Perrigo Company PLC (PRGO)
Working capital turnover
Dec 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 4,373,800 | 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 |
Total current assets | US$ in thousands | 2,481,900 | 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 |
Total current liabilities | US$ in thousands | 1,044,200 | 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 |
Working capital turnover | 3.04 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,373,800K ÷ ($2,481,900K – $1,044,200K)
= 3.04
The working capital turnover ratio for Perrigo Company PLC has exhibited fluctuations over the periods indicated. The trend indicates that for the most recent quarter of December 31, 2024, the working capital turnover stood at 3.04, suggesting that the company generated $3.04 in revenue for each dollar of working capital invested during that period. This ratio has shown variability, with values ranging from a low of 1.42 on March 31, 2022, to a high of 3.73 on December 31, 2023.
During the last few quarters, there seems to be a general improvement in the working capital turnover ratio after a decline from the highest point in December 31, 2023. This indicates that the efficiency of Perrigo Company PLC in utilizing its working capital to generate sales has experienced ups and downs. It is important to note that a higher working capital turnover ratio generally signifies improved efficiency in managing working capital, as the company is able to generate more revenue using less working capital.
However, the company should continue to monitor and manage its working capital effectively to ensure optimal performance and efficiency in its operations. Fluctuations in the working capital turnover ratio may be influenced by various factors such as changes in sales, inventory management, payment terms with suppliers, and overall operational efficiency. Analyzing these factors can provide insights into the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2024