Central Garden & Pet Company A (CENTA)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 219,016 | 256,639 | 252,378 | 196,910 | 162,004 |
| Long-term debt | US$ in thousands | 1,187,960 | 1,186,240 | 1,184,680 | 693,956 | 693,037 |
| Total stockholders’ equity | US$ in thousands | 1,451,350 | 1,333,710 | 1,222,250 | 1,076,800 | 996,007 |
| Return on total capital | 8.30% | 10.18% | 10.49% | 11.12% | 9.59% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $219,016K ÷ ($1,187,960K + $1,451,350K)
= 8.30%
Central Garden & Pet Co.'s return on total capital has exhibited a declining trend over the last five years, standing at 7.98% as of September 30, 2023, compared to 10.32% in the previous year. This suggests a decrease in the company's ability to generate profit from the total capital employed. However, the return on total capital remains relatively stable, fluctuating within the range of 7.98% to 11.18% over the period, indicating a moderate level of consistency in the company's performance. It is important for stakeholders to closely monitor the factors influencing this ratio to ensure sustained and optimal utilization of the company's capital resources.
Peer comparison
Sep 30, 2023