Central Garden & Pet Company A (CENTA)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 162,004 | 163,997 | 156,494 |
| Interest expense (ttm) | US$ in thousands | 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 | 42,614 | 42,549 | 42,470 |
| Interest coverage | 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 | 3.80 | 3.85 | 3.68 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $229,679K ÷ $56,872K
= 4.04
Central Garden & Pet Company A's interest coverage ratio has shown fluctuations over the periods indicated. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
From Dec 2019 to Dec 2023, the interest coverage ratio ranged from 3.61 to 4.89, with an average of approximately 4.11. This indicates that, on average, Central Garden & Pet Company A was able to cover its interest expenses around four times with its EBIT during this period.
In analyzing the trend, we observe some variability in the interest coverage ratio. There are periods where the ratio increased, indicating an improved ability to cover interest expenses, and other periods where it slightly decreased. For example, the ratio increased from 3.85 in Mar 2019 to 4.89 in Jun 2021, suggesting a stronger ability to meet interest obligations during that time frame.
Overall, Central Garden & Pet Company A's interest coverage ratio has been relatively stable and at a level that indicates the company has generally been able to comfortably cover its interest expenses with its operating earnings during the periods in question. However, monitoring this ratio over time is essential to assess the company's ongoing financial health and sustainability of its debt obligations.
Peer comparison
Dec 31, 2023