Central Garden & Pet Company A (CENTA)
Debt-to-equity 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-equity ratio | 0.76 | 0.82 | 0.89 | 0.97 | 0.64 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,189,810K ÷ $1,555,650K
= 0.76
Central Garden & Pet Company A's debt-to-equity ratio has shown a fluctuating trend over the past five years. The ratio decreased from 0.97 in 2021 to 0.64 in 2020, indicating a reduction in reliance on debt financing relative to equity. However, this trend reversed in the following years, as the ratio increased to 0.89 in 2022, 0.82 in 2023, and further to 0.76 in 2024.
The debt-to-equity ratio of Central Garden & Pet Company A, though fluctuating, remains above 0.5 in all years, signifying a higher proportion of debt compared to equity in financing the company's operations and investments. This indicates a moderate level of financial leverage, which may expose the company to higher financial risk due to its reliance on debt to fund growth and operations.
It is important for investors and stakeholders to monitor changes in the debt-to-equity ratio over time to assess the company's capital structure and financial health. A consistently increasing ratio may raise concerns about the company's ability to manage its debt obligations and sustain profitability, while a decreasing ratio could indicate a healthier balance between debt and equity financing.
Peer comparison
Sep 30, 2024