Performance Food Group Co (PFGC)
Financial leverage ratio
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,499,000 | 12,378,000 | 7,845,700 | 7,719,700 | 4,653,500 |
| Total stockholders’ equity | US$ in thousands | 3,745,500 | 3,299,500 | 2,106,100 | 2,010,600 | 1,298,200 |
| Financial leverage ratio | 3.34 | 3.75 | 3.73 | 3.84 | 3.58 |
June 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,499,000K ÷ $3,745,500K
= 3.34
The financial leverage ratio of Performance Food Group Co has exhibited fluctuations over the past five years. The ratio decreased from 3.58 in 2019 to 3.34 in 2023, suggesting a reduction in the company's reliance on debt to finance its operations and growth. In 2020, there was a peak in the financial leverage ratio at 3.84, indicating a higher level of debt utilization compared to the surrounding years.
Overall, the downward trend in the financial leverage ratio from 2019 to 2023 indicates that Performance Food Group Co has been gradually reducing its financial risk and increasing its financial stability by either reducing debt levels or increasing equity in its capital structure. However, the company still maintains a relatively high leverage ratio above 3, implying that a significant portion of its capital structure is funded by debt rather than equity. Investors and stakeholders should monitor these trends to assess the company's ability to manage its debt obligations and maintain a healthy financial position.
Peer comparison
Jun 30, 2023