Central Garden & Pet Company A (CENTA)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,187,960 | 1,186,240 | 1,184,680 | 693,956 | 693,037 |
| Total assets | US$ in thousands | 3,378,650 | 3,282,000 | 3,116,680 | 2,339,360 | 2,025,020 |
| Debt-to-assets ratio | 0.35 | 0.36 | 0.38 | 0.30 | 0.34 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,187,960K ÷ $3,378,650K
= 0.35
The debt-to-assets ratio of Central Garden & Pet Co. has been fluctuating over the past five years. In 2023, the ratio stands at 0.35, which indicates that 35% of the company's assets are financed by debt. This level of debt financing has decreased slightly compared to the previous year, when the ratio was 0.36. It is also lower than the ratio in 2021, which was 0.38.
The company's debt-to-assets ratio was at its lowest in 2020, at 0.30, before increasing to 0.34 in 2019. This suggests that Central Garden & Pet Co. has been managing its debt in relation to its assets fairly consistently over the years, with some fluctuations.
Overall, the decreasing trend in the ratio from 2021 to 2023 indicates an improvement in the company's ability to finance its assets through equity rather than debt, which may signify a stronger financial position and lower risk level. However, it's essential to consider additional financial metrics and market conditions to gain a comprehensive understanding of the company's financial health.
Peer comparison
Sep 30, 2023