Performance Food Group Co (PFGC)
Liquidity ratios
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.67 | 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 |
| Quick ratio | 0.65 | 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 |
| Cash ratio | 0.00 | 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 |
Performance Food Group Co's current ratio has fluctuated over the years, ranging from a low of 1.32 in June 2020 to a high of 1.77 in September 2023. This ratio measures the company's ability to cover its short-term obligations with its current assets, and an ideal current ratio is generally considered to be 2 or higher.
The quick ratio, which excludes inventory from current assets, shows a similar pattern of variability. It hit a low of 0.00 in March 2021 and a high of 0.69 in June 2023. A quick ratio of 1 or higher is typically preferred as it indicates the company can cover its short-term liabilities without relying on the sale of inventory.
The cash ratio reflects the company's ability to cover its current liabilities with its cash and cash equivalents. Performance Food Group Co's cash ratio has ranged from a low of 0.00 to a high of 0.20. A cash ratio of 0.20 or higher is generally considered healthy, as it shows the company has enough cash on hand to meet its short-term obligations.
Overall, Performance Food Group Co has maintained adequate liquidity levels over the years, with its current ratio staying above 1 and its quick and cash ratios showing variability but generally remaining within acceptable ranges.
Additional liquidity measure
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 43.71 | 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 |
Performance Food Group Co's cash conversion cycle measures how quickly the company can convert its resources into cash through its operating cycle. Looking at the data provided, there are fluctuations in the cash conversion cycle over the periods analyzed.
The cash conversion cycle was relatively stable in 2019 and early 2020, staying within single-digit days. However, there was a sharp decline in the cycle in June 2020, turning negative, which could indicate the company had a very efficient collection of receivables or managing inventory.
In the following quarters, the cycle fluctuated, showing periods of both efficient and less efficient cash conversion. This variability continued into 2022 and 2023, with the company experiencing peaks and troughs in the cycle length.
By 2024, the cash conversion cycle had stretched to over 40 days, indicating potential challenges in liquidity management or delays in converting assets to cash. This might require further investigation to understand the underlying reasons for the prolonged cycle.
Overall, the trend in Performance Food Group Co's cash conversion cycle shows variability over time, highlighting the importance of closely monitoring working capital management to ensure efficient cash flow operations.