Performance Food Group Co (PFGC)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.64 | 1.71 | 1.77 | 1.71 | 1.69 | 1.71 | 1.64 | 1.66 | 1.59 | 1.62 | 1.64 | 1.42 | 1.38 | 1.58 | 1.52 | 1.32 | 1.75 | 2.05 | 2.07 | 1.57 |
| Quick ratio | 0.69 | 0.68 | 0.69 | 0.69 | 0.00 | 0.66 | 0.00 | 0.65 | 0.00 | 0.00 | 0.01 | 0.00 | 0.04 | 0.20 | 0.18 | 0.16 | 0.18 | 0.01 | 0.01 | 0.01 |
| Cash ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.01 | 0.00 | 0.04 | 0.20 | 0.18 | 0.16 | 0.18 | 0.01 | 0.01 | 0.01 |
Performance Food Group Co's liquidity ratios have been relatively stable over the past years. The current ratio has ranged between 1.32 and 1.77, with a current value of 1.64 as of March 31, 2024. This indicates that the company has $1.64 in current assets for every $1 in current liabilities, reflecting a healthy liquidity position.
On the other hand, the quick ratio has been lower, varying between 0.00 and 0.69, and is currently at 0.69 as of March 31, 2024. This suggests that the company's ability to meet its short-term obligations with its most liquid assets is more constrained compared to the current ratio.
The cash ratio has shown fluctuations, ranging from 0.00 to 0.04, with a current value of 0.00 as of March 31, 2024. This implies that Performance Food Group Co may not have enough cash on hand to cover its short-term liabilities without relying on other current assets.
Overall, while the current ratio indicates a comfortable liquidity position for Performance Food Group Co, the lower quick ratio and cash ratio suggest that the company may need to manage its short-term liquidity more effectively to ensure financial stability.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Performance Food Group Co has shown variability over the past few quarters. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally favorable as it indicates quicker turnover of inventory and collection of receivables.
In the most recent quarter, ending March 31, 2024, the cash conversion cycle was 37.26 days. This represents a slight improvement from the previous quarter but is higher compared to the cycles seen in the earlier part of 2023.
The company experienced its shortest cash conversion cycle in the first quarter of 2021, with a cycle of 0.43 days, indicating efficient management of working capital during that period.
It is noteworthy that in the fourth quarter of 2020 and the first quarter of 2021, the company had negative cash conversion cycles, which could signal aggressive management of working capital, possibly from optimized inventory management and efficient collection of receivables.
Overall, Performance Food Group Co should continue to focus on optimizing its cash conversion cycle to improve liquidity and efficiency in its operations. Monitoring the cycle over time can provide insights into the company's working capital management and operational efficiency.