Perrigo Company PLC (PRGO)
Working capital 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 |
| Total current assets | US$ in thousands | 2,832,900 | 2,719,900 | 3,859,900 | 3,133,500 | 2,730,600 |
| Total current liabilities | US$ in thousands | 1,586,300 | 1,113,600 | 1,587,900 | 1,382,000 | 1,335,800 |
| Working capital turnover | 3.73 | 2.77 | 1.82 | 2.89 | 3.47 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,655,600K ÷ ($2,832,900K – $1,586,300K)
= 3.73
The working capital turnover of Perrigo Company plc has shown fluctuations over the past five years. A higher working capital turnover indicates that the company is efficiently managing its working capital to generate sales. In 2023, the working capital turnover improved to 3.73 from the previous year, reflecting a stronger efficiency in utilizing its working capital to drive revenue. This suggests that Perrigo Company plc has increased its sales in relation to its working capital, potentially through better management of inventory, receivables, and payables. However, it is important to note that the working capital turnover in 2021 was relatively lower at 1.82, indicating a potential inefficiency in working capital management during that period. Overall, the upward trend in the working capital turnover ratio from 2021 to 2023 reflects an improvement in the company's efficiency in utilizing its working capital to support sales growth.
Peer comparison
Dec 31, 2023