Central Garden & Pet Company A (CENTA)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,451,350 | 1,333,710 | 1,222,250 | 1,076,800 | 996,007 |
| Debt-to-capital ratio | 0.45 | 0.47 | 0.49 | 0.39 | 0.41 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,187,960K ÷ ($1,187,960K + $1,451,350K)
= 0.45
The debt-to-capital ratio of Central Garden & Pet Co. has exhibited some fluctuation over the past five years. The ratio decreased from 0.41 in 2019 to 0.39 in 2020, indicating a reduction in the proportion of debt relative to the total capital. However, in subsequent years, the ratio increased, reaching 0.49 in 2021 before declining slightly to 0.47 in 2022 and further to 0.45 in 2023.
This trend suggests that the company's reliance on debt as a source of capital has varied over the years. A higher debt-to-capital ratio may indicate a greater financial risk, as it signifies a larger proportion of debt in the company's capital structure. Conversely, a lower ratio reflects a relatively lower level of debt compared to capital. It would be important to consider the reasons behind these fluctuations, as well as the company's overall financial strategy and performance, in order to fully assess the implications of these changes in the debt-to-capital ratio.
Peer comparison
Sep 30, 2023