Pilgrims Pride Corp (PPC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 697,748 | 400,988 | 427,661 | 547,624 | 260,568 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,495,870 | 2,570,170 | 2,390,820 | 1,937,580 | 1,648,160 |
| Cash ratio | 0.28 | 0.16 | 0.18 | 0.28 | 0.16 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($697,748K
+ $—K)
÷ $2,495,870K
= 0.28
The cash ratio of Pilgrim`s Pride Corp. has fluctuated over the past five years, ranging from a low of 0.24 in December 2019 to a high of 0.38 in December 2020. The cash ratio measures the company's ability to cover its short-term liabilities using only its cash and cash equivalents. A higher cash ratio indicates a better ability to meet short-term obligations.
In December 2023, Pilgrim`s Pride Corp. had a cash ratio of 0.36, indicating that for every dollar of current liabilities, the company had $0.36 in cash and cash equivalents available to cover those obligations. This suggests a moderate level of liquidity, showing an improvement compared to the previous year.
It's important to note that while a high cash ratio demonstrates strong liquidity, excessively high levels of cash may also indicate that the company is not efficiently deploying its resources. On the other hand, a low cash ratio could signal potential difficulties in meeting short-term obligations.
Overall, Pilgrim`s Pride Corp.'s cash ratio of 0.36 in December 2023 reflects a reasonable level of liquidity, providing the company with some financial flexibility to manage its short-term obligations.
Peer comparison
Dec 31, 2023