Central Garden & Pet Company A (CENTA)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,553,440 | 3,378,650 | 3,282,000 | 3,116,680 | 2,339,360 |
| Total stockholders’ equity | US$ in thousands | 1,555,650 | 1,451,350 | 1,333,710 | 1,222,250 | 1,076,800 |
| Financial leverage ratio | 2.28 | 2.33 | 2.46 | 2.55 | 2.17 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,553,440K ÷ $1,555,650K
= 2.28
The financial leverage ratio of Central Garden & Pet Company A has shown a declining trend over the past five years, decreasing from 2.55 in 2021 to 2.28 in 2024. This indicates that the company has been relying less on debt to finance its operations and investments, which could be viewed positively as it reduces the financial risk associated with high levels of debt. However, it's worth noting that the ratio increased in 2022 before resuming its downward trend.
A financial leverage ratio of 2.28 in 2024 suggests that for every $1 of equity, the company has $2.28 of debt. This level of leverage indicates a moderate reliance on debt financing, which could have implications for the company's solvency and ability to meet its financial obligations in the long term.
Overall, the decreasing trend in the financial leverage ratio of Central Garden & Pet Company A indicates a more conservative approach to financing its operations, which may enhance the company's financial stability and resilience in the face of economic uncertainties. However, further analysis of the company's overall financial health and performance is recommended to gain a more comprehensive understanding of its leverage position.
Peer comparison
Sep 30, 2024