Pilgrims Pride Corp (PPC)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 38.53 | 68.86 | 70.10 | 37.36 | 32.17 | 32.53 | 34.37 | 31.43 | 30.17 | 33.75 | 36.68 | 36.60 | 32.70 | 34.37 | 36.58 | 38.18 | 37.15 | 34.72 | 32.61 | 31.04 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 43.13 + 24.07 – 28.67
= 38.53
The cash conversion cycle of Pilgrim's Pride Corp. has shown a relatively stable trend over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 41.19 days, slightly higher compared to the previous quarter at 40.99 days. This indicates that Pilgrim's Pride is taking slightly longer to convert its invested resources into cash during the most recent quarter.
Looking at the trend over the past two years, there has been a gradual increase in the cash conversion cycle, from 33.59 days in Q1 2022 to 41.19 days in Q4 2023. This suggests that the company may be facing challenges in managing its working capital effectively or experiencing delays in collecting receivables and/or managing inventory.
Overall, Pilgrim's Pride Corp. should closely monitor its cash conversion cycle and take proactive measures to improve efficiency in managing its working capital to ensure optimal cash flow and financial performance in the future.
Peer comparison
Dec 31, 2023