Central Garden & Pet Company A (CENTA)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.43 | 0.45 | 0.47 | 0.49 | 0.39 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,189,810K ÷ ($1,189,810K + $1,555,650K)
= 0.43
The debt-to-capital ratio of Central Garden & Pet Company A has shown a decreasing trend over the past five years, indicating a gradual reduction in the proportion of debt relative to total capital. In the most recent fiscal year ending on September 30, 2024, the debt-to-capital ratio stood at 0.43, representing a decline from the previous year's ratio of 0.45. This suggests that the company has been successful in managing its debt levels relative to its total capital base.
Furthermore, compared to the ratio of 0.39 in the fiscal year ending September 30, 2020, the latest ratio of 0.43 indicates an increase in the utilization of capital from debt sources. Despite this uptick, the current ratio remains below the levels seen in fiscal years 2021 and 2022, where the company had higher debt-to-capital ratios of 0.49 and 0.47, respectively.
The gradual decrease in the debt-to-capital ratio reflects a potentially improving financial position for Central Garden & Pet Company A, as it appears to be relying less on debt financing relative to its total capital structure. This trend may indicate a conservative approach to capital structure management, which could enhance the company's financial stability and creditworthiness over time.
Peer comparison
Sep 30, 2024