Pilgrims Pride Corp (PPC)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 17,121,930 | 16,725,710 | 16,871,300 | 17,222,890 | 17,295,990 | 17,269,750 | 16,618,380 | 15,613,130 | 14,664,000 | 13,755,120 | 12,996,470 | 12,195,720 | 12,013,720 | 11,959,380 | 11,675,740 | 11,696,170 | 11,323,080 | 10,916,380 | 10,833,440 | 10,859,590 |
| Receivables | US$ in thousands | 1,129,180 | 1,151,440 | 1,163,420 | 1,237,370 | 1,097,210 | 1,115,160 | 1,184,220 | 1,071,100 | 1,013,440 | 889,586 | 866,476 | 800,838 | 741,992 | 706,123 | 694,845 | 754,246 | 741,281 | 602,038 | 582,296 | 564,055 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $17,121,930K ÷ $1,129,180K
= 15.16
The receivables turnover ratio measures how efficiently a company is able to collect cash from its customers. It is calculated by dividing net annual credit sales by the average accounts receivable balance. A higher receivables turnover ratio indicates that the company is able to collect cash from its customers more quickly.
In the case of Pilgrim`s Pride Corp., the receivables turnover ratio has been fluctuating over the past eight quarters. The ratio ranged from a low of 12.57 in Q1 2023 to a high of 14.65 in Q3 2022.
The average receivables turnover ratio over this period was approximately 13.69, indicating that, on average, Pilgrim`s Pride Corp. collects cash from its customers approximately 13.69 times a year.
A steady or increasing trend in the receivables turnover ratio is generally positive, as it suggests that the company is able to collect cash from its customers more efficiently. However, a declining trend may indicate issues with collecting receivables promptly, which could lead to cash flow problems.
Investors and analysts should monitor Pilgrim`s Pride Corp.'s receivables turnover ratio over time to assess the company's ability to efficiently collect cash from its customers and manage its working capital effectively.
Peer comparison
Dec 31, 2023