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
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