Pilgrims Pride Corp (PPC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 16,823,600 | 16,303,100 | 14,593,400 | 11,869,600 | 10,741,700 |
| Payables | US$ in thousands | 1,319,960 | 1,587,940 | 1,378,080 | 1,028,710 | 993,780 |
| Payables turnover | 12.75 | 10.27 | 10.59 | 11.54 | 10.81 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $16,823,600K ÷ $1,319,960K
= 12.75
The payables turnover ratio for Pilgrim`s Pride Corp. has shown a fluctuating trend over the past five years. The ratio increased from 11.50 in 2019 to 12.08 in 2020, signifying that the company was able to pay off its accounts payable more frequently in 2020. However, the ratio decreased to 10.14 in 2021 and then to 10.39 in 2022, indicating a slowdown in the rate at which the company is settling its accounts payable.
In 2023, the payables turnover ratio improved to 11.93, which suggests that the company managed to pay off its suppliers more efficiently compared to the previous year. Generally, a higher payables turnover ratio indicates that the company is managing its accounts payable effectively, negotiating better payment terms with suppliers, or managing its working capital more efficiently. Conversely, a lower ratio may suggest potential liquidity issues or inefficiencies in managing payables.
It is important for stakeholders to further investigate the reasons behind these fluctuations in the payables turnover ratio to gain a deeper understanding of Pilgrim`s Pride Corp.`s financial performance and its relationships with suppliers.
Peer comparison
Dec 31, 2023