Perrigo Company PLC (PRGO)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,975,200	2,996,200	2,722,500	3,248,100	3,064,100
Inventory	US$ in thousands	1,140,900	1,150,300	1,020,200	1,059,400	967,300
Inventory turnover		2.61	2.60	2.67	3.07	3.17

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,975,200K ÷ $1,140,900K
= 2.61

The inventory turnover ratio for Perrigo Company plc has shown a decreasing trend over the past five years, declining from 3.17 in 2019 to 2.61 in 2023. This indicates that the company is selling its inventory at a slower rate compared to previous years. A lower inventory turnover ratio may suggest overstocking or inefficient inventory management, potentially leading to higher storage and holding costs. Perrigo should closely monitor its inventory levels and sales to optimize its inventory turnover and enhance operational efficiency.