Central Garden & Pet Company A (CENTA)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,422,330 | 3,378,650 | 3,419,950 | 3,350,800 | 3,229,070 | 3,282,000 | 3,345,930 | 3,349,260 | 3,118,040 | 3,116,680 | 3,123,500 | 2,847,100 | 2,446,100 | 2,339,360 | 2,263,970 | 2,167,410 | 2,135,160 | 2,025,020 | 2,064,920 | 2,046,140 |
| 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 |
| Financial leverage ratio | 2.36 | 2.33 | 2.37 | 2.44 | 2.44 | 2.46 | 2.48 | 2.59 | 2.54 | 2.55 | 2.52 | 2.45 | 2.25 | 2.17 | 2.14 | 2.18 | 2.19 | 2.03 | 2.00 | 2.05 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,422,330K ÷ $1,451,890K
= 2.36
The financial leverage ratio of Central Garden & Pet Company A has shown some fluctuations over the past few quarters. The ratio has ranged from 2.00 to 2.59 over the last five years.
From the data provided, we can see that the financial leverage ratio generally increased from the end of 2020 to the middle of 2022, reaching a peak of 2.59 in March 2022. However, since then, the ratio has shown a declining trend, reaching a low of 2.03 in December 2019.
A financial leverage ratio of above 2 indicates that Central Garden & Pet Company A relies more on debt financing compared to equity financing to fund its operations and investments. This level of leverage could potentially magnify both gains and losses for the company, as it indicates a higher risk exposure.
It is essential for investors and stakeholders to monitor the financial leverage ratio of the company over time to assess the company's financial risk and stability, as changes in this ratio can impact the company's ability to meet its financial obligations and affect its overall financial health.
Peer comparison
Dec 31, 2023