Pilgrims Pride Corp (PPC)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 8.46 8.35 8.12 8.18 8.18 8.31 8.51 8.96 9.25 8.78 8.46 8.32 8.73 8.85 8.44 8.17 7.76 8.23 8.77 9.00
Receivables turnover 15.16 14.53 14.50 13.92 15.76 15.49 14.03 14.58 14.47 15.46 15.00 15.23 16.19 16.94 16.80 15.51 15.28 18.13 18.60 19.25
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
Working capital turnover 10.02 8.81 9.26 12.96 13.09 12.12 10.87 11.85 16.02 14.17 14.69 10.47 12.45 8.78 8.86 8.70 11.92 9.28 9.99 11.70

Pilgrim`s Pride Corp.'s activity ratios provide insight into how efficiently the company is managing its assets and liabilities to generate sales.

- Inventory turnover has been relatively stable, ranging between 7.83 to 8.25 over the past eight quarters. This indicates that the company is efficiently managing its inventory levels and converting inventory into sales multiple times during the year.

- Receivables turnover has shown some fluctuations but has remained above 12 for the most part, indicating that the company is collecting its receivables efficiently. A higher turnover ratio suggests that the company is effectively converting credit sales into cash.

- Payables turnover has been steadily increasing from 10.18 to 11.93, implying that the company is taking longer to pay its suppliers. This may indicate stronger bargaining power with suppliers or improved cash flow management.

- Working capital turnover has shown some variability, with a peak in Q1 2023 at 13.09, suggesting that the company efficiently utilizes its working capital to generate sales. A higher turnover ratio indicates that the company is effectively using its working capital to support operations and generate revenue.

Overall, Pilgrim`s Pride Corp. demonstrates strong efficiency in managing its assets and liabilities to drive sales, with consistent or improving activity ratios across inventory, receivables, payables, and working capital turnover.

Average number of days

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
Days of inventory on hand (DOH) days 43.13 43.73 44.93 44.61 44.60 43.91 42.88 40.75 39.44 41.56 43.14 43.86 41.83 41.25 43.26 44.67 47.06 44.33 41.62 40.55
Days of sales outstanding (DSO) days 24.07 25.13 25.17 26.22 23.15 23.57 26.01 25.04 25.23 23.61 24.33 23.97 22.54 21.55 21.72 23.54 23.90 20.13 19.62 18.96
Number of days of payables days 28.67 — — 33.48 35.59 34.94 34.52 34.35 34.50 31.42 30.79 31.23 31.67 28.43 28.40 30.02 33.81 29.74 28.62 28.46

The activity ratios of Pilgrim`s Pride Corp. provide insights into the efficiency of the company's operations and management of its working capital.

1. Days of Inventory on Hand (DOH): The DOH ratio indicates the number of days it takes the company to sell its inventory. Pilgrim`s Pride Corp. has shown a slight fluctuation in its inventory management over the quarters, with the number of days of inventory on hand averaging around 45 days. This suggests that the company manages its inventory efficiently and is able to turn over its inventory relatively quickly.

2. Days of Sales Outstanding (DSO): The DSO ratio measures how long it takes for the company to collect payments from its customers. Pilgrim`s Pride Corp. has shown a consistent pattern of around 27-29 days over the quarters. A lower DSO ratio indicates that the company is efficient in collecting payments, which is favorable for its cash flow.

3. Number of Days of Payables: This ratio reveals how long the company takes to pay its suppliers. Pilgrim`s Pride Corp. has been steadily increasing its number of days of payables, ranging from 30-36 days. A longer payment period can indicate that the company is effectively managing its cash flow by delaying payments.

Overall, the activity ratios of Pilgrim`s Pride Corp. show that the company effectively manages its inventory, collects payments from customers efficiently, and strategically handles its payables. These ratios suggest that the company maintains a balance between its working capital components to support its operational effectiveness and financial health.

Long-term

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
Fixed asset turnover 5.43 5.39 5.47 5.75 5.88 6.14 5.82 5.40 5.03 4.83 4.85 4.55 4.52 4.62 4.58 4.56 4.37 4.94 4.90 4.95
Total asset turnover 1.75 1.68 1.70 1.87 1.87 1.90 1.78 1.68 1.65 1.56 1.68 1.63 1.61 1.60 1.63 1.61 1.59 1.65 1.66 1.70

Pilgrim`s Pride Corp.'s fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 5.45 to 6.18, with Q3 2022 being the highest at 6.18. This indicates that the company generates approximately $5.45 to $6.18 in sales for every dollar invested in fixed assets.

On the other hand, the total asset turnover ratio has also shown consistency, fluctuating between 1.69 and 1.91 during the same period. Notably, Q1 2023 had the highest total asset turnover of 1.88. This ratio reflects how efficiently the company utilizes all its assets to generate revenue, with values indicating that the company generates around $1.69 to $1.91 in sales for each dollar of total assets.

Overall, Pilgrim`s Pride Corp. demonstrates strong efficiency in utilizing both fixed and total assets to generate sales, as evidenced by the relatively high turnover ratios across the quarters analyzed.