Pilgrims Pride Corp (PPC)
Solvency 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.30 | 0.00 | 0.00 | 0.00 | 0.34 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.43 | 0.00 | 0.00 | 0.00 | 0.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.76 | 0.00 | 0.00 | 0.00 | 1.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.51 | 2.54 | 2.70 | 2.81 | 2.94 | 3.23 | 3.24 | 3.19 | 3.26 | 3.33 | 3.26 | 3.35 | 3.46 | 3.39 | 3.00 | 2.75 | 2.92 | 3.09 | 3.03 | 2.94 |
Pilgrims Pride Corp's solvency ratios provide insights into the company's ability to meet its financial obligations and manage its debt levels. Let's analyze the key solvency ratios based on the provided data:
1. Debt-to-assets ratio:
- The debt-to-assets ratio indicates the proportion of a company's assets funded by debt.
- Pilgrims Pride Corp's debt-to-assets ratio remained consistently low at 0.00% from March 2020 to June 2024, with a sudden increase to 0.34% by December 2023. This suggests a conservative approach to debt financing and a strong asset base to support operations.
2. Debt-to-capital ratio:
- The debt-to-capital ratio reflects the extent of a company's capital structure financed by debt.
- Pilgrims Pride Corp maintained a negligible debt-to-capital ratio at 0.00% until December 2023 when it rose to 0.50%, indicating a slight increase in debt relative to capital. The ratio decreased to 0.43% by December 2024, implying a reduction in debt relative to the overall capital structure.
3. Debt-to-equity ratio:
- The debt-to-equity ratio evaluates the proportion of debt and equity in a company's capital structure.
- Pilgrims Pride Corp's debt-to-equity ratio remained stable at 0.00% until a significant increase to 1.00% by December 2023, signaling a higher reliance on debt financing relative to equity. The ratio declined to 0.76% by December 2024, indicating a decrease in the debt component relative to equity.
4. Financial leverage ratio:
- The financial leverage ratio measures the extent to which a company utilizes debt in its capital structure.
- Pilgrims Pride Corp's financial leverage ratio fluctuated over the years, ranging from 2.51 to 3.46. The ratio decreased to 2.51 by December 2024, suggesting a lower dependency on debt to finance operations compared to previous periods.
In conclusion, Pilgrims Pride Corp has maintained a conservative approach to debt management, with low debt levels relative to assets, capital, and equity. The company has shown fluctuations in its financial leverage ratio, indicating varying degrees of debt utilization over the analyzed period. Overall, the solvency ratios suggest that Pilgrims Pride Corp has maintained a stable financial position with prudent debt management practices.
Coverage 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.76 | 8.14 | 6.28 | 3.96 | 2.80 | 1.44 | 2.40 | 5.18 | 7.71 | 9.18 | 7.92 | 3.06 | 1.63 | 1.42 | 1.17 | 2.55 | 2.28 | 3.04 | 3.79 | 5.69 |
The interest coverage ratio of Pilgrims Pride Corp has fluctuated over the periods provided. It indicates the company's ability to meet its interest obligations with its operating income. A higher ratio signifies the company is more capable of servicing its debt.
From March 31, 2020, to September 30, 2021, the interest coverage ratio declined steadily, indicating a potential strain on the company's ability to cover interest payments with its operating income during that time frame.
However, starting from March 31, 2022, the interest coverage ratio showed a positive trend, increasing notably by June 30, 2022, and continuing to rise until December 31, 2024. These improvements suggest that Pilgrims Pride Corp's ability to cover its interest expenses improved significantly, reflecting a stronger financial position and better debt servicing capabilities.
Overall, Pilgrims Pride Corp's interest coverage ratio has shown both periods of weakness and strength, underscoring the importance of monitoring this ratio to assess the company's financial health and ability to manage its debt obligations effectively.