Performance Food Group Co (PFGC)

Working capital turnover

Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
Revenue US$ in thousands 58,281,200 57,254,700 50,894,100 30,398,900 25,086,300
Total current assets US$ in thousands 6,153,300 6,071,500 6,022,000 3,580,400 3,453,900
Total current liabilities US$ in thousands 3,758,100 3,553,100 3,633,000 2,527,200 2,618,700
Working capital turnover 24.33 22.73 21.30 28.86 30.04

June 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $58,281,200K ÷ ($6,153,300K – $3,758,100K)
= 24.33

Performance Food Group Co's working capital turnover has shown a decreasing trend over the past five years. In June 2020, the working capital turnover was 30.04, indicating the company's efficiency in generating sales from its working capital. However, this ratio declined to 28.86 in June 2021, suggesting a slight decrease in efficiency.

The trend continued as the working capital turnover further decreased to 21.30 in June 2022, indicating that the company may be facing challenges in efficiently utilizing its working capital to generate sales. In the subsequent years, the ratio slightly improved to 22.73 in June 2023 and 24.33 in June 2024, but it still remains lower compared to the initial ratio in 2020.

The declining trend in working capital turnover could indicate inefficiencies in managing the company's working capital or challenges in converting working capital into sales. Performance Food Group Co may need to review its working capital management strategies to improve efficiency and optimize its cash flow.


Peer comparison

Jun 30, 2024

Company name
Symbol
Working capital turnover
Performance Food Group Co
PFGC
24.33
SpartanNash Co
SPTN
24.08
The Chefs Warehouse Inc
CHEF
8.57
United Natural Foods Inc
UNFI
29.88