Performance Food Group Co (PFGC)
Cash conversion cycle
| Sep 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 25.62 | 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 |
| Days of sales outstanding (DSO) | days | 15.80 | 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 |
| Cash conversion cycle | days | 41.42 | 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 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.62 + 15.80 – —
= 41.42
The cash conversion cycle of Performance Food Group Co has shown fluctuations over the periods provided in the table. The cash conversion cycle is a key indicator of a company's efficiency in managing its working capital. A shorter cycle indicates that the company is able to convert its investments in inventory and receivables into cash quickly, which is generally favorable.
Looking at the data, the company's cash conversion cycle was relatively stable around 30-40 days for most periods, indicating moderate efficiency in managing its working capital. However, there are certain outliers such as the negative cycle in March 2021 and the very low cycle in March 2021, which may be anomalies or related to specific business events during those periods.
Overall, a consistent effort to optimize the cash conversion cycle is important for the company to ensure efficient use of its resources and to generate cash flow effectively. Monitoring and analyzing this metric regularly can help identify areas for improvement in working capital management.
Peer comparison
Sep 30, 2024