Central Garden & Pet Company A (CENTA)

Central Garden & Pet Company A's solvency ratios indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has improved slightly over the years, decreasing from 0.38 in 2021 to 0.33 in 2024, suggesting a lower dependency on debt in relation to its assets.

The debt-to-capital ratio also demonstrates a downward trend, indicating a decrease in the proportion of debt used to finance the company's capital structure over the years. Specifically, the ratio declined from 0.49 in 2021 to 0.43 in 2024.

The debt-to-equity ratio, which measures the extent of a company's leverage, has fluctuated but trended upward overall in recent years. This suggests that Central Garden & Pet Company A has been increasingly relying on debt financing relative to equity.

The financial leverage ratio, which reflects the company's total debt relative to its equity, shows a similar trend to the debt-to-equity ratio, indicating an increase in leverage over the years.

Overall, while the company's debt ratios have shown some fluctuations, Central Garden & Pet Company A's solvency ratios suggest a moderate level of financial risk, with a trend towards greater reliance on debt financing in recent years. Investors and analysts may want to monitor these ratios to assess the company's ability to manage its debt levels effectively.

---

Coverage ratios

Central Garden & Pet Company A's interest coverage ratio has shown a declining trend over the past five years. The ratio, which measures the company's ability to cover its interest expenses with its operating income, decreased from 4.47 in 2020 to 3.45 in 2024. This indicates that the company's ability to cover its interest payments with operating income has weakened over the years.

A lower interest coverage ratio may signal increased financial risk, as it suggests that the company may have difficulty meeting its interest obligations from its operating earnings. Investors and creditors may view a declining interest coverage ratio as a red flag, as it could indicate potential financial distress.

It is important for Central Garden & Pet Company A to closely monitor its interest coverage ratio and take steps to improve it if necessary, such as increasing profitability or reducing debt levels. Maintaining a healthy interest coverage ratio is crucial for financial stability and sustainability in the long term.