Central Garden & Pet Company A (CENTA)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 229,679 | 219,016 | 217,686 | 206,290 | 233,961 | 256,641 | 253,133 | 251,493 | 250,303 | 252,378 | 269,730 | 259,018 | 220,383 | 196,910 | 185,218 | 155,338 | 153,810 | 162,004 | 163,997 | 156,494 |
| Long-term debt | US$ in thousands | 1,189,090 | 1,187,960 | 1,187,500 | 1,212,050 | 1,186,650 | 1,186,240 | 1,185,840 | 1,185,460 | 1,185,060 | 1,184,680 | 1,183,590 | 978,887 | 788,921 | 693,956 | 693,915 | 693,622 | 693,329 | 693,037 | 692,948 | 692,646 |
| 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 |
| Return on total capital | 8.70% | 8.30% | 8.27% | 7.99% | 9.32% | 10.18% | 9.98% | 10.15% | 10.37% | 10.49% | 11.13% | 12.11% | 11.75% | 11.12% | 10.56% | 9.21% | 9.23% | 9.59% | 9.50% | 9.25% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $229,679K ÷ ($1,189,090K + $1,451,890K)
= 8.70%
Central Garden & Pet Company A's return on total capital has shown some fluctuations over the periods analyzed. The return on total capital ranged from 7.99% to 12.11% during the last five years. The company's return on total capital was relatively lower in the recent quarters compared to previous periods, with a slight downward trend from 10.15% in March 2022 to 8.70% in December 2023. This trend may indicate that the company's profitability and efficiency in generating returns from its invested capital have declined in the most recent quarters. It would be essential for stakeholders to closely monitor the company's capital allocation and operational performance to ensure sustainable and improved returns in the future.
Peer comparison
Dec 31, 2023