Pilgrims Pride Corp (PPC)
Quick ratio
| 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 | US$ in thousands | 697,748 | 899,460 | 730,980 | 150,687 | 400,988 | 654,213 | 682,126 | 725,540 | 427,661 | 511,084 | 391,805 | 367,015 | 547,624 | 768,031 | 507,442 | 511,183 | 260,568 | 598,054 | 538,227 | 378,518 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,129,180 | 1,151,440 | 1,163,420 | 1,237,370 | 1,097,210 | 1,115,160 | 1,184,220 | 1,071,100 | 1,013,440 | 889,586 | 866,476 | 800,838 | 741,992 | 706,123 | 694,845 | 754,246 | 741,281 | 602,038 | 582,296 | 564,055 |
| Total current liabilities | US$ in thousands | 2,495,870 | 2,531,320 | 2,542,360 | 2,493,750 | 2,570,170 | 2,607,820 | 2,470,960 | 2,475,780 | 2,390,820 | 2,270,930 | 2,244,710 | 1,711,560 | 1,937,580 | 1,695,450 | 1,485,360 | 1,516,080 | 1,648,160 | 1,437,740 | 1,392,630 | 1,357,730 |
| 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 |
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 measures a company's ability to meet its short-term obligations with its most liquid assets.
Based on the information provided, we can observe fluctuations in Pilgrim's Pride Corp.'s quick ratio over the past eight quarters. The quick ratio ranged from 0.71 to 0.95 during this period, reflecting varying levels of liquidity.
The quick ratio decreased from Q1 2023 (0.95) to Q4 2023 (0.88), indicating a slight reduction in the company's ability to cover its current liabilities with its quick assets. However, the quick ratio remained relatively stable within a range of 0.79 to 0.95 since Q1 2022.
Overall, the quick ratio indicates that Pilgrim's Pride Corp. has maintained a reasonable level of liquidity to meet its short-term obligations, even though there have been fluctuations in the ratio over the past two years. It is essential for the company to continue monitoring and managing its liquidity position effectively to ensure it can meet its financial commitments in a timely manner.
Peer comparison
Dec 31, 2023