Performance Food Group Co (PFGC)

Short-term

Turnover ratios

Inventory turnover:
Performance Food Group Co has shown a consistent improvement in its inventory turnover ratio over the past few quarters, indicating that the company is managing its inventory efficiently. A high inventory turnover ratio suggests that the company is selling its products quickly, which can help prevent excess inventory build-up and reduce storage costs.

Receivables turnover:
The receivables turnover ratio has been relatively stable and high, indicating that Performance Food Group Co is efficient in collecting its accounts receivable. A higher receivables turnover ratio suggests that the company has effective credit policies and is able to collect outstanding receivables promptly.

Payables turnover:
The payables turnover data is missing for most periods, but from the available information, we can see that the company has a moderate payables turnover ratio when reported. A higher payables turnover ratio typically indicates that the company is managing its payables effectively by paying its suppliers in a timely manner.

Working capital turnover:
The working capital turnover ratio has shown variability over time, but overall, Performance Food Group Co has maintained a relatively high turnover. A high working capital turnover ratio suggests that the company is efficiently utilizing its working capital to generate sales revenue. This can be an indication of effective management of assets and liabilities to support the company's operations.

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Average number of days

Performance Food Group Co has shown fluctuations in its activity ratios over the past few quarters.

Days of Inventory on Hand (DOH):
- The company's DOH has ranged from a low of 21.84 days to a high of 34.45 days.
- On average, Performance Food Group Co holds inventory for around 24 to 29 days before it is sold.
- The trend indicates some variability in managing inventory levels efficiently, with a noticeable increase in DOH in Q1 2022 and Q2 2022, followed by a decline in Q3 2022 and improved levels in Q1 and Q2 2023.

Days of Sales Outstanding (DSO):
- DSO has varied from 14.59 days to 16.85 days, implying that the company collects receivables within approximately 15 to 17 days on average.
- Limited data points are available for DSO, but the trend suggests a relatively stable collection process.

Number of Days of Payables:
- Encountering a wide range from 15.62 days to 26.09 days, the company takes around 16 to 26 days to pay its suppliers.
- The lack of visibility for payables data in earlier periods makes it challenging to assess the consistency of the payment cycle.

In summary, Performance Food Group Co has demonstrated some volatility in its activity ratios, particularly in inventory management. Efforts to stabilize inventory levels and maintain consistent collection and payment cycles could enhance overall operational efficiency and cash flow management.

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Long-term

Performance Food Group Co's long-term activity ratios show a trend of improving efficiency in utilizing its fixed assets and total assets to generate sales over the periods analyzed.

The fixed asset turnover ratio has generally been increasing over time, indicating that the company is generating more sales revenue per dollar of fixed assets. This trend suggests improved utilization and efficiency of the company's long-term assets, such as property, plant, and equipment.

Similarly, the total asset turnover ratio has also shown an increasing trend, implying that Performance Food Group Co is effectively using its total assets to generate sales. This indicates that the company is efficiently managing its assets to drive revenue growth.

Overall, the improving long-term activity ratios of Performance Food Group Co reflect the company's ability to optimize its asset base and generate more sales from its fixed and total assets over the periods analyzed.