Perrigo Company PLC (PRGO)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 5.59 6.10 5.84 6.29 6.31 6.14 — 6.39 — — — 6.34 — — — — — — — —
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
Working capital turnover 1.95 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

Inventory turnover: The inventory turnover ratio for Perrigo Company PLC has been relatively stable over the past few quarters, ranging from 2.48 to 3.43. This indicates the number of times the company sells and replaces its inventory during a specific period. The company seems to be managing its inventory efficiently, with a moderate turnover rate.

Receivables turnover: The receivables turnover ratio demonstrates how efficiently Perrigo collects payments from its customers. The trend fluctuates, with some quarters showing significant fluctuations and some quarters having missing data. The company should focus on maintaining a consistent collection period to improve its cash flow.

Payables turnover: The payables turnover ratio reflects how quickly Perrigo pays its suppliers. The trend indicates some variations, but overall, the company maintains a stable payables turnover rate. Consistent payables turnover might indicate good relationships with suppliers and effective management of payment cycles.

Working capital turnover: The working capital turnover ratio measures how efficiently Perrigo generates revenue relative to its working capital. The trend shows some variability in performance, with a few quarters showing lower turnover rates. Maintaining a higher working capital turnover ratio signifies optimal utilization of resources to generate sales, indicating the company's effectiveness in managing its working capital.

In conclusion, while Perrigo Company PLC displays sound efficiency in managing its inventory, there are opportunities for improvement in managing receivables, payables, and working capital turnovers to enhance overall operational performance.

Average number of days

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
Days of inventory on hand (DOH) days 147.40 143.60 139.61 139.97 139.01 140.04 142.62 140.13 133.54 134.26 132.44 136.78 142.40 141.44 136.77 119.05 122.87 115.76 106.29 115.22
Days of sales outstanding (DSO) days 65.31 59.83 62.49 57.99 57.86 59.44 — 57.16 — — — 57.58 — — — — — — — —
Number of days of payables days 59.61 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

The activity ratios of Perrigo Company PLC provide insight into how efficiently the company manages its inventory, receivables, and payables.

Days of inventory on hand (DOH) have shown an increasing trend over the past few quarters, indicating that Perrigo is taking longer to sell its inventory. This may suggest potential issues with inventory management or slower sales turnover.

Days of sales outstanding (DSO) have fluctuated and shown some inconsistency, which could be due to changes in sales terms, customer payment behavior, or collection efforts. It is important for Perrigo to closely monitor and manage its receivables to ensure timely collections.

Number of days of payables has also varied over the periods, indicating the time it takes for Perrigo to pay its suppliers. A longer payable period may suggest a favorable cash conversion cycle, but it could also strain relationships with suppliers if not managed effectively.

Overall, Perrigo should focus on improving inventory turnover, optimizing receivables collection, and managing payables to enhance efficiency in its operations and working capital management. Regular monitoring and adjustments in these activity ratios can help the company maintain a healthy balance between liquidity and profitability.

Long-term

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
Fixed asset turnover 4.83 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
Total asset turnover 0.39 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

Perrigo Company PLC's long-term activity ratios indicate its efficiency in utilizing its assets for generating sales over the years. The fixed asset turnover has remained relatively stable, ranging from 4.79 to 5.39, with a slight decrease in recent quarters. This ratio indicates that Perrigo efficiently utilizes its fixed assets to generate sales but may have experienced some fluctuations in asset efficiency.

On the other hand, the total asset turnover ratio shows a similar trend, fluctuating between 0.39 and 0.44 over the periods analyzed. This ratio reveals that Perrigo generates sales in relation to its total assets, with some variability in asset utilization efficiency over time. Overall, the company maintains a level of consistent performance in converting its assets into revenue, showcasing effective operational management.

Further analysis of the factors influencing these ratios, such as changes in production capacity, asset utilization, and sales growth, may provide insights into Perrigo's operational effectiveness and potential areas for improvement in asset management strategies.