Performance Food Group Co (PFGC)
Solvency ratios
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.00 | 3.25 | 3.34 | 3.75 | 3.73 |
The provided data indicates that Performance Food Group Co. maintains a debt structure characterized by negligible or absent debt levels across the given periods, as evidenced by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all consistently at zero from June 30, 2021, through June 30, 2025. This suggests that the company employs minimal to no leverage and relies predominantly on equity financing, resulting in a solvent balance sheet with no apparent short-term or long-term debt obligations.
The financial leverage ratio, which measures the extent of a company's core assets funded by debt relative to equity, exhibits a relatively stable but elevated trend over the period. It begins at 3.73 times in 2021, slightly increases to 3.75 in 2022, then decreases to 3.34 in 2023, and further to 3.25 in 2024. By 2025, it rises again to 4.00. This fluctuation suggests that while debt levels are virtually non-existent in absolute terms, the company's use of financial leverage relative to equity remains significant and somewhat variable over time. The higher ratios imply that, relative to equity, the company's asset base might be more heavily funded through means other than debt, possibly through retained earnings or other internal sources.
In summary, the company demonstrates a very low or zero leverage profile across all measured ratios, indicating a highly solvent status with minimal debt-related risk. The variations in the financial leverage ratio highlight some degree of variability in the relationship between assets and equity, but overall, the company's capital structure appears to be characterized by equity funding rather than external debt.
Coverage ratios
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 3.57 | 3.50 | 1.91 | 1.36 |
The interest coverage ratio of Performance Food Group Co. demonstrates a significant upward trend between June 30, 2021, and June 30, 2024. Specifically, the ratio increased from 1.36 in 2021 to 1.91 in 2022, indicating an improving capacity to meet interest obligations. This upward trajectory continued into 2023, reaching 3.50, which substantially exceeds the generally accepted threshold of 1.5, suggesting a strong ability to cover interest expenses with operating earnings. The ratio remained relatively stable through June 30, 2024, at 3.57, reflecting sustained improvement in financial stability and coverage capacity.
However, the data points to a notable decline in 2025, with the interest coverage ratio dropping to zero. This indicates an apparent failure to generate sufficient earnings before interest and taxes (EBIT) to cover interest obligations, potentially signaling a critical financial deterioration or extraordinary circumstances impeding the company's capacity to operate profitably or meet interest payments accordingly.
Overall, the trend from 2021 to 2024 reflects a period of strengthening financial health in terms of interest coverage, while the 2025 data suggests a concerning weakening or potential insolvency scenario that warrants further investigation into underlying causes such as operational challenges, restructuring, or extraordinary charges.