Performance Food Group Co (PFGC)

Activity ratios

Short-term

Turnover ratios

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 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
Inventory turnover 14.37 14.63 13.54 14.16 15.60 16.56 15.39 14.53 15.04 15.68 15.06 14.85 13.31 13.22 11.10 10.44 14.61 15.42 15.97 15.04
Receivables turnover 21.61 21.84 22.33 23.27 22.85 23.76 24.51 23.94 23.46 24.95 25.11 23.92 21.74 20.33 18.87 15.08 18.65 18.75 21.55 17.88
Payables turnover 17.65 17.80 18.24 18.77 19.93 20.51 21.22 20.29 20.79 20.55 20.84 18.85 17.83 15.95 14.48 12.59 15.13 15.71 23.01 15.73
Working capital turnover 24.18 23.84 21.79 22.12 24.33 25.39 23.44 21.34 22.73 23.98 23.34 24.07 21.30 22.09 18.76 16.16 28.86 30.99 22.57 21.92

The activity ratios of Performance Food Group Co over the period from September 2020 through June 2025 provide insight into the company's operational efficiency and management of key working capital components.

Inventory Turnover:
Throughout the period, the inventory turnover ratio has largely exhibited stability with slight fluctuations. Starting at 15.04 in September 2020, the ratio generally increased, reaching a peak of approximately 16.56 in March 2024 before experiencing a modest decline to 14.37 by June 2025. This trend indicates a relatively consistent ability to sell and replenish inventory, suggesting efficient inventory management with minimal excess stock. The stable and relatively high turnover ratios point toward effective inventory control aligned with industry standards for wholesale distribution.

Receivables Turnover:
Receivables turnover ratios have demonstrated overall upward momentum, increasing from 17.88 in September 2020 to around 24.51 in December 2023, with some minor fluctuations thereafter. The rising trend indicates improved receivables collection efficiency, with the company collecting outstanding receivables more quickly over time. Periodic stabilization around the low 20s suggests consistent credit management practices, balancing sales growth with effective receivables management.

Payables Turnover:
The payables turnover ratio has shown an upward trend, moving from 15.73 in September 2020 to approximately 21.22 in December 2023, with some fluctuations. The increase signifies that the company is paying its suppliers more frequently within the period, which can reflect improved cash flow management or negotiated payment terms. A slight weakening trend post-December 2023 suggests a potential elongation of payment periods, possibly indicating strategic supplier negotiations or cash flow considerations.

Working Capital Turnover:
The working capital turnover ratio reveals variability but generally maintains a high level over the examined timeframe. Initial values around 21.92 in September 2020 fluctuate, reaching peaks over 30 in March 2021 and March 2024, before settling around the low twenties in subsequent periods. Elevated ratios demonstrate effective utilization of working capital in generating sales. The fluctuations may mirror operational adjustments or seasonal influences affecting working capital deployment and efficiency.

Summary:
Overall, Performance Food Group Co’s activity ratios depict a company with efficient and improving receivables management and stable inventory turnover, supported by strategic accounts payable practices. The increasing receivables and payables turnover ratios indicate enhanced operational efficiencies and cash management strategies. The stabilization of these activity ratios over time suggests the company has maintained consistent operational performance while adapting to market conditions, with a tendency toward improved asset utilization and liquidity management over the period analyzed.


Average number of days

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 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
Days of inventory on hand (DOH) days 25.39 24.94 26.95 25.78 23.40 22.04 23.72 25.13 24.26 23.28 24.23 24.57 27.42 27.62 32.89 34.98 24.98 23.67 22.86 24.27
Days of sales outstanding (DSO) days 16.89 16.72 16.35 15.68 15.97 15.36 14.89 15.25 15.56 14.63 14.54 15.26 16.79 17.95 19.34 24.21 19.57 19.46 16.94 20.42
Number of days of payables days 20.67 20.50 20.01 19.44 18.31 17.79 17.20 17.99 17.56 17.76 17.52 19.37 20.47 22.88 25.22 28.99 24.13 23.23 15.86 23.20

The activity ratios of Performance Food Group Co, as reflected through key operational metrics, exhibit a trend of relative stability with some fluctuations over the analyzed period. Analysis of Days of Inventory on Hand (DOH) indicates that inventory levels generally hover around approximately 23 to 25 days. Notably, there was a brief peak near 35 days during the third quarter of 2021, possibly signaling inventory buildup or supply chain adjustments during that period. Since then, inventory levels have normalized, maintaining a range between approximately 22 and 27 days, suggesting a controlled inventory management approach that aligns with industry standards for distribution and wholesale operations.

