Pilgrims Pride Corp (PPC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,040,830 | 697,748 | 400,988 | 427,661 | 547,624 |
| Short-term investments | US$ in thousands | 10,220 | 33,475 | — | — | — |
| Total current liabilities | US$ in thousands | 2,552,130 | 2,495,870 | 2,570,170 | 2,390,820 | 1,937,580 |
| Cash ratio | 0.80 | 0.29 | 0.16 | 0.18 | 0.28 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,040,830K
+ $10,220K)
÷ $2,552,130K
= 0.80
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. For Pilgrims Pride Corp, the cash ratio fluctuated over the years as follows:
- As of December 31, 2020, the cash ratio was 0.28, indicating that the company had 28 cents of cash for every dollar of short-term liabilities.
- By December 31, 2021, the cash ratio decreased to 0.18, suggesting a lower liquidity position compared to the previous year.
- The cash ratio further declined to 0.16 as of December 31, 2022, signaling potential challenges in meeting short-term obligations with cash on hand.
- However, there was a significant improvement in liquidity by December 31, 2023, with the cash ratio increasing to 0.29.
- The most recent data as of December 31, 2024, shows a substantial improvement in liquidity, with the cash ratio standing at 0.80, indicating a strong ability to cover short-term liabilities with cash reserves.
Overall, the cash ratio trend for Pilgrims Pride Corp reflects fluctuations in liquidity levels, with significant improvements in certain years and challenges in others. Investing further analysis into the underlying reasons for these variations can provide valuable insights into the company's financial health and management of cash resources.
Peer comparison
Dec 31, 2024