peer comparison

Sep 30, 2024

Company name

Symbol

ROA

Central Garden & Pet Company A

CENTA

3.04%

Central Garden & Pet Company