Perrigo Company PLC (PRGO)

Payables 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
Payables	US$ in thousands	458,500	471,500	453,700	477,700	433,100	470,500	505,200	537,300	461,400	490,400	479,600	411,200	405,600	402,400	430,300	451,600	536,400	489,100	555,800	520,200
Payables turnover		6.12	6.02	6.46	6.23	6.97	6.47	5.99	5.58	6.43	5.99	5.87	6.62	6.90	7.16	7.05	7.19	6.10	6.67	5.75	5.89

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,807,600K ÷ $458,500K
= 6.12

The payables turnover ratio for Perrigo Company PLC has fluctuated over the past 20 quarters, ranging from a low of 5.58 to a high of 7.19. The average payables turnover ratio over this period is approximately 6.48.

A high payables turnover ratio indicates that the company is efficiently managing its accounts payables by paying off its suppliers quickly, which could suggest strong liquidity or negotiation power with suppliers. On the other hand, a low payables turnover ratio may indicate that the company is taking longer to pay its suppliers, potentially signaling liquidity issues or strained supplier relationships.

Perrigo's payables turnover ratio has generally been above average, showing consistent efficiency in managing its accounts payable and maintaining good relationships with its suppliers. However, the fluctuations in the ratio over time may warrant further investigation to understand the underlying reasons for these variations in payment practices.