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.