Perrigo Company PLC (PRGO)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 139.51 | 147.40 | 143.60 | 139.61 | 139.97 | 139.01 | 140.04 | 142.62 | 140.13 | 133.54 | 134.26 | 132.44 | 136.78 | 142.40 | 141.44 | 136.77 | 134.87 | 122.87 | 115.76 | 106.29 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 139.51 | 147.40 | 143.60 | 139.61 | 139.97 | 139.01 | 140.04 | 142.62 | 140.13 | 133.54 | 134.26 | 132.44 | 136.78 | 142.40 | 141.44 | 136.77 | 134.87 | 122.87 | 115.76 | 106.29 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 139.51 + — – —
= 139.51
The cash conversion cycle of Perrigo Company PLC has shown fluctuations over the periods provided. The cash conversion cycle represents the average number of days it takes for a company to convert its resources into cash through the sales of goods or services.
From the data provided, we observe that the cash conversion cycle ranged from a low of 106.29 days on March 31, 2020, to a high of 147.40 days on September 30, 2024. Generally, a shorter cash conversion cycle is preferable as it indicates that the company is efficiently managing its working capital.
In the earlier periods, the cash conversion cycle increased gradually until reaching its peak on September 30, 2024. This could indicate potential challenges in managing cash flow, inventory, and receivables efficiently during that period.
However, there was a slight decrease in the cash conversion cycle in the last quarter of 2024, which could suggest that the company took measures to improve its working capital management.
Overall, the trend of the cash conversion cycle for Perrigo Company PLC shows fluctuations over time, highlighting the importance of closely monitoring and managing working capital to ensure optimal cash flow operations.
Peer comparison
Dec 31, 2024