Central Garden & Pet Company A (CENTA)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,451,350 | 1,333,710 | 1,222,250 | 1,076,800 | 996,007 |
| ROE | 8.66% | 11.41% | 12.42% | 11.21% | 9.32% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $125,643K ÷ $1,451,350K
= 8.66%
Central Garden & Pet Co.'s return on equity (ROE) has fluctuated over the past five years. In 2023, the ROE stood at 8.66%, a decrease from the previous year's 11.41%. This downward trend indicates a decline in the company's ability to generate profits from its shareholders' equity. However, it's essential to note that in 2023, the ROE was still higher than the 2019 figure of 9.32%, suggesting a reasonably stable performance in comparison to the earlier period. The 2021 ROE of 12.42% was the highest in the five-year period, indicating a peak in the company's efficiency in utilizing equity to generate profits. Overall, while the recent decrease in ROE warrants attention, the company has historically demonstrated a moderate ability to deliver returns on equity.
Peer comparison
Sep 30, 2023