Perrigo Company PLC (PRGO)
Inventory 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 | ||
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Cost of revenue (ttm) | US$ in thousands | 2,807,600 | 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 |
Inventory | US$ in thousands | 1,133,800 | 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 |
Inventory turnover | 2.48 | 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 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,807,600K ÷ $1,133,800K
= 2.48
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by showing how many times a company's inventory is sold and replaced over a certain period. Perrigo Company PLC's inventory turnover has shown some fluctuation over the past several quarters, ranging from a low of 2.48 to a high of 3.43.
On average, Perrigo's inventory turnover has been gradually decreasing over the past few years. This pattern might suggest that the company is taking longer to sell its inventory or managing its inventory less efficiently.
A lower inventory turnover ratio could indicate excess inventory levels, slow-moving inventory, or difficulties in managing inventory effectively. It may also suggest potential liquidity issues or inefficiencies in the supply chain.
Further analysis and comparison with industry benchmarks are needed to fully assess the implications of Perrigo's inventory turnover trend and its potential impact on the company's overall financial health and performance.
Peer comparison
Sep 30, 2024
Sep 30, 2024