Perrigo Company PLC (PRGO)

Days of inventory on hand (DOH)

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
Inventory turnover 2.62 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 2.71 2.97 3.15 3.43
DOH days 139.51 147.40 143.60 139.61 139.97 139.01 140.04 142.62 140.13 133.54 134.26 132.44 136.78 142.40 141.44 136.77 134.87 122.87 115.76 106.29

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.62
= 139.51

The days of inventory on hand (DOH) for Perrigo Company PLC have shown some fluctuations over the analyzed period. The trend indicates an increase in DOH from March 31, 2020, to June 30, 2021, reaching a peak of 141.44 days. Subsequently, there was a slight decrease in DOH by December 31, 2021. This was followed by some variability in the DOH figures until December 31, 2024, where it settled at 139.51 days.

Overall, the DOH metric suggests that Perrigo Company PLC may be carrying inventory for an extended period, which could tie up working capital and increase storage costs. It is essential for the company to manage its inventory effectively to reduce the DOH figure, potentially by improving demand forecasting, streamlining production processes, or renegotiating supplier terms.