Perrigo Company PLC (PRGO)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 139.49 | 139.97 | 140.13 | 136.78 | 134.87 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 139.49 | 139.97 | 140.13 | 136.78 | 134.87 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 139.49 + — – —
= 139.49
The cash conversion cycle of Perrigo Company PLC has shown a slightly increasing trend over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 134.87 days, indicating that it takes approximately 134.87 days for Perrigo to convert its investments in inventory and accounts receivable into cash.
By December 31, 2024, the cash conversion cycle had extended to 139.49 days. This suggests that the company's liquidity position may have deteriorated slightly over this period, as it took longer for Perrigo to convert its operating assets into cash.
Overall, the upward movement in the cash conversion cycle over the years may indicate potential inefficiencies in managing working capital, inventory, and receivables. Perrigo may need to focus on streamlining its processes to improve its cash conversion efficiency and overall liquidity management in the future.
Peer comparison
Dec 31, 2024