Perrigo Company PLC (PRGO)

Cash ratio

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
Cash and cash equivalents US$ in thousands 1,463,500 542,800 658,500 751,300 598,300 555,200 553,000 600,700 468,700 485,300 1,965,500 1,864,900 2,078,100 317,500 470,900 631,500 849,400 1,456,300 510,400 354,300
Short-term investments US$ in thousands — — — 100 100 — 100 100 200 300 200 400 1,500 1,600 2,900 2,500 3,300 4,100 3,700 6,600
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
Cash ratio 1.01 0.36 0.42 0.47 0.59 0.53 0.51 0.54 0.46 0.48 2.00 1.17 1.04 0.16 0.33 0.46 0.64 0.79 0.31 0.27

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,463,500K + $—K) ÷ $1,450,500K
= 