Perrigo Company PLC (PRGO)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	4,392,400	4,428,700	4,556,100	4,655,500	4,653,900	4,630,300	4,558,900	4,451,700	4,401,300	4,343,800	4,203,200	4,138,700	4,323,300	4,494,300	4,732,300	5,063,300	5,096,600	5,074,000	5,003,900	4,837,400
Total current assets	US$ in thousands	3,707,800	2,959,100	2,806,400	2,832,900	2,765,300	2,773,000	2,740,700	2,719,900	2,583,300	2,651,500	3,935,500	3,859,900	4,225,900	4,420,200	4,488,600	3,133,500	3,398,300	3,803,500	3,046,200	2,730,600
Total current liabilities	US$ in thousands	1,450,500	1,488,100	1,554,500	1,586,300	1,008,400	1,056,900	1,086,800	1,113,600	1,015,000	1,014,600	981,300	1,587,900	2,003,800	1,984,500	1,446,800	1,382,000	1,336,300	1,859,700	1,635,000	1,335,800
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

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,392,400K ÷ ($3,707,800K – $1,450,500K)
= 1.95

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. Perrigo Company PLC's working capital turnover has fluctuated over the past few years, ranging from a low of 1.42 to a high of 3.73.

The trend indicates that Perrigo has been able to improve its efficiency in utilizing working capital in recent quarters, with the most recent ratio of 1.95 being higher than the previous two quarters. This improvement suggests the company is managing its assets more effectively to generate sales.

However, it is important to note that the working capital turnover ratio should be analyzed in conjunction with other financial metrics to get a holistic view of the company's financial health and operational efficiency. Further analysis of Perrigo's financial statements and industry benchmarks would provide more insights into its working capital management effectiveness.