Pilgrims Pride Corp (PPC)

Liquidity ratios

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
Current ratio 1.68 1.75 1.72 1.53 1.51 1.55 1.62 1.53 1.38 1.43 1.39 1.68 1.50 1.80 1.89 1.89 1.58 1.82 1.78 1.68
Quick ratio 0.73 0.81 0.75 0.56 0.58 0.68 0.76 0.73 0.60 0.62 0.56 0.68 0.67 0.87 0.81 0.83 0.61 0.83 0.80 0.69
Cash ratio 0.28 0.36 0.29 0.06 0.16 0.25 0.28 0.29 0.18 0.23 0.17 0.21 0.28 0.45 0.34 0.34 0.16 0.42 0.39 0.28

The current ratio of Pilgrim`s Pride Corp. has been relatively stable over the past eight quarters, ranging from 1.51 to 1.75. This indicates that the company has generally been able to cover its short-term obligations with its current assets. However, a current ratio below 2.0 may suggest potential challenges in meeting its short-term liabilities comfortably.

The quick ratio, which excludes inventory from current assets, has shown a similar trend to the current ratio, with values ranging from 0.71 to 0.95. This suggests that the company may have some difficulty meeting its short-term obligations without relying on inventory liquidity.

The cash ratio, which is the most conservative liquidity measure, has varied significantly from quarter to quarter, ranging from 0.15 to 0.44. A cash ratio below 0.2 may indicate a risk of liquidity issues, as it suggests that the company has limited cash to cover its current liabilities.

Overall, while the current and quick ratios show that Pilgrim`s Pride Corp. has generally been able to meet its short-term obligations, the fluctuating cash ratio highlights the importance of closely monitoring the company's cash position to ensure its ability to cover immediate financial needs.

Additional liquidity measure

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
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

The cash conversion cycle of Pilgrim`s Pride Corp. has been relatively stable over the past eight quarters, ranging from 33.59 days to 41.82 days. The company takes an average of around 40 days to convert its investments in inventory and other resources into cash from sales.

The cash conversion cycle is a critical metric in evaluating the efficiency of a company's operations and its ability to manage working capital effectively. A longer cash conversion cycle may indicate that the company is taking longer to sell its inventory or collect payments from customers, tying up capital in the process.

Pilgrim`s Pride Corp. should aim to optimize its cash conversion cycle by improving inventory management, streamlining its sales and collection processes, and negotiating better payment terms with suppliers and customers. This can help the company free up working capital and improve its overall financial performance.