Perrigo Company PLC (PRGO)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.23 | 5.58 | 6.62 | 7.19 | 5.89 | |
| Number of days of payables | days | 58.60 | 65.45 | 55.13 | 50.75 | 61.97 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.23
= 58.60
Perrigo Company plc's number of days of payables has shown some fluctuations over the past five years, ranging from 55.13 days in 2021 to 65.45 days in 2022. The number of days of payables decreased to 58.60 days in 2023, reflecting a shorter period within which the company settles its trade payables.
A lower number of days of payables can indicate that Perrigo Company plc is managing its accounts payable more efficiently, possibly negotiating better payment terms with suppliers or making payments more promptly. This may result in improved cash flow management and potentially lower financial risk for the company.
Overall, the trend of decreasing days of payables over the past two years suggests a positive development in Perrigo Company plc's working capital management, although further analysis of the company's payment practices and supplier relationships would provide a more comprehensive understanding of its financial position.
Peer comparison
Dec 31, 2023