Performance Food Group Co (PFGC)
Solvency ratios
| Sep 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.27 | 0.25 | 0.27 | 0.29 | 0.28 | 0.29 | 0.30 | 0.30 | 0.32 | 0.31 | 0.32 | 0.32 | 0.29 | 0.29 | 0.33 | 0.33 | 0.29 | 0.40 | 0.36 | 0.36 |
| Debt-to-capital ratio | 0.48 | 0.45 | 0.48 | 0.49 | 0.48 | 0.50 | 0.51 | 0.52 | 0.54 | 0.54 | 0.55 | 0.54 | 0.52 | 0.51 | 0.55 | 0.56 | 0.53 | 0.64 | 0.61 | 0.62 |
| Debt-to-equity ratio | 0.93 | 0.81 | 0.91 | 0.97 | 0.92 | 0.99 | 1.05 | 1.08 | 1.18 | 1.16 | 1.22 | 1.17 | 1.06 | 1.04 | 1.23 | 1.26 | 1.12 | 1.75 | 1.59 | 1.66 |
| Financial leverage ratio | 3.42 | 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 |
Performance Food Group Co's solvency ratios, including the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, show the company's ability to meet its financial obligations and fund its operations through a combination of debt and equity.
The debt-to-assets ratio has been relatively stable, ranging from 0.25 to 0.33 over the past few quarters, indicating that about 25% to 33% of the company's assets are financed by debt. This suggests that Performance Food Group Co has a moderate level of leverage and is not overly reliant on debt to fund its operations.
The debt-to-capital ratio, which measures the proportion of total capital that comes from debt, has also been consistent, hovering around 0.45 to 0.56. This indicates that around 45% to 56% of the company's capital structure is comprised of debt, with the rest coming from equity. The stable trend suggests a balanced mix of debt and equity financing.
The debt-to-equity ratio has shown some variability, ranging from 0.81 to 1.75. The ratio trending towards or above 1 indicates that the company has higher levels of debt relative to equity, signaling higher financial risk. However, the ratio has fluctuated, indicating changes in the company's capital structure over time.
The financial leverage ratio, which measures the extent to which the company is using debt to finance its assets, has also shown some fluctuations, ranging from 3.26 to 4.62. A higher financial leverage ratio suggests higher financial risk and potential instability if economic conditions deteriorate.
Overall, Performance Food Group Co's solvency ratios indicate a reasonable level of financial stability with a balanced mix of debt and equity financing. However, fluctuations in certain ratios highlight the importance of monitoring the company's capital structure and debt levels to ensure sustainable financial health.
Coverage ratios
| Sep 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.15 | 3.51 | 3.58 | 3.58 | 3.50 | 3.16 | 2.88 | 2.54 | 1.91 | 1.55 | 1.30 | 1.39 | 1.36 | -0.65 | -1.00 | -0.95 | -0.90 | 2.28 | 3.93 | 4.42 |
Performance Food Group Co's interest coverage ratio has been fluctuating over the past few quarters. The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt with its earnings before interest and taxes (EBIT). A higher ratio indicates a stronger ability to cover interest expenses.
The trend in Performance Food Group Co's interest coverage shows improvement from negative figures in the previous quarters to positive ratios in the most recent periods. This indicates a positive development in the company's ability to cover its interest obligations from its operational earnings.
However, the interest coverage ratio has been volatile, ranging from as low as -1.00 to as high as 4.42. This volatility suggests fluctuations in the company's earnings and/or interest expenses, which may warrant further investigation into the root causes.
Overall, while the recent positive trend in interest coverage is a good sign, investors and analysts may want to keep an eye on the company's financial performance and debt management practices to ensure continued improvement in its ability to meet interest obligations.