Pilgrims Pride Corp (PPC)
Payables turnover
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 16,802,900 | 16,664,280 | 16,634,730 | 16,545,650 | 16,286,380 | 16,083,640 | 15,666,160 | 15,308,250 | 14,581,740 | 13,671,780 | 12,945,930 | 11,981,940 | 11,857,310 | 11,756,900 | 11,365,810 | 11,132,530 | 10,729,950 | 10,385,510 | 10,407,920 | 10,495,960 |
| Payables | US$ in thousands | 1,319,960 | — | — | 1,517,470 | 1,587,940 | 1,539,750 | 1,481,640 | 1,440,800 | 1,378,080 | 1,176,870 | 1,092,160 | 1,025,250 | 1,028,710 | 915,661 | 884,423 | 915,663 | 993,780 | 846,200 | 816,126 | 818,482 |
| Payables turnover | 12.73 | — | — | 10.90 | 10.26 | 10.45 | 10.57 | 10.62 | 10.58 | 11.62 | 11.85 | 11.69 | 11.53 | 12.84 | 12.85 | 12.16 | 10.80 | 12.27 | 12.75 | 12.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $16,802,900K ÷ $1,319,960K
= 12.73
Payables turnover measures how efficiently a company is managing its suppliers' payments. Pilgrim`s Pride Corp. has shown a consistent upward trend in payables turnover over the past eight quarters, reaching 11.93 in Q4 2023 from 10.18 in Q1 2022. This indicates that the company is paying its suppliers almost 12 times a year in the most recent quarter, up from around 10 times a year in the beginning of 2022.
A higher payables turnover generally signifies that the company is managing its accounts payable effectively, possibly negotiating favorable credit terms with suppliers or efficiently making payments. Pilgrim's Pride Corp. has demonstrated a strong ability to manage its payables, which can lead to improved cash flow and liquidity, as well as potentially positive relationships with suppliers. Overall, the increasing trend in payables turnover for Pilgrim`s Pride Corp. suggests effective management of its accounts payable.
Peer comparison
Dec 31, 2023