Performance Food Group Co (PFGC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.00 | 3.95 | 4.02 | 3.42 | 3.25 | 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 |
The analysis of Performance Food Group Co’s solvency ratios over the period from September 30, 2020, through June 30, 2025, reveals significant insights into the company's financial leverage and capital structure, albeit with notable limitations due to the absence of debt.
Firstly, the debt-to-assets ratio consistently registers at 0.00 throughout all observed periods, indicating that the company's total liabilities are negligible relative to its total assets. This suggests an extremely conservative leverage profile, with the company not utilizing debt financing in a manner that reflects on the balance sheet. Similarly, the debt-to-capital ratio remains at 0.00 across all dates, reinforcing the inference that debt constitutes no part of the company's capital structure during this timeframe.
Furthermore, the debt-to-equity ratio is perpetually zero, implying an absence of debt relative to shareholders' equity and confirming that the company's equity is fully financed through retained earnings or equity contributions without leveraging debt.
Conversely, the financial leverage ratio provides a different perspective. It ranges from 3.83 at the end of September 2020, gradually decreasing to approximately 3.25 by June 2024, with slight fluctuations subsequently. This ratio measures the extent to which assets are financed through shareholders’ equity and is generally interpreted as an indicator of how much financial leverage the company employs. The high leverage ratio, despite the zero debt ratios, suggests that the company’s assets are predominantly financed by equity, and the leverage ratio may reflect retained earnings and other internal sources of capital rather than debt.
Overall, the combined data indicates that Performance Food Group Co maintained an essentially debt-free capital structure over the analyzed periods, with minimal to no reliance on borrowed funds. Its financial leverage ratios, consistently above 3, reflect significant utilization of equity to finance its assets, and the absence of debt ratios suggests that the company’s solvency is not contingent on debt servicing or leverage but rather on its equity capital base.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The analysis of Performance Food Group Co.’s interest coverage ratios over the specified period reveals a trajectory characterized initially by negative values, followed by a consistent strengthening trend. Specifically, as of September 30, 2020, the interest coverage ratio stood at -0.95, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses, reflecting a period of financial strain or significant losses. This negative ratio persisted through the end of 2020, with December 31, 2020, registering at -1.00, and the first quarter of 2021 showing an improvement to -0.65.
Beginning in June 2021, the company experienced a notable improvement, with the interest coverage ratio turning positive at 1.36, signifying that earnings were sufficient to cover interest obligations. The ratio demonstrated a steady upward trend over the subsequent quarters, reaching 1.39 on September 30, 2021, and remaining relatively stable through December 2021 at 1.30. This upward momentum continued into 2022, with ratios increasing to 1.55 in March and further to 1.91 in June. By September 2022, the ratio had increased to 2.54, indicating that the company’s earnings were about two and a half times its interest expense, reflecting a significant strengthening in its financial health.
The positive trend persisted into late 2022 and early 2023, with ratios rising to 2.88 in December 2022, and further improving to 3.17 in March and 3.50 in June 2023. The ratio slightly increased to 3.59 by September 2023, implying a comfortable buffer of earnings over interest expenses. This elevated level decreased marginally in the subsequent quarters, remaining around 3.51 in March 2024, 3.57 in June 2024, and slightly lower at 3.39 in September 2024.
Moving into 2025, the ratio exhibits a decline, dropping to 2.87 in December and further to 2.58 in March, with a notable decrease to 1.52 projected for June 2025. This decline suggests a reduction in the company's earnings relative to its interest obligations, potentially due to evolving operational or financial conditions.
Overall, the interest coverage ratio trajectory reflects a period of initial financial difficulty in late 2020, followed by substantial recovery and stabilization through late 2022 and into 2023. The ratios indicate that the company transitioned from negative coverage, indicative of earnings deficits, to comfortably covering interest expenses multiple times over, demonstrating improved profitability and financial stability. However, the modest decline projected for mid-2025 warrants attention as it may signal emerging pressures on the company’s earnings capacity to cover interest obligations.