Performance Food Group Co (PFGC)

Short-term

Turnover ratios

The activity ratios of Performance Food Group Co over the period from June 30, 2021, to June 30, 2025, reflect notable trends and changes in the company’s operational efficiency.

Inventory Turnover: The ratio exhibits fluctuations, beginning at 14.61 in 2021, then decreasing to 13.31 in 2022, indicating a slight reduction in inventory efficiency. However, a subsequent upward trend is observed, reaching 15.04 in 2023 and further improving to 15.60 in 2024. A modest decline to 14.37 is noted in 2025, yet the overall trend from 2021 to 2025 indicates a relatively stable inventory management, with periodic improvements.

Receivables Turnover: This ratio shows a generally increasing trajectory, starting at 18.65 in 2021 and rising to 23.46 in 2023. A slight decline to 22.85 in 2024 is observed, followed by a minor decrease to 22.34 in 2025. The pattern suggests enhanced efficiency in collecting receivables during the early period, with a stabilization in recent years.

Payables Turnover: The ratio demonstrates an increasing pattern, rising from 15.13 in 2021 to a peak of 20.79 in 2023. Subsequently, it declines to 19.93 in 2024 and further to 17.65 in 2025. The initial increase indicates a faster turnover of payables, possibly reflecting improved cash flow management or changes in payment policies. The subsequent decrease might suggest extended payment terms or shifts in supplier relationships.

Working Capital Turnover: This ratio shows a downward initial trend from 28.86 in 2021 to 21.30 in 2022, followed by a rise to 22.73 in 2023 and an upward trajectory reaching 24.33 in 2024. In 2025, the ratio marginally declines to 24.18. These fluctuations indicate variability in the efficiency of utilizing working capital to generate sales, with a notable improvement from 2022 onwards.

Overall, the activity ratios of Performance Food Group Co reflect a pattern of operational adjustments aimed at optimizing inventory and receivables management, with periods of improvement and stabilization. The trends suggest efforts towards enhancing receivables collection, maintaining controlled inventory levels, and managing payables effectively, though some fluctuations in working capital efficiency are evident.

---

Average number of days

The activity ratios of Performance Food Group Co, as measured by days of inventory on hand, days of sales outstanding, and days of payables, exhibit notable trends over the analyzed period from June 30, 2021, to June 30, 2025.

Days of Inventory on Hand (DOH):
The company maintained an average of approximately 25 days in 2021, with a slight increase to 27.42 days in 2022. Subsequently, the DOH decreased to 24.26 days in 2023, further declining to 23.40 days in 2024, before rising slightly again to 25.39 days in 2025. This fluctuation indicates that inventory management strategies have experienced periods of both accumulation and reduction, with an overall tendency towards maintaining relatively stable inventory levels around the 24-27 day range.

Days of Sales Outstanding (DSO):
The receivables collection efficiency improved between 2021 and 2023, with DSO decreasing from 19.57 days to 15.56 days. This suggests a trend toward more prompt collection of receivables during this period. However, in 2024, the DSO increased marginally to 15.97 days and continued to slightly rise to 16.34 days in 2025, indicating a slight elongation in the receivables collection cycle but remaining relatively efficient.

Number of Days of Payables:
The company’s payables period was around 24.13 days in 2021, decreasing to 17.56 days in 2023, reflecting a faster payment cycle to suppliers. In 2024, this increased modestly to 18.31 days, and in 2025, it rose further to 20.67 days. This trend suggests a gradual extension in the time taken to settle payables, which could be a strategic move to optimize cash flow but may also impact supplier relationships if extended excessively.

Summary:
Overall, Performance Food Group Co has maintained relatively stable activity ratios over the examined period. The inventory levels have shown minor fluctuations, reflecting consistent inventory management. The receivables collection has improved historically but experienced slight elongation in recent years, and payables have been extended gradually, possibly indicating a deliberate effort to optimize working capital. These trends collectively suggest a steady operational stance with slight strategic shifts in working capital management over the years.

---

Long-term

The analysis of Performance Food Group Co's long-term activity ratios reveals notable trends over the period from June 30, 2021 to June 30, 2023, with projections unavailable beyond that date.

Fixed Asset Turnover Ratio:
- The ratio increased from 14.99 in 2021 to 18.45 in 2022, and further to 19.29 in 2023.
- This upward trajectory signifies an enhancement in the company's efficiency in utilizing its fixed assets to generate sales.
- An increasing ratio suggests improved asset management or increased sales relative to fixed assets, reflecting positively on operational effectiveness.
- The ratio data is unavailable beyond June 30, 2023, indicating either a lack of reported data or a possible change in accounting or reporting practices.

Total Asset Turnover Ratio:
- The ratio rose from 3.87 in 2021 to 4.11 in 2022, and further to 4.58 in 2023.
- This demonstrates a consistent improvement in the efficiency with which the company utilizes its total assets to generate sales.
- The increased ratio over this period indicates enhanced operational efficiency and effective asset management on both fixed and current assets.
- Beyond June 30, 2023, the ratio declines to 4.35 in 2024 and further to 3.54 in 2025, signaling a potential decrease in asset utilization efficiency or a strategic shift impacting asset deployment.

In summary, the company's long-term activity ratios underscore ongoing improvements in asset utilization efficiency during the initial period up to mid-2023. The trend in fixed asset turnover suggests continuous asset management enhancement, while the total asset turnover exhibits a similar pattern but experiences a decline beyond 2023. These patterns may reflect strategic adjustments, changes in operational focus, or external market factors influencing asset deployment efficiency.