Central Garden & Pet Company A (CENTA)
Financial leverage ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,378,650 | 3,282,000 | 3,116,680 | 2,339,360 | 2,025,020 |
| Total stockholders’ equity | US$ in thousands | 1,451,350 | 1,333,710 | 1,222,250 | 1,076,800 | 996,007 |
| Financial leverage ratio | 2.33 | 2.46 | 2.55 | 2.17 | 2.03 |
September 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,378,650K ÷ $1,451,350K
= 2.33
The financial leverage ratio of Central Garden & Pet Co. has exhibited fluctuations over the past five years. The ratio, which indicates the degree of financial leverage used by the company, decreased from 2.55 in 2021 to 2.33 in 2023. This downward trend suggests a decrease in the company's reliance on debt to finance its operations and assets. However, it is important to note that the ratio remains relatively high, indicating a substantial level of financial leverage. This may pose risks associated with the company's ability to meet its financial obligations, especially in economic downturns or periods of high interest rates. Overall, the company's financial leverage ratio reflects a varying degree of leverage utilized over the years, which warrants careful monitoring of its capital structure and financial risk management.
Peer comparison
Sep 30, 2023