Performance Food Group Co (PFGC)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 17,881,200 | 13,392,900 | 12,499,000 | 12,378,000 | 7,845,700 |
| Total stockholders’ equity | US$ in thousands | 4,472,400 | 4,126,900 | 3,745,500 | 3,299,500 | 2,106,100 |
| Financial leverage ratio | 4.00 | 3.25 | 3.34 | 3.75 | 3.73 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $17,881,200K ÷ $4,472,400K
= 4.00
The financial leverage ratio of Performance Food Group Co over the period from June 30, 2021, to June 30, 2025, exhibits notable fluctuations, reflecting changes in the company's reliance on debt relative to its equity.
At the end of fiscal year 2021, the ratio stood at 3.73, indicating a leverage level where the company employed approximately 3.73 units of debt for every unit of equity. This modestly increased to 3.75 by June 30, 2022, suggesting a slight augmentation in leverage, possibly due to increased borrowing or a decrease in equity.
However, a downward trend is observed thereafter, with the ratio decreasing to 3.34 by June 30, 2023. This decline potentially indicates a reduction in leverage, which could result from debt repayment, equity financing, or a combination of both, leading to a more conservative capital structure. The decrease continues into June 2024, where the ratio further reduces to 3.25, implying an ongoing trend towards decreased leverage.
By June 30, 2025, the ratio markedly increases to 4.00, surpassing previous levels and indicating a renewed or increased use of debt relative to equity. This shift could be attributed to strategic financing decisions such as taking on additional debt to fund growth initiatives, acquisitions, or other capital expenditures.
Overall, the company's financial leverage ratio demonstrates periods of stability and decline, culminating in a significant rise at the end of the observed period. These movements reflect the company's evolving approach to leverage management, which may influence its risk profile, cost of capital, and financial flexibility.
Peer comparison
Jun 30, 2025