Central Garden & Pet Company A (CENTA)
Debt-to-equity 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-equity ratio | 0.82 | 0.82 | 0.82 | 0.88 | 0.90 | 0.89 | 0.88 | 0.92 | 0.96 | 0.97 | 0.95 | 0.84 | 0.73 | 0.64 | 0.65 | 0.70 | 0.71 | 0.70 | 0.67 | 0.69 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,189,090K ÷ $1,451,890K
= 0.82
The debt-to-equity ratio of Central Garden & Pet Company A has shown some fluctuation over the past few years, ranging from 0.64 to 0.97. The ratio indicates the proportion of debt used to finance the company's assets relative to shareholders' equity. A higher ratio suggests that the company is more leveraged, relying more on debt financing than equity.
From the data provided, the trend indicates that the company's debt-to-equity ratio has generally been decreasing from 2019 to 2023, with some fluctuations. This could imply that Central Garden & Pet Company A has been reducing its reliance on debt to finance its operations and investments over this period.
However, the ratio did experience a slight increase in the most recent quarter to 0.82, compared to 0.70 in the same period last year. This uptick may indicate a recent shift towards increased debt financing or a decrease in equity, which could be a strategic decision by the company to fund growth opportunities, acquisitions, or manage working capital effectively.
Overall, further analysis and consideration of the company's financial strategy, industry factors, and overall financial health would be needed to fully interpret the implications of the changes in Central Garden & Pet Company A's debt-to-equity ratio over the specified timeframe.
Peer comparison
Dec 31, 2023