Perrigo Company PLC (PRGO)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,392,400 | 4,428,700 | 4,556,100 | 4,655,500 | 4,653,900 | 4,630,300 | 4,558,900 | 4,451,700 | 4,401,300 | 4,343,800 | 4,203,200 | 4,138,700 | 4,323,300 | 4,494,300 | 4,732,300 | 5,063,300 | 5,096,600 | 5,074,000 | 5,003,900 | 4,837,400 |
| Property, plant and equipment | US$ in thousands | 909,100 | 909,900 | 911,400 | 916,400 | 902,900 | 918,300 | 919,300 | 926,300 | 839,900 | 840,300 | 846,300 | 864,100 | 842,800 | 833,800 | 860,000 | 864,600 | 918,800 | 892,300 | 889,100 | 774,200 |
| Fixed asset turnover | 4.83 | 4.87 | 5.00 | 5.08 | 5.15 | 5.04 | 4.96 | 4.81 | 5.24 | 5.17 | 4.97 | 4.79 | 5.13 | 5.39 | 5.50 | 5.86 | 5.55 | 5.69 | 5.63 | 6.25 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,392,400K ÷ $909,100K
= 4.83
The fixed asset turnover ratio measures the efficiency with which a company generates revenue from its investment in fixed assets. A higher fixed asset turnover indicates that the company is generating more revenue relative to its investment in fixed assets.
Analyzing Perrigo Company PLC's fixed asset turnover over the past eight quarters, we observe some fluctuations but an overall strong trend. The ratio ranged from 4.79 to 6.25 during this period, with the highest value recorded in the last quarter. This indicates that Perrigo has been effectively utilizing its fixed assets to generate revenue.
The company's ability to consistently maintain a fixed asset turnover above 5.00 demonstrates efficient asset utilization and the effectiveness of its operational activities. Investors and stakeholders can view this as a positive indicator of Perrigo's operational efficiency and its ability to generate revenue from its fixed asset base.
Overall, Perrigo's strong fixed asset turnover performance over the past eight quarters suggests effective management of its assets to drive revenue growth, which can be a favorable sign for investors evaluating the company's operational performance.
Peer comparison
Sep 30, 2024