Perrigo Company PLC (PRGO)

Days of inventory on hand (DOH)

		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	Sep 30, 2019
Inventory turnover		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	3.00
DOH	days	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	121.55

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.54
= 143.60

The Days of Inventory on Hand (DOH) for Perrigo Company PLC has shown some fluctuations over the past few quarters. The trend indicates that the company has been carrying more inventory on hand in recent quarters compared to historical levels.

In the most recent quarter, as of June 30, 2024, Perrigo had an inventory holding period of approximately 143.60 days, which is higher than the previous quarter's 139.61 days. This may suggest that the company is experiencing challenges in managing its inventory efficiently.

Looking back over the past few years, there have been fluctuations in the DOH metric, with some quarters showing higher levels of inventory on hand compared to others. The trend appears to have been increasing gradually over the past few quarters, indicating a need for Perrigo to closely monitor and address its inventory management practices.

Overall, a high DOH ratio can tie up working capital and increase carrying costs for Perrigo. It may also indicate issues such as slow-moving inventory, overstocking, or potential supply chain disruptions. The company may need to reevaluate its inventory management strategies to optimize operations and improve efficiency in managing its inventory levels.