Central Garden & Pet Company A (CENTA)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,555,650 | 1,451,350 | 1,333,710 | 1,222,250 | 1,076,800 |
| ROE | 6.94% | 8.66% | 11.41% | 12.42% | 11.21% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $107,983K ÷ $1,555,650K
= 6.94%
Central Garden & Pet Company A's return on equity (ROE) has shown a declining trend over the past five years. In 2020, the ROE was at 11.21%, which then increased to 12.42% in 2021. However, in 2022, there was a noticeable decrease to 11.41%, followed by a further decline to 8.66% in 2023, and finally down to 6.94% in 2024.
This downward trend in ROE indicates a decrease in the company's profitability in relation to shareholders' equity over the years. A declining ROE could be a result of factors such as increasing expenses, declining net income, or inefficient utilization of equity.
Investors and stakeholders may be concerned about the diminishing ROE as it signals a decreasing ability of the company to generate profit from the shareholders' investments. It is crucial for the company to analyze the factors contributing to this trend and take necessary measures to improve profitability and efficiency in utilizing equity to enhance shareholder value.
Peer comparison
Sep 30, 2024