Pilgrims Pride Corp (PPC)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 16,433,800 | 16,823,600 | 16,303,100 | 14,593,400 | 11,869,600 |
| Payables | US$ in thousands | 1,298,160 | 1,319,960 | 1,587,940 | 1,378,080 | 1,028,710 |
| Payables turnover | 12.66 | 12.75 | 10.27 | 10.59 | 11.54 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $16,433,800K ÷ $1,298,160K
= 12.66
The payables turnover of Pilgrims Pride Corp has exhibited some fluctuation over the years. In 2020, the payables turnover ratio was 11.54 times, indicating that the company paid off its accounts payable approximately 11.54 times during that year. Subsequently, in 2021, the ratio decreased to 10.59 times, signifying a slightly slower turnover of payables compared to the previous year.
By the end of 2022, the payables turnover ratio further declined to 10.27 times, suggesting a continued trend of slower payments to suppliers or a potential increase in accounts payable balances relative to purchases. However, in 2023 and 2024, the payables turnover ratio showed an upward trend, reaching 12.75 times and 12.66 times, respectively. This improvement indicates that the company may have optimized its payment processes or managed its accounts payable more efficiently during these periods.
Overall, the trend in payables turnover for Pilgrims Pride Corp reflects varying levels of effectiveness in managing its trade credit obligations over the years. An increase in the payables turnover ratio generally indicates a more efficient management of accounts payable, whereas a decrease may signal delays in payment or an increase in outstanding payables.
Peer comparison
Dec 31, 2024