Pilgrims Pride Corp (PPC)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 2.01 1.95 1.82 1.83 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
Quick ratio 1.20 1.14 0.95 0.84 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
Cash ratio 0.80 0.73 0.53 0.38 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

Pilgrims Pride Corp's liquidity ratios for the period under review show fluctuations. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has generally stayed above 1, indicating a healthy liquidity position. The current ratio ranged from a low of 1.38 to a high of 2.01 during the period, with an average of around 1.70.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also varied over time. It ranged from 0.56 to 1.20, with an average around 0.80. Despite some fluctuations, the quick ratio generally remained below the current ratio, suggesting that inventory could impact the company's ability to meet immediate payment obligations.

The cash ratio, which focuses solely on the most liquid assets like cash and cash equivalents, had a wider range of values, from 0.06 to 0.80. This indicates that Pilgrims Pride Corp's ability to cover its current liabilities with cash on hand fluctuated significantly during the period.

Overall, Pilgrims Pride Corp maintained a satisfactory level of liquidity over the period, as reflected in its current ratio consistently above 1 and generally improving trends in the quick and cash ratios. However, the company should continue monitoring these ratios to ensure it can meet its short-term obligations effectively.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 31.35 32.22 33.95 36.11 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

The cash conversion cycle of Pilgrims Pride Corp has shown some fluctuations over the past few years. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From a review of the data provided, we can observe that the cash conversion cycle for Pilgrims Pride Corp ranged from approximately 30 to 70 days over the period mentioned. A lower cash conversion cycle is generally better as it implies that the company is able to efficiently manage its working capital.

Pilgrims Pride Corp experienced a decrease in its cash conversion cycle from around 38 days in March 2020 to about 30 days in December 2021, indicating an improvement in the company's ability to convert its assets into cash. However, there was a slight increase in the cash conversion cycle in the following periods, with a peak of 70 days in June 2023 and 68 days in September 2023, which could suggest potential issues with managing inventory or accounts receivable during those periods.

Subsequently, the cash conversion cycle decreased to around 31 days by the end of December 2024, displaying a positive trend towards a more efficient conversion of resources into cash. Overall, Pilgrims Pride Corp should continue to focus on optimizing its cash conversion cycle to enhance liquidity and operational efficiency.