Performance Food Group Co (PFGC)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 20,000 | 12,700 | 11,600 | 11,100 | 420,700 |
| Short-term investments | US$ in thousands | 8,200 | 14,800 | 7,300 | — | — |
| Total current liabilities | US$ in thousands | 3,758,100 | 3,553,100 | 3,633,000 | 2,527,200 | 2,618,700 |
| Cash ratio | 0.01 | 0.01 | 0.01 | 0.00 | 0.16 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($20,000K
+ $8,200K)
÷ $3,758,100K
= 0.01
The cash ratio of Performance Food Group Co has shown a fluctuating trend over the years. As of June 30, 2020, the company had a cash ratio of 0.16, indicating that it had $0.16 of cash and cash equivalents for every $1 of current liabilities. However, the cash ratio dropped significantly to 0.00 as of June 30, 2021, suggesting that the company's cash and cash equivalents were insufficient to cover its short-term obligations.
Subsequently, there was a slight improvement in the cash ratio to 0.01 as of both June 30, 2022, June 30, 2023, and June 30, 2024. While this indicates a marginal increase in the company's ability to meet its immediate liabilities with cash on hand, the ratio remains relatively low, signaling a potential liquidity risk.
It is important for Performance Food Group Co to closely monitor its cash position and liquidity management to ensure it can meet its short-term financial obligations effectively and sustainably. A higher cash ratio would provide greater financial flexibility and resilience during uncertain economic conditions.
Peer comparison
Jun 30, 2024