Performance Food Group Co (PFGC)
Cash conversion cycle
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 21.84 | 23.51 | 24.91 | 24.05 | 23.08 | 24.03 | 24.37 | 27.15 | 27.29 | 32.46 | 34.45 | 24.62 | 23.34 | 22.52 | 23.94 | 25.14 | 29.08 | 24.07 | 26.97 | 28.29 |
| Days of sales outstanding (DSO) | days | 15.42 | 14.95 | 15.31 | 15.62 | — | 14.59 | — | 16.85 | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | 22.91 | 15.62 | 22.89 | 26.09 | 22.14 | 18.58 | 22.72 | 23.58 |
| Cash conversion cycle | days | 37.26 | 38.46 | 40.21 | 39.67 | 23.08 | 38.61 | 24.37 | 44.00 | 27.29 | 32.46 | 34.45 | 24.62 | 0.43 | 6.90 | 1.05 | -0.95 | 6.94 | 5.49 | 4.25 | 4.71 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 21.84 + 15.42 – —
= 37.26
The cash conversion cycle of Performance Food Group Co has shown fluctuations over the past few quarters. The company's ability to convert its resources into cash is crucial for operational efficiency and liquidity management.
From the data provided, we observe that the cash conversion cycle fluctuated between positive and negative values, indicating varying levels of efficiency in managing working capital.
In the most recent quarter ending March 31, 2024, the cash conversion cycle was 37.26 days, showing an improvement from the previous quarter. However, a longer cash conversion cycle may imply that the company takes longer to convert its investments into cash, potentially leading to liquidity challenges.
The trend over the past few quarters shows that the company experienced a significant increase in the cash conversion cycle in December 2022, followed by a sharp decrease in March 2021. This fluctuation suggests potential challenges in managing inventory, accounts receivable, and accounts payable efficiently.
For a more comprehensive analysis, it would be beneficial to compare the cash conversion cycle of Performance Food Group Co with industry benchmarks and its historical performance to gain insights into its operational efficiency and liquidity management practices.
Peer comparison
Mar 31, 2024