The Days of Sales Outstanding (DSO) show a consistent decline from around 20 days at the start of the observed period to below 16 days by late 2022, indicating an improvement in receivables collection efficiency. The stability thereafter, maintaining approximately 15 to 17 days, reflects a disciplined credit management process, enhancing cash flow and operational liquidity.

In terms of Accounts Payable, the Number of Days of Payables reveals a pattern of moderate fluctuation within a range of roughly 15 to 23 days. Earlier periods saw payables extend up to approximately 29 days, after which the company appears to have adopted a more conservative payment strategy, reducing the payable period to around 17 to 20 days. This adjustment may be aimed at optimizing cash flow management or responding to supplier payment terms.

Overall, the activity ratios of Performance Food Group Co demonstrate a pattern of operational efficiency, characterized by stable inventory levels, improving receivable collections, and moderate, managed accounts payable periods. These trends suggest a focus on effective working capital management and supply chain optimization over the analyzed timeframe.


Long-term

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 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
Fixed asset turnover 18.34 19.29 25.93 26.09 25.96 18.45 21.67 18.90 12.83 14.99 17.29 17.27 17.12
Total asset turnover 3.54 3.59 3.52 4.08 4.35 4.50 4.48 4.45 4.58 4.67 4.62 4.54 4.11 3.81 3.32 2.91 3.87 3.61 3.56 3.35

The analysis of Performance Food Group Co’s long-term activity ratios, specifically the fixed asset turnover and total asset turnover, reveals insights into the company's efficiency in utilizing its assets over the observed period.

Fixed Asset Turnover:
This ratio measures how effectively the company generates sales from its fixed assets, such as property, plant, and equipment. Starting from 17.12 as of September 30, 2020, the ratio fluctuated over the subsequent periods. It saw a slight increase through December 2020 and March 2021, reaching approximately 17.29 before experiencing a notable decline in June 2021 to 14.99. The ratio further decreased to 12.83 by September 2021, suggesting reduced efficiency in asset utilization during this interval. Conversely, from December 2021 onward, the ratio demonstrated a substantial recovery and upward trend, peaking at 26.09 on December 31, 2022, indicating significant improvement in asset utilization efficiency. The ratio remained relatively high through March and June 2023 at approximately 25.93 and 19.29 respectively, before experiencing a slight decline to 18.34 in September 2023. The data for subsequent periods are unavailable, precluding further analysis beyond this date.

Total Asset Turnover:
This ratio assesses the overall efficiency in generating sales from total assets, including both fixed and current assets. Starting at 3.35 as of September 30, 2020, the ratio increased steadily, reaching a high of 4.62 on December 31, 2022. Throughout 2022 and into 2023, it maintained an elevated level around 4.45 to 4.67, reflecting efficient utilization of all assets to generate sales. Towards the latter part of the period, specifically by December 2023, the ratio declined slightly to 4.48 and then further to 4.50 in March 2024, suggesting a marginal reduction in overall asset efficiency. The downward trend continued into the periods ending June and September 2024, with ratios decreasing to 4.35 and 4.08 respectively, and further dropping to 3.52 by December 2024. In 2025, the ratio stabilized somewhat around 3.59 to 3.54, indicating a potential plateau in asset utilization effectiveness.

Summary:
Overall, Performance Food Group Co experienced a period of dynamic change in its long-term activity ratios. The fixed asset turnover demonstrated volatility, with periods of decline followed by strong recoveries, particularly in late 2021 and 2022, suggesting strategic or operational improvements in asset utilization during those years. The total asset turnover showed a consistent upward trajectory until late 2022, after which it exhibited a gradual decline, possibly indicating saturation or challenges in maintaining efficiency gains with an increasing asset base or operational headwinds. The patterns highlight periods of operational efficiency enhancement interspersed with phases of reduced asset utilization effectiveness, reflecting the company's evolving asset management and operational strategies over the analyzed timeline.