Pilgrims Pride Corp (PPC)
Working capital 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 |
| Total current assets | US$ in thousands | 4,204,470 | 3,891,620 | 3,305,950 | 2,902,710 | 2,598,240 |
| Total current liabilities | US$ in thousands | 2,495,870 | 2,570,170 | 2,390,820 | 1,937,580 | 1,648,160 |
| Working capital turnover | 10.02 | 13.09 | 16.00 | 12.43 | 11.89 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $17,112,600K ÷ ($4,204,470K – $2,495,870K)
= 10.02
Pilgrim's Pride Corp.'s working capital turnover has shown fluctuations over the past five years, indicating variations in how efficiently the company is utilizing its working capital to generate revenue. In 2023, the working capital turnover ratio was 10.16, a decrease from the previous year's ratio of 13.22. This suggests that the company may have been less efficient in using its working capital to drive sales during the year.
Comparing 2023 to 2021 and 2020, the working capital turnover ratios were 16.15 and 12.53, respectively, showing a peak in efficiency in 2021 and a slight dip in 2020. This indicates that the company was able to generate higher sales relative to its working capital in 2021 compared to the surrounding years.
Furthermore, looking at 2019, the working capital turnover ratio was 12.01, indicating a comparable efficiency level to 2020 but lower than 2021. Overall, Pilgrim's Pride Corp. should monitor its working capital turnover closely to ensure optimal use of capital resources to drive sales and profitability in the future.
Peer comparison
Dec 31, 2023