Perrigo Company PLC (PRGO)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		2.62	2.61	2.60	2.67	2.71
DOH	days	139.49	139.97	140.13	136.78	134.87

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.62
= 139.49

The days of inventory on hand (DOH) for Perrigo Company PLC have shown a slightly increasing trend over the period from December 31, 2020, to December 31, 2024. Specifically, the DOH increased from 134.87 days in 2020 to 139.49 days in 2024. This indicates that, on average, Perrigo has been holding onto its inventory for a longer period each year over this timeframe.

A higher DOH value may suggest inefficiencies in inventory management, potentially tying up more capital in inventory and increasing the risk of obsolescence. It could also indicate slower inventory turnover which may lead to higher carrying costs.

Further analysis and comparison with industry benchmarks or historical data would provide greater insights into Perrigo's inventory management performance and help assess the effectiveness of their supply chain management strategies.