Pilgrims Pride Corp (PPC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 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 | 2.81 | 2.85 | 2.88 | 2.99 |
Pilgrim's Pride Corp.'s solvency ratios provide insight into the company's ability to meet its long-term financial obligations. Looking at the trend in the debt-to-assets ratio over the past eight quarters, we can see a relatively stable picture with values ranging from 0.35 to 0.38. This indicates that, on average, 35%-38% of the company's assets are financed by debt, suggesting a moderate level of leverage.
The debt-to-capital ratio shows a similar trend, hovering around 0.51 to 0.55, which implies that debt accounts for around 51%-55% of the company's capital structure. This ratio portrays the extent to which debt is used to finance operations, with Pilgrim's Pride maintaining a stable debt-to-capital structure.
Additionally, examining the debt-to-equity ratio, which reflects the proportion of debt financing compared to equity, we observe fluctuations from 1.03 to 1.25 over the past two years. The rising trend in this ratio indicates increased reliance on debt financing relative to equity, suggesting higher financial risk as more of the company's assets are funded by debt.
The financial leverage ratio, which measures the company's total assets relative to shareholder equity, also shows an upward trend from 2.94 to 3.35 over the same period. This indicates that Pilgrim's Pride has been increasingly reliant on debt to finance its operations, potentially magnifying returns but also heightening financial risk.
Overall, the company's solvency ratios suggest a consistent reliance on debt financing, with a moderate level of leverage and increasing dependence on debt over time. Investors and stakeholders may want to closely monitor these ratios to assess the company's ability to manage its financial obligations effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 5.65 | 4.51 | 3.74 | 2.93 |
Based on the data provided, Pilgrim`s Pride Corp.'s interest coverage ratio has fluctuated over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
In Q4 2023, the interest coverage ratio was 3.40, indicating that the company earned 3.40 times the amount of interest expense in that quarter. This was a decrease from the previous quarter's ratio of 2.21. Although the ratio has decreased, Pilgrim`s Pride Corp. still has a relatively healthy interest coverage ratio.
Looking at the trend over the past eight quarters, the interest coverage ratio has been volatile. It reached its peak in Q4 2022 at 8.40 and has since been trending downward. It is important for investors and creditors to monitor this ratio closely to ensure that the company can continue to meet its interest obligations comfortably.
Overall, with the interest coverage ratio ranging from 2.21 to 9.41 over the past eight quarters, Pilgrim`s Pride Corp. has shown some fluctuations in its ability to cover interest expenses. Investors should continue to monitor this ratio along with other financial metrics to assess the company's financial health.