Central Garden & Pet Company A (CENTA)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 134,506 | 125,643 | 120,818 | 113,112 | 134,710 | 152,152 | 151,135 | 151,901 | 155,142 | 151,746 | 168,342 | 160,956 | 130,706 | 120,676 | 109,527 | 86,879 | 86,566 | 92,786 | 100,914 | 96,307 |
| Total stockholders’ equity | US$ in thousands | 1,451,890 | 1,451,350 | 1,445,530 | 1,371,090 | 1,322,850 | 1,333,710 | 1,351,020 | 1,293,090 | 1,228,230 | 1,222,250 | 1,240,360 | 1,160,570 | 1,086,590 | 1,076,800 | 1,059,420 | 993,013 | 973,124 | 996,007 | 1,033,640 | 998,749 |
| ROE | 9.26% | 8.66% | 8.36% | 8.25% | 10.18% | 11.41% | 11.19% | 11.75% | 12.63% | 12.42% | 13.57% | 13.87% | 12.03% | 11.21% | 10.34% | 8.75% | 8.90% | 9.32% | 9.76% | 9.64% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $134,506K ÷ $1,451,890K
= 9.26%
Central Garden & Pet Company A has shown a fluctuating trend in its return on equity (ROE) over the past five years. The ROE ranged from a low of 8.25% in March 2023 to a high of 13.87% in June 2021. Overall, the company's ROE has generally been in the single-digit to low double-digit range.
The downward trend in ROE from 2019 to early 2023 may indicate challenges in efficiently utilizing shareholders' equity to generate profits. However, there was a slight improvement in ROE in the latest quarter, reaching 9.26% in December 2023.
Management should further investigate the factors influencing the ROE, such as profitability, asset management efficiency, and capital structure, to identify potential areas for improvement. Monitoring the trend of ROE over time can provide valuable insights into the company's performance and help guide strategic decision-making.
Peer comparison
Dec 31, 2023