Central Garden & Pet Company A (CENTA)
Interest coverage
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 198,622 | 242,161 | 246,917 | 229,679 | 219,016 | 217,686 | 206,290 | 233,961 | 256,641 | 253,133 | 251,493 | 250,303 | 252,378 | 269,730 | 259,018 | 220,383 | 196,910 | 185,218 | 155,338 | 153,810 |
| Interest expense (ttm) | US$ in thousands | 57,527 | 56,550 | 56,372 | 56,872 | 57,025 | 58,507 | 58,387 | 58,240 | 58,255 | 57,904 | 56,613 | 52,106 | 58,597 | 55,121 | 53,819 | 54,350 | 44,016 | 43,907 | 42,754 | 42,641 |
| Interest coverage | 3.45 | 4.28 | 4.38 | 4.04 | 3.84 | 3.72 | 3.53 | 4.02 | 4.41 | 4.37 | 4.44 | 4.80 | 4.31 | 4.89 | 4.81 | 4.05 | 4.47 | 4.22 | 3.63 | 3.61 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $198,622K ÷ $57,527K
= 3.45
The interest coverage ratio for Central Garden & Pet Company A has shown a generally stable and healthy trend over the past several quarters. The ratio has consistently remained above 3.0, indicating that the company has been able to cover its interest expenses comfortably with operating profits.
Specifically, in the most recent quarter ending September 30, 2024, the interest coverage ratio was 3.45, showing a slight decline from the previous quarter but still at a satisfactory level. This suggests that the company's earnings before interest and taxes (EBIT) were able to cover its interest expenses 3.45 times over.
Over the past few years, the interest coverage ratio has fluctuated within a narrow range between 3.5 and 4.8, which indicates a consistent ability to meet debt obligations from operating income. This stability in the interest coverage ratio reflects a financially sound position for Central Garden & Pet Company A and suggests that it has been managing its debt obligations effectively.
In conclusion, the consistent and reasonable interest coverage ratios of Central Garden & Pet Company A indicate a strong financial position and a reliable ability to meet its debt obligations.
Peer comparison
Sep 30, 2024