Perrigo Company PLC (PRGO)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 6.10 | 5.84 | 6.29 | 6.31 | 6.14 | — | 6.39 | — | — | — | 6.34 | — | — | — | — | — | — | — | — | — |
| Payables turnover | 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 | 5.67 |
| Working capital turnover | 3.01 | 3.64 | 3.73 | 2.65 | 2.70 | 2.76 | 2.77 | 2.81 | 2.65 | 1.42 | 1.82 | 1.95 | 1.85 | 1.56 | 2.89 | 2.47 | 2.61 | 3.55 | 3.47 | 3.33 |
Perrigo Company PLC's inventory turnover ratio has been relatively stable over the past five quarters, averaging around 2.6. This indicates that the company is able to sell and replace its inventory approximately 2.6 times a year.
The receivables turnover ratio has shown some fluctuations, ranging from 5.84 to 6.39. Overall, the company collects its receivables approximately 6 times a year, although there is missing data for some quarters.
The payables turnover ratio has also varied, with values between 5.58 and 7.19. This indicates that Perrigo is able to repay its suppliers roughly between 5.6 and 7.2 times per year.
The working capital turnover ratio has shown some volatility, with values ranging from 1.42 to 3.73. This ratio illustrates how efficiently Perrigo utilizes its working capital to generate sales revenue, with higher values indicating better efficiency.
Overall, Perrigo's activity ratios suggest that the company is managing its inventory, receivables, payables, and working capital reasonably effectively, although there are some fluctuations that may warrant further investigation.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 143.60 | 139.61 | 139.97 | 139.01 | 140.04 | 142.62 | 140.13 | 133.54 | 134.26 | 132.44 | 136.78 | 142.40 | 141.44 | 136.77 | 119.05 | 122.87 | 115.76 | 106.29 | 115.22 | 121.55 |
| Days of sales outstanding (DSO) | days | 59.83 | 62.49 | 57.99 | 57.86 | 59.44 | — | 57.16 | — | — | — | 57.58 | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 60.66 | 56.49 | 58.60 | 52.37 | 56.44 | 60.91 | 65.45 | 56.78 | 60.98 | 62.13 | 55.13 | 52.87 | 51.01 | 51.80 | 50.75 | 59.88 | 54.72 | 63.47 | 61.96 | 64.41 |
Perrigo Company PLC's activity ratios reflect its efficiency in managing its inventory, receivables, and payables.
1. Days of inventory on hand (DOH) have shown a general upward trend over the periods analyzed, indicating an increase in the number of days it takes for the company to sell its inventory. This may suggest potential issues with inventory management efficiency or changing market demands affecting sales patterns.
2. Days of sales outstanding (DSO) show some fluctuations and data gaps in the periods reported. The decrease in DSO from June 2023 to December 2023 suggests a faster collection of receivables, which could improve cash flows. However, incomplete data limits comprehensive analysis of this trend.
3. Number of days of payables has also varied over the periods, with some fluctuations. Perrigo Company PLC appears to have extended its payable days in certain periods, allowing more time to pay its suppliers. However, the trend is not consistent, and further analysis is needed to determine the impact on the company's liquidity and vendor relationships.
Overall, the company may need to focus on optimizing its inventory turnover, enhancing receivables management, and maintaining a balanced approach to managing payables to ensure efficient working capital management and sustainable growth.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 4.87 | 5.00 | 5.08 | 5.15 | 5.04 | 4.96 | 4.81 | 5.24 | 5.17 | 4.97 | 4.79 | 5.13 | 5.39 | 5.50 | 5.86 | 5.55 | 5.69 | 5.63 | 6.25 | 5.40 |
| Total asset turnover | 0.43 | 0.43 | 0.43 | 0.43 | 0.42 | 0.42 | 0.40 | 0.41 | 0.40 | 0.40 | 0.40 | 0.40 | 0.40 | 0.42 | 0.44 | 0.44 | 0.42 | 0.44 | 0.43 | 0.42 |
Perrigo Company PLC’s long-term activity ratios indicate the efficiency with which the company is utilizing its assets. The fixed asset turnover ratio has been relatively stable over the periods analyzed, ranging from 4.79 to 5.50. This suggests that Perrigo is generating sales efficiently using its fixed assets, with a higher ratio indicating better utilization of these long-term assets.
In contrast, the total asset turnover ratio has remained relatively consistent around the 0.40 to 0.44 range. This ratio indicates the company's overall ability to generate sales from all its assets, including both fixed and current assets. A stable total asset turnover ratio could imply that the efficiency of utilizing total assets for generating sales has been consistent over time.
Overall, the fixed asset turnover ratio shows Perrigo's effectiveness in generating sales using its long-term assets, while the total asset turnover ratio gives a broader perspective on the company's efficiency in utilizing all its assets to generate revenues. The stability of these ratios over the periods analyzed suggests a consistent level of asset utilization by Perrigo Company PLC.