US Foods Holding Corp (USFD)
Liquidity 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.21 | 1.19 | 1.29 | 1.31 | 1.30 | 1.29 | 1.34 | 1.34 | 1.37 | 1.36 | 1.37 | 1.34 | 1.41 | 1.48 | 1.51 | 1.59 | 1.75 | 1.60 | 1.62 | 1.94 |
| Quick ratio | 0.61 | 0.62 | 0.71 | 0.69 | 0.68 | 0.69 | 0.72 | 0.10 | 0.68 | 0.12 | 0.07 | 0.06 | 0.66 | 0.27 | 0.25 | 0.35 | 0.42 | 0.43 | 0.61 | 0.53 |
| Cash ratio | 0.02 | 0.02 | 0.12 | 0.08 | 0.09 | 0.11 | 0.12 | 0.10 | 0.08 | 0.12 | 0.07 | 0.06 | 0.08 | 0.27 | 0.25 | 0.35 | 0.42 | 0.43 | 0.61 | 0.53 |
US Foods Holding Corp's liquidity ratios have shown some fluctuations over the analyzed period. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, saw a gradual decline from 1.94 on March 31, 2020, to 1.21 on December 31, 2024. This indicates a potential weakening in the company's short-term liquidity position.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibited variability. It dropped significantly from 0.61 on June 30, 2020, to 0.06 on March 31, 2022, before gradually recovering to 0.61 on December 31, 2024. The quick ratio's fluctuations suggest that US Foods Holding Corp may have faced challenges in meeting its immediate payment obligations at certain points.
The cash ratio, which assesses the company's ability to settle current liabilities using its most liquid assets, showed a similar trend to the quick ratio. It decreased notably from 0.61 on June 30, 2020, to 0.02 on December 31, 2024. This indicates that US Foods Holding Corp's cash position relative to its short-term liabilities deteriorated over the analyzed period.
Overall, the declining current ratio, volatile quick ratio, and decreasing cash ratio suggest potential liquidity concerns for US Foods Holding Corp. It may be important for the company to closely monitor and manage its short-term liquidity position to ensure its ability to meet its financial obligations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 12.98 | 12.53 | 12.13 | 13.38 | 14.48 | 12.86 | 12.81 | -5.40 | 15.77 | -4.64 | -3.07 | -2.97 | 18.63 | -5.20 | -4.84 | -4.47 | 0.86 | -3.70 | -9.16 | 1.87 |
The cash conversion cycle of US Foods Holding Corp witnessed fluctuations over the analyzed period. A negative cash conversion cycle indicates that the company is efficiently managing its working capital, as it is able to collect cash from customers before paying its suppliers.
From March 31, 2020, to December 31, 2021, the company maintained a negative cash conversion cycle, reflecting its ability to generate cash quickly from its operational activities. This efficiency improved significantly from December 31, 2021, to March 31, 2022, with a further reduction in the cash conversion cycle.
However, from June 30, 2023, to December 31, 2024, the cash conversion cycle turned positive, indicating a delay in collecting cash from customers in comparison to paying suppliers. This shift may be attributed to changes in the company's operations or market conditions.
Overall, the analysis of US Foods Holding Corp's cash conversion cycle suggests periods of efficient working capital management followed by fluctuations that may require attention to maintain optimal cash flow dynamics.