Perrigo Company PLC (PRGO)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,655,600	4,451,600	4,138,700	5,063,300	4,837,400
Receivables	US$ in thousands	739,600	697,100	652,900	1,054,200	1,243,200
Receivables turnover		6.29	6.39	6.34	4.80	3.89

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $4,655,600K ÷ $739,600K
= 6.29

The receivables turnover ratio for Perrigo Company plc has generally shown an increasing trend over the past five years, indicative of the company's ability to efficiently collect cash from its credit sales. In 2019, the ratio was 3.89, which means the company turned over its accounts receivable approximately 3.89 times during that year.

Subsequently, there was a significant improvement, with the ratio increasing to 4.80 in 2020. This indicates that Perrigo was able to collect cash from its customers at a faster rate compared to the previous year.

The trend continued positively in the following years, with the ratio reaching 6.34 in 2021, 6.39 in 2022, and 6.29 in 2023. This suggests that the company has become more efficient in managing its accounts receivable, highlighting its effectiveness in collecting outstanding payments from customers and converting them into cash.

Overall, the increasing trend in the receivables turnover ratio for Perrigo Company plc reflects a positive aspect of its financial management, demonstrating strong liquidity and effective credit control policies.