Central Garden & Pet Company A (CENTA)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.45 | 0.45 | 0.45 | 0.47 | 0.47 | 0.47 | 0.47 | 0.48 | 0.49 | 0.49 | 0.49 | 0.46 | 0.42 | 0.39 | 0.40 | 0.41 | 0.42 | 0.41 | 0.40 | 0.41 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,189,090K ÷ ($1,189,090K + $1,451,890K)
= 0.45
The debt-to-capital ratio for Central Garden & Pet Company A has been relatively stable over the past five years, fluctuating between 0.39 and 0.49. This ratio measures the proportion of debt in the company's capital structure, with a lower ratio indicating a lower level of debt relative to total capital and a higher ratio indicating a higher level of debt.
In recent quarters, the company's debt-to-capital ratio has ranged between 0.45 and 0.49, suggesting that debt makes up around 45% to 49% of the company's total capital during this period. This indicates that Central Garden & Pet Company A relies moderately on debt financing to fund its operations and growth initiatives.
While a higher debt-to-capital ratio can indicate higher financial risk due to increased leverage, a consistent ratio within a certain range could be a sign of financial stability. It is important for investors and analysts to consider other factors such as the company's profitability, cash flow, and overall financial health when assessing the implications of the debt-to-capital ratio.
Peer comparison
Dec 31, 2023