Perrigo Company PLC (PRGO)

Days of inventory on hand (DOH)

		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	Dec 31, 2019
Inventory turnover		2.48	2.54	2.61	2.61	2.63	2.61	2.56	2.60	2.73	2.72	2.76	2.67	2.56	2.58	2.67	3.07	2.97	3.15	3.43	3.17
DOH	days	147.40	143.60	139.61	139.97	139.01	140.04	142.62	140.13	133.54	134.26	132.44	136.78	142.40	141.44	136.77	119.05	122.87	115.76	106.29	115.22

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.48
= 147.40

The days of inventory on hand (DOH) for Perrigo Company PLC have shown fluctuations over the past few years, ranging from a low of 106.29 days as of March 31, 2020, to a high of 147.40 days as of September 30, 2024. This indicates that the company has held inventory for varying lengths of time before selling it during the periods examined.

A trend analysis reveals that DOH has generally been increasing over the most recent quarters, indicating a potential buildup of inventory relative to sales. This could suggest issues related to the management of inventory levels, potentially leading to increased carrying costs, storage expenses, and the risk of obsolescence.

Comparing the DOH metric to industry benchmarks and historical data for the company can provide further insights into Perrigo's inventory management efficiency and effectiveness. It may be beneficial for the company to conduct a detailed analysis of its inventory management processes to optimize inventory turnover and reduce excess inventory levels, which could positively impact working capital and overall financial performance.