Pilgrims Pride Corp (PPC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,112,600 | 17,295,900 | 14,639,400 | 11,996,600 | 11,295,500 |
| Receivables | US$ in thousands | 1,129,180 | 1,097,210 | 1,013,440 | 741,992 | 741,281 |
| Receivables turnover | 15.15 | 15.76 | 14.45 | 16.17 | 15.24 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $17,112,600K ÷ $1,129,180K
= 15.15
The receivables turnover ratio of Pilgrim's Pride Corp. has shown a decreasing trend over the past five years. The ratio decreased from 14.22 in 2019 to 13.44 in 2023. This indicates that the company's ability to collect its accounts receivable has slightly declined over the period.
A lower receivables turnover ratio may suggest that the company is taking a longer time to collect payments from its customers, which could potentially lead to cash flow issues. It may also indicate changes in the company's credit policies or the quality of its accounts receivable.
It is important for Pilgrim's Pride Corp. to monitor its receivables turnover ratio closely and take necessary actions to improve it if needed, such as implementing stricter credit policies, improving collection processes, or addressing any issues with customer creditworthiness.
Peer comparison
Dec 31, 2023