Perrigo Company PLC (PRGO)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,655,600	4,451,600	4,138,700	5,063,300	4,837,400
Property, plant and equipment	US$ in thousands	916,400	926,300	864,100	864,600	774,200
Fixed asset turnover		5.08	4.81	4.79	5.86	6.25

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,655,600K ÷ $916,400K
= 5.08

Perrigo Company plc's fixed asset turnover ratio has shown fluctuating trends over the past five years. The ratio indicates how efficiently the company generates sales revenue from its investment in fixed assets.

In 2023, the fixed asset turnover ratio increased to 5.08, indicating that the company generated $5.08 in sales for every dollar invested in fixed assets. This improvement suggests that Perrigo effectively utilized its fixed assets to generate revenue.

Comparing this to previous years, in 2022 the ratio was slightly lower at 4.81, while in 2021 it remained relatively stable at 4.79. The company achieved a similar fixed asset turnover ratio of 5.08 in 2020, suggesting consistent efficiency in asset utilization compared to the most recent year.

The highest fixed asset turnover was observed in 2019, at 5.36, indicating that Perrigo was particularly efficient in generating sales from its fixed assets during that year.

Overall, the analysis of Perrigo's fixed asset turnover ratio suggests that the company has been effectively leveraging its investment in fixed assets to generate sales revenue, with some fluctuations in efficiency over the past five years.