Perrigo Company PLC (PRGO)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	2,837,100	2,931,500	2,975,200	3,018,300	3,043,000	3,027,500	2,996,300	2,966,100	2,935,100	2,817,600	2,722,500	2,800,300	2,879,600	3,031,900	3,248,100	3,269,800	3,262,500	3,196,300	3,064,200	2,974,400
Inventory	US$ in thousands	1,116,200	1,121,300	1,140,900	1,149,500	1,167,500	1,183,000	1,150,300	1,085,200	1,079,600	1,022,400	1,020,200	1,092,500	1,115,900	1,136,100	1,059,400	1,100,700	1,034,700	930,800	967,300	990,500
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

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,837,100K ÷ $1,116,200K
= 2.54

The inventory turnover ratio of Perrigo Company PLC has shown some fluctuations over the past several quarters. Generally, a higher inventory turnover ratio indicates that the company is efficiently managing its inventory levels and selling its products quickly.

In the most recent quarter, the inventory turnover ratio was 2.54, which indicates that inventory was turned over approximately 2.54 times during the period. This suggests that Perrigo may have experienced a slightly slower turnover of inventory compared to the previous quarter.

Looking at the trend over the past few quarters, the inventory turnover ratio has ranged between 2.54 and 3.43. While there have been fluctuations, the company's inventory turnover has generally remained within a relatively consistent range, indicating a stable level of efficiency in managing its inventory.

It would be important to further investigate the reasons behind the fluctuations in inventory turnover to better understand the company's inventory management practices and potential areas for improvement.