Performance Food Group Co (PFGC)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.70 | 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 |
| Quick ratio | 0.67 | 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 |
| Cash ratio | 0.01 | 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 |
Performance Food Group Co's liquidity ratios have shown some fluctuations over the past several quarters.
1. Current Ratio: The company's current ratio has generally been above 1, indicating that it has had sufficient current assets to cover its current liabilities. The ratio has ranged from 1.32 to 1.77 over the past two years, with a recent value of 1.70 as of September 30, 2024. This suggests that the company has improved its ability to meet short-term obligations.
2. Quick Ratio: Performance Food Group Co's quick ratio has been volatile, ranging from 0.00 to 0.69 over the same period. The recent value of 0.67 as of September 30, 2024, indicates that the company may have some challenges in meeting immediate short-term obligations with its most liquid assets.
3. Cash Ratio: The cash ratio, which measures the company's ability to cover current liabilities with only cash and cash equivalents, has also shown fluctuations, with values ranging from 0.00 to 0.20. The recent value of 0.01 as of September 30, 2024, suggests that the company may have limited cash reserves relative to its current liabilities.
Overall, Performance Food Group Co has demonstrated a generally healthy current ratio, but its quick and cash ratios have shown more variability, indicating potential difficulties in meeting short-term obligations with liquid assets. Management may need to continue monitoring and managing liquidity effectively to ensure the company's financial health.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Performance Food Group Co has fluctuated over the past few quarters. A longer cash conversion cycle indicates that the company takes longer to convert its investments in inventory and other resources into cash from sales.
In the most recent quarter, ending September 30, 2024, the cash conversion cycle increased to 41.42 days from the previous quarter's 37.26 days. This suggests that Performance Food Group Co took longer to convert its resources into cash during this period.
The company's cash conversion cycle has shown variability in recent quarters, with fluctuations between 23.08 days and 44.00 days. The lowest cash conversion cycle was recorded during the first quarter of 2021, at 0.43 days, indicating a very efficient conversion of resources into cash during that period.
Overall, the analysis of Performance Food Group Co's cash conversion cycle highlights the importance of managing inventory, accounts receivable, and accounts payable efficiently to improve cash flow and overall liquidity. Monitoring and optimizing this cycle can help the company better manage its working capital and enhance its financial performance.