Central Garden & Pet Company A (CENTA)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 198,622 | 219,016 | 256,639 | 252,378 | 196,910 |
| Long-term debt | US$ in thousands | 1,189,810 | 1,187,960 | 1,186,240 | 1,184,680 | 693,956 |
| Total stockholders’ equity | US$ in thousands | 1,555,650 | 1,451,350 | 1,333,710 | 1,222,250 | 1,076,800 |
| Return on total capital | 7.23% | 8.30% | 10.18% | 10.49% | 11.12% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $198,622K ÷ ($1,189,810K + $1,555,650K)
= 7.23%
Central Garden & Pet Company A's return on total capital has exhibited a declining trend over the past five years, starting at 11.12% in 2020 and decreasing to 7.23% in 2024. This indicates that the company's ability to generate profits from its total capital employed has weakened over time.
The decreasing trend in the return on total capital could be a cause for concern, as it suggests that the company may not be efficiently utilizing its capital to generate returns for its investors. This could impact the company's profitability and overall financial performance.
It is important for Central Garden & Pet Company A to closely monitor and address the factors contributing to the decline in return on total capital to improve its financial efficiency and profitability in the future.
Peer comparison
Sep 30, 2024