Performance Food Group Co (PFGC)
Cash ratio
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 12,700 | 11,600 | 11,100 | 420,700 | 14,700 |
| Short-term investments | US$ in thousands | 14,800 | 7,300 | — | — | 1,900 |
| Total current liabilities | US$ in thousands | 3,553,100 | 3,633,000 | 2,527,200 | 2,618,700 | 1,699,300 |
| Cash ratio | 0.01 | 0.01 | 0.00 | 0.16 | 0.01 |
June 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($12,700K
+ $14,800K)
÷ $3,553,100K
= 0.01
The cash ratio of Performance Food Group Co has shown fluctuating trends over the past five years. As of June 30, 2023, the cash ratio stood at 0.01, which indicates that for every dollar of current liabilities, the company holds $0.01 in cash and cash equivalents.
Compared to the previous years, the cash ratio has been consistently low, suggesting that the company may have limited liquid assets available to cover its short-term obligations. This could potentially expose the company to liquidity risks, making it challenging to meet immediate financial commitments.
The significant drop in the cash ratio from 0.16 in June 2020 to 0.01 in June 2021 is noteworthy, indicating a substantial decrease in the company's ability to cover its short-term liabilities with cash on hand during that period.
Overall, the low and decreasing trend in the cash ratio highlights the importance for Performance Food Group Co to carefully manage its liquidity position to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Jun 30, 2023