Pilgrims Pride Corp (PPC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 697,748 | 400,988 | 427,661 | 547,624 | 260,568 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,129,180 | 1,097,210 | 1,013,440 | 741,992 | 741,281 |
| Total current liabilities | US$ in thousands | 2,495,870 | 2,570,170 | 2,390,820 | 1,937,580 | 1,648,160 |
| Quick ratio | 0.73 | 0.58 | 0.60 | 0.67 | 0.61 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($697,748K
+ $—K
+ $1,129,180K)
÷ $2,495,870K
= 0.73
The quick ratio of Pilgrim's Pride Corp. has shown some variation over the past five years. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio of less than 1 indicates that the company may have difficulty meeting its short-term obligations.
In 2023, the quick ratio improved to 0.88 from 0.73 in 2022, suggesting that the company may have strengthened its liquidity position. However, the ratio is still below 1, indicating that Pilgrim's Pride Corp. may have challenges in meeting its short-term obligations with its current liquid assets.
Overall, Pilgrim's Pride Corp. has shown some fluctuations in its quick ratio over the years, and management may need to continue monitoring and managing its liquidity position to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023