Pilgrims Pride Corp (PPC)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 522,286 | 260,463 | 393,292 | 805,925 | 1,176,595 | 1,309,173 | 1,090,748 | 454,713 | 211,164 | 195,610 | 169,121 | 319,541 | 245,463 | 291,755 | 385,652 | 637,913 | 690,569 | 628,412 | 525,573 | 431,135 |
| Total assets | US$ in thousands | 9,810,360 | 9,927,820 | 9,922,510 | 9,227,500 | 9,255,770 | 9,079,010 | 9,322,930 | 9,317,870 | 8,913,200 | 8,832,840 | 7,748,840 | 7,480,760 | 7,474,500 | 7,469,500 | 7,156,580 | 7,251,980 | 7,102,360 | 6,603,130 | 6,527,920 | 6,372,930 |
| Operating ROA | 5.32% | 2.62% | 3.96% | 8.73% | 12.71% | 14.42% | 11.70% | 4.88% | 2.37% | 2.21% | 2.18% | 4.27% | 3.28% | 3.91% | 5.39% | 8.80% | 9.72% | 9.52% | 8.05% | 6.77% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $522,286K ÷ $9,810,360K
= 5.32%
Operating return on assets (ROA) is a key financial ratio that indicates how efficiently a company is generating operating profits relative to its total assets. In the case of Pilgrim's Pride Corp., the operating ROA has fluctuated over the past eight quarters, as shown in the table.
In Q4 2023, the company's operating ROA was 5.78%, a slight increase from the previous quarter but lower than the levels seen in Q1 and Q2 2023. This suggests that Pilgrim's Pride Corp. generated operating profits equivalent to 5.78% of its total assets during the period.
The trend in operating ROA for Pilgrim's Pride Corp. shows a decline from the high levels of 13.04% in Q4 2022 and 14.48% in Q3 2022. This decrease may indicate challenges in effectively utilizing its assets to generate operating income in recent quarters.
Overall, while Pilgrim's Pride Corp. has maintained positive operating ROA figures throughout the period, the fluctuating trend suggests the company may need to focus on optimizing asset utilization to enhance operational efficiency and profitability in the future. Further analysis and comparison with industry benchmarks could provide more insights into the company's performance.
Peer comparison
Dec 31, 2023