Pilgrims Pride Corp (PPC)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,120,160 | 4,204,470 | 3,891,620 | 3,305,950 | 2,902,710 |
| Total current liabilities | US$ in thousands | 2,552,130 | 2,495,870 | 2,570,170 | 2,390,820 | 1,937,580 |
| Current ratio | 2.01 | 1.68 | 1.51 | 1.38 | 1.50 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,120,160K ÷ $2,552,130K
= 2.01
Over the past five years, Pilgrims Pride Corp's current ratio has shown a fluctuating trend. Starting from 1.50 in December 2020, the current ratio decreased slightly to 1.38 by December 2021. However, there was a positive uptick in the ratio in the subsequent years, reaching 1.51 by December 2022, 1.68 by December 2023, and finally, a significant increase to 2.01 by December 2024.
The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. A higher current ratio indicates a stronger ability to meet short-term obligations, which can be a positive indicator of financial health and liquidity. In this case, the upward trend in Pilgrims Pride Corp's current ratio from 2021 to 2024 suggests an improvement in the company's liquidity position over the years, potentially due to better management of current assets and liabilities.
While the current ratio is just one metric and should be analyzed alongside other financial indicators, Pilgrims Pride Corp's increasing current ratio over the years may indicate enhanced liquidity and a more robust financial position, which could be viewed positively by investors and creditors.
Peer comparison
Dec 31, 2024