Pilgrims Pride Corp (PPC)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 16,391,010 | 16,649,630 | 16,726,830 | 16,816,130 | 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 |
| Payables | US$ in thousands | 1,298,160 | 1,303,000 | 1,242,340 | 1,217,340 | 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 |
| Payables turnover | 12.63 | 12.78 | 13.46 | 13.81 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $16,391,010K ÷ $1,298,160K
= 12.63
The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times during a period the company pays off its suppliers. A higher turnover ratio indicates a company is paying its suppliers more frequently.
For Pilgrims Pride Corp, the payables turnover ratio fluctuated over the analyzed period. It ranged from a high of 13.81 in March 31, 2024 to a low of 10.26 in December 31, 2022. The average payables turnover ratio for the period was approximately 11.77.
The trend in the payables turnover ratio shows a gradual decrease over the period, indicating a lengthening in the time taken by the company to pay its suppliers. This could signal potential cash flow issues or changes in the company's payment policies. It would be beneficial for Pilgrims Pride Corp to closely monitor this ratio and investigate the underlying causes driving the decrease in payables turnover.
Overall, the payables turnover ratio provides insights into the company's supplier management and liquidity position. Pilgrims Pride Corp may need to evaluate its payables management practices to optimize its working capital efficiency and maintain healthy relationships with its suppliers.
Peer comparison
Dec 31, 2024