Pilgrims Pride Corp (PPC)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 17,845,240 | 17,920,260 | 17,637,730 | 17,321,630 | 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 |
| Total current assets | US$ in thousands | 5,120,160 | 5,055,470 | 4,512,150 | 4,171,880 | 4,204,470 | 4,429,220 | 4,364,830 | 3,822,590 | 3,891,620 | 4,032,920 | 3,999,220 | 3,792,820 | 3,305,950 | 3,241,710 | 3,129,300 | 2,875,990 | 2,902,710 | 3,057,870 | 2,802,990 | 2,860,180 |
| Total current liabilities | US$ in thousands | 2,552,130 | 2,587,430 | 2,484,340 | 2,279,740 | 2,495,870 | 2,531,320 | 2,542,360 | 2,493,750 | 2,570,170 | 2,607,820 | 2,470,960 | 2,475,780 | 2,390,820 | 2,270,930 | 2,244,710 | 1,711,560 | 1,937,580 | 1,695,450 | 1,485,360 | 1,516,080 |
| Working capital turnover | 6.95 | 7.26 | 8.70 | 9.15 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $17,845,240K ÷ ($5,120,160K – $2,552,130K)
= 6.95
The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate sales revenue. A higher turnover ratio generally suggests a more efficient use of working capital.
Analyzing the working capital turnover of Pilgrims Pride Corp over the specified periods, we observe fluctuations in the ratio. The ratio ranged from a low of 6.95 in December 31, 2024, to a high of 16.02 in December 31, 2021. This variability indicates changes in the company's ability to generate sales relative to its working capital.
Noteworthy peaks in the working capital turnover ratio were observed in December 31, 2021 (16.02) and June 30, 2021 (14.69), suggesting that the company efficiently utilized its working capital to generate sales during these periods. Conversely, the lowest ratios were observed in December 31, 2024 (6.95) and September 30, 2024 (7.26), indicating a less efficient utilization of working capital in those quarters.
Overall, Pilgrims Pride Corp's working capital turnover ratio has shown a fluctuating trend over the periods covered in the data. It would be beneficial for stakeholders to further investigate the reasons behind these fluctuations to assess the effectiveness of the company's working capital management strategies.
Peer comparison
Dec 31, 2024