Performance Food Group Co (PFGC)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 546,000 | 828,600 | 807,100 | 823,300 | 829,000 | 808,500 | 823,400 | 802,200 | 763,100 | 665,000 | 576,100 | 480,800 | 350,000 | 268,300 | 213,400 | 219,800 | 207,100 | -99,400 | -149,700 | -132,000 |
| Interest expense (ttm) | US$ in thousands | 358,400 | 321,500 | 281,700 | 242,900 | 232,200 | 230,600 | 229,400 | 223,700 | 218,000 | 209,800 | 199,800 | 189,300 | 182,900 | 173,500 | 164,700 | 157,600 | 152,400 | 152,000 | 150,100 | 138,400 |
| Interest coverage | 1.52 | 2.58 | 2.87 | 3.39 | 3.57 | 3.51 | 3.59 | 3.59 | 3.50 | 3.17 | 2.88 | 2.54 | 1.91 | 1.55 | 1.30 | 1.39 | 1.36 | -0.65 | -1.00 | -0.95 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $546,000K ÷ $358,400K
= 1.52
The interest coverage ratio for Performance Food Group Co exhibits a significant improvement over the period analyzed, reflecting a notable shift from negative to positive territory. During the fiscal year ending September 30, 2020, the ratio was recorded at -0.95, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses, suggesting a period of financial strain or high leverage. This negative trend persisted into December 31, 2020, with the ratio worsening slightly to -1.00.
Starting in the quarter ending March 31, 2021, the ratio improved to -0.65, moving closer to profitability in covering interest obligations. This upward trajectory continued throughout 2021 and into 2022, with the ratio turning positive at 1.36 in June 2021 and progressively increasing to 2.54 by September 2022. These positive figures indicate that the company's EBIT was sufficient to comfortably meet interest payments, reflecting strengthening earnings capacity and improved financial health.
Throughout 2022 and into 2023, the interest coverage ratio maintained a robust upward trend, reaching a peak of 3.59 in September 2023. This level of coverage suggests that EBIT significantly exceeds interest expenses, implying a comfortable margin for debt servicing and reduced financial risk.
In the subsequent periods extending into 2024 and 2025, the ratio remained relatively stable, albeit with a slight decline. By December 2024, it decreased to 2.87, and further to 1.52 in June 2025. Although the ratio has declined from its peak, it still remains above 1, indicating that the company continues to generate sufficient EBIT to cover interest obligations, albeit with a narrower margin.
In summary, the interest coverage for Performance Food Group Co has evolved from a period of negative or insufficient coverage at the onset of 2020, to strong positive coverage throughout 2022 and 2023, demonstrating a significant improvement in profitability and debt servicing ability. The decline observed in 2024 and the first half of 2025 suggests a potential normalization or slight easing of financial strength; however, the ratios remain above the critical threshold of 1, indicating ongoing ability to meet interest obligations.
Peer comparison
Jun 30, 2025