Performance Food Group Co (PFGC)
Debt-to-capital ratio
| 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,215,400 | 3,502,000 | 3,710,500 | 3,460,100 | 3,532,400 | 3,679,500 | 3,664,000 | 3,908,800 | 3,721,100 | 3,846,800 | 3,669,700 | 2,240,500 | 2,149,100 | 2,507,800 | 2,551,400 | 2,249,300 | 3,186,400 | 2,188,400 | 2,212,100 | 1,202,900 |
| Total stockholders’ equity | US$ in thousands | 3,953,400 | 3,861,700 | 3,828,300 | 3,745,500 | 3,581,700 | 3,496,500 | 3,400,700 | 3,299,500 | 3,204,500 | 3,160,900 | 3,123,500 | 2,106,100 | 2,057,700 | 2,046,900 | 2,020,700 | 2,010,600 | 1,823,200 | 1,378,500 | 1,333,100 | 1,298,200 |
| Debt-to-capital ratio | 0.45 | 0.48 | 0.49 | 0.48 | 0.50 | 0.51 | 0.52 | 0.54 | 0.54 | 0.55 | 0.54 | 0.52 | 0.51 | 0.55 | 0.56 | 0.53 | 0.64 | 0.61 | 0.62 | 0.48 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,215,400K ÷ ($3,215,400K + $3,953,400K)
= 0.45
The debt-to-capital ratio for Performance Food Group Co has shown some fluctuations over the past few quarters. The ratio has ranged from 0.45 to 0.64 over the past five quarters, with a general upward trend observed since the end of 2019. This trend indicates a gradual increase in the company's reliance on debt as a source of financing compared to its equity capital.
The company's ratio peaked at 0.64 in the first quarter of 2020, which suggests a relatively higher proportion of debt in its capital structure at that time. Subsequently, the ratio declined in the following quarters but remained above 0.50, indicating a moderate level of debt relative to the company's total capital.
It is important to note that a higher debt-to-capital ratio can indicate increased financial risk for the company, as higher debt levels may lead to higher interest payments and potential difficulties in servicing the debt. However, the optimal level of debt can vary based on the company's industry, growth prospects, and overall financial health.
Overall, Performance Food Group Co should continue to monitor its debt-to-capital ratio and evaluate its debt levels relative to its equity capital to ensure a sustainable and healthy capital structure that supports its long-term financial stability and growth.
Peer comparison
Mar 31, 2024