Central Garden & Pet Company A (CENTA)
Debt-to-equity 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-equity ratio | 0.82 | 0.89 | 0.97 | 0.64 | 0.70 |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,187,960K ÷ $1,451,350K
= 0.82
The debt-to-equity ratio of Central Garden & Pet Co. has fluctuated over the past five fiscal years. In 2023, the ratio decreased to 0.82 from 0.89 in 2022, indicating a lower level of financial leverage. This could signify a more conservative capital structure, with less reliance on debt financing relative to equity. However, it's important to note that the ratio has been higher in previous years, such as 0.97 in 2021. This suggests that the company had higher financial leverage in that year, potentially increasing the financial risk associated with its operations. Overall, the trend in the debt-to-equity ratio reflects varying degrees of leverage in the company's capital structure over the period analyzed.
Peer comparison
Sep 30, 2023