Performance Food Group Co (PFGC)

Solvency ratios

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
Debt-to-assets ratio 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 0.26
Debt-to-capital ratio 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 0.48
Debt-to-equity ratio 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 0.93
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

Performance Food Group Co's solvency ratios show a mixed trend over the past several quarters. The debt-to-assets ratio has fluctuated slightly but generally remained below 0.35, indicating that the company has been able to manage its debt levels relative to its total assets.

The debt-to-capital and debt-to-equity ratios have shown a slight upward trend, reaching their peak in recent quarters. This suggests that the company has been relying more on debt financing in relation to its capital structure and shareholder equity. The increasing levels of debt relative to capital and equity could potentially indicate a higher financial risk for the company.

The financial leverage ratio has also been on the rise, reaching its highest point in the most recent quarters. This ratio measures the extent to which the company is using debt to finance its assets, and the increasing trend indicates growing financial leverage, which may raise concerns about the company's ability to meet its debt obligations in the long term.

Overall, Performance Food Group Co's solvency ratios suggest a moderate level of debt relative to its assets, capital, and equity, but the increasing trend in debt ratios and financial leverage warrants careful monitoring to ensure the company's financial stability and ability to meet its debt obligations.

Coverage ratios

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
Interest coverage 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 4.34

Performance Food Group Co's interest coverage has shown variability over the past few quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a better ability to meet interest payments.

From Mar 31, 2019, to Sep 30, 2020, the interest coverage ratio ranged from 2.28 to 4.42, indicating a relatively strong ability to cover interest expenses. However, from Mar 31, 2021, to Mar 31, 2023, the ratio experienced a decline, with values ranging from 1.30 to 3.16. This could potentially signify increased pressure on the company's ability to cover its interest payments during these periods.

Notably, the interest coverage ratio turned negative in the last quarters of 2020 and the first quarters of 2021 before recovering and stabilizing above 1 from Jun 30, 2021, onwards. A negative interest coverage ratio suggests that the company's operating income was insufficient to cover interest expenses.

Overall, investors and creditors should closely monitor Performance Food Group Co's interest coverage ratio to assess its financial health and ability to meet its debt obligations. Declining or negative ratios could indicate financial distress, while improving ratios may signal better financial stability.