Performance Food Group Co (PFGC)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 20,000 | 12,700 | 11,600 | 11,100 | 420,700 |
| Short-term investments | US$ in thousands | 8,200 | 14,800 | 7,300 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,758,100 | 3,553,100 | 3,633,000 | 2,527,200 | 2,618,700 |
| Quick ratio | 0.01 | 0.01 | 0.01 | 0.00 | 0.16 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($20,000K
+ $8,200K
+ $—K)
÷ $3,758,100K
= 0.01
The quick ratio of Performance Food Group Co has shown a decline over the past few years, indicating potential liquidity concerns. As of June 30, 2020, the quick ratio was at 0.16, dropping to 0.00 as of June 30, 2021, suggesting a significant decrease in the company's ability to meet its short-term obligations with its most liquid assets. The ratio slightly improved in the subsequent years, reaching 0.01 as of June 30, 2022, 2023, and 2024.
A quick ratio below 1.0 generally raises a red flag regarding a company's ability to cover its short-term liabilities with its quick assets. The consistent low quick ratio of Performance Food Group Co indicates a potential liquidity risk that may necessitate closer monitoring and management attention to ensure the company can meet its financial obligations in the short term.
Peer comparison
Jun 30, 2024