Performance Food Group Co (PFGC)

Short-term

Turnover ratios

Performance Food Group Co's inventory turnover has shown fluctuations over the years, ranging from a low of 10.60 to a high of 16.72. The company seems to have a relatively healthy inventory turnover, indicating efficient management of inventory levels.

The receivables turnover ratio was unavailable for the early years but started to be reported in the most recent periods. The figures show an increasing trend, indicating the company is collecting its receivables more quickly, which is a positive sign for cash flow management.

On the other hand, the payables turnover ratio shows a decreasing trend, suggesting that the company is taking longer to pay its suppliers over the years. This could potentially strain relationships with suppliers if not managed carefully.

In terms of working capital turnover, the company has maintained a relatively stable performance, with the ratio staying within a narrow range over the years. This indicates that Performance Food Group Co is effectively utilizing its working capital to generate sales.

Overall, Performance Food Group Co's activity ratios indicate efficient management of inventory and working capital, although the trend in payables turnover warrants attention to ensure smooth supplier relationships.

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Average number of days

Based on the provided data, let's analyze the activity ratios of Performance Food Group Co:

1. Days of Inventory on Hand (DOH):
- The company's DOH has shown fluctuations over the period under review, ranging from a low of 21.84 days to a high of 34.45 days.
- Generally, a lower number of days of inventory on hand indicates efficient inventory management, as the company is selling inventory quickly.
- Performance Food Group Co has managed to keep its inventory turnover relatively stable, with the DOH hovering around the mid-20s to low 30s range in recent quarters.
- The trend suggests that the company is effectively managing its inventory levels, avoiding excessive stockpiling that could lead to obsolescence or storage costs.

2. Days of Sales Outstanding (DSO):
- The DSO data is not provided for most periods, making it challenging to gauge the efficiency of the company's accounts receivable management.
- However, from the available data, we see that the DSO has decreased from 16.85 days to 16.63 days over the last few quarters, indicating a slight improvement in collecting receivables.
- A lower DSO is generally preferred as it signifies that the company is collecting payments from customers more quickly.

3. Number of Days of Payables:
- The data regarding the number of days of payables is inconsistent, with missing values for several periods.
- Until the latest reported period, the number of days of payables has varied, indicating fluctuations in the company's payment terms with suppliers.
- A longer period of payables suggests that the company is taking longer to pay its suppliers, which can be advantageous for maintaining cash flow but may strain relationships with vendors if extended too far.

In conclusion, Performance Food Group Co's activity ratios indicate a reasonably efficient management of inventory levels and a slight improvement in collecting receivables. However, more consistent data on the number of days of payables would provide a more comprehensive understanding of the company's working capital management.

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Long-term

Performance Food Group Co's fixed asset turnover ratio has been fluctuating over the years, ranging from a low of 15.30 to a high of 26.00. The ratio indicates the efficiency of the company in generating sales from its fixed assets. The trend shows an overall increase in the ratio from 2019 to 2024, reaching a peak of 26.00 in December 2022 before slightly declining.

On the other hand, the total asset turnover ratio, which measures how efficiently the company is using its total assets to generate revenue, shows a similar overall increasing trend, starting at 3.73 in December 2019 and peaking at 4.60 in December 2022. However, the ratio dipped in September 2021 before recovering and stabilizing at around 4.00 in the following periods.

Overall, both ratios indicate improvements in the company's asset utilization efficiency over the years, with the total asset turnover ratio showing a slightly more consistent upward trend compared to the fixed asset turnover ratio. These trends suggest that Performance Food Group Co is effectively managing and utilizing its assets to drive revenue growth.