Performance Food Group Co (PFGC)
Debt-to-equity ratio
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,460,100 | 3,908,800 | 2,240,500 | 2,249,300 | 1,202,900 |
| Total stockholders’ equity | US$ in thousands | 3,745,500 | 3,299,500 | 2,106,100 | 2,010,600 | 1,298,200 |
| Debt-to-equity ratio | 0.92 | 1.18 | 1.06 | 1.12 | 0.93 |
June 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,460,100K ÷ $3,745,500K
= 0.92
The debt-to-equity ratio of Performance Food Group Co has fluctuated over the past five years, indicating changes in its capital structure. As of June 30, 2023, the company's debt-to-equity ratio stands at 0.92, indicating that the company's debt level is lower than its equity level. This suggests that Performance Food Group Co relies more on equity financing rather than debt to fund its operations.
Comparing this ratio to previous years, we note that there has been a general downward trend in the debt-to-equity ratio since 2022, when it was at its highest point of 1.18. This decrease indicates a reduction in the company's reliance on debt as a source of financing relative to equity.
In 2021 and 2020, the ratio was relatively stable at around 1.06 and 1.12, respectively, before decreasing to 0.93 in 2019. The decrease in the debt-to-equity ratio from 2022 to 2023 suggests that Performance Food Group Co has been reducing its debt levels or increasing its equity levels, which can have implications for the company's financial risk and solvency.
Overall, the downward trend in the debt-to-equity ratio indicates a strengthening of the company's financial position and a more conservative approach to capital structure management. However, it is essential to consider the reasons behind these changes and assess the overall financial health and strategy of Performance Food Group Co to gain a comprehensive understanding of its leverage position.
Peer comparison
Jun 30, 2023