Performance Food Group Co (PFGC)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,873,900 | 12,912,500 | 12,903,200 | 12,499,000 | 12,189,500 | 12,189,600 | 12,168,600 | 12,378,000 | 11,979,600 | 11,956,400 | 11,581,700 | 7,845,700 | 7,449,800 | 7,493,700 | 7,739,900 | 7,719,700 | 7,870,800 | 6,111,100 | 6,163,000 | 4,653,500 |
| 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 |
| Financial leverage ratio | 3.26 | 3.34 | 3.37 | 3.34 | 3.40 | 3.49 | 3.58 | 3.75 | 3.74 | 3.78 | 3.71 | 3.73 | 3.62 | 3.66 | 3.83 | 3.84 | 4.32 | 4.43 | 4.62 | 3.58 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,873,900K ÷ $3,953,400K
= 3.26
The financial leverage ratio of Performance Food Group Co has exhibited some fluctuation over the past few quarters. As of March 31, 2024, the financial leverage ratio stood at 3.26, showing a slight decrease compared to the previous quarter. However, when analyzing the trend over the past several quarters, it is evident that the ratio has been gradually decreasing since reaching a peak of 4.62 in June 2019.
A financial leverage ratio above 1 indicates a higher level of debt in relation to equity, and a ratio of 3.26 suggests that Performance Food Group Co is utilizing significant leverage in its capital structure. While a high financial leverage ratio can amplify returns on equity, it also increases financial risk and potential volatility in earnings.
It is important for investors and stakeholders to monitor the financial leverage ratio of Performance Food Group Co closely to assess the company's ability to meet its debt obligations and manage its financial risk effectively. The decreasing trend in the ratio may indicate efforts to deleverage the company's balance sheet, which could lead to a more stable financial position in the future.
Peer comparison
Mar 31, 2024