Performance Food Group Co (PFGC)
Quick ratio
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 2,441,000 | 2,341,400 | 1,629,600 | 1,415,100 | 1,227,300 |
| Total current liabilities | US$ in thousands | 3,553,100 | 3,633,000 | 2,527,200 | 2,618,700 | 1,699,300 |
| Quick ratio | 0.69 | 0.65 | 0.65 | 0.70 | 0.73 |
June 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($12,700K
+ $14,800K
+ $2,441,000K)
÷ $3,553,100K
= 0.69
The quick ratio of Performance Food Group Co has shown a slight fluctuation over the past five years, ranging from 0.65 to 0.73. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. With a current quick ratio of 0.69 as of June 30, 2023, there seems to be a slight improvement compared to the previous year.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations using only its current assets, excluding inventory. Performance Food Group Co's quick ratio below 1 suggests that its liquidity position may be a concern, but the company still has enough liquid assets to cover its short-term liabilities.
It is important for investors and stakeholders to monitor the quick ratio over time to assess the company's ability to manage its short-term financial obligations effectively. The slight improvement in the quick ratio from the previous year may indicate a better liquidity position for Performance Food Group Co as of June 30, 2023.
Peer comparison
Jun 30, 2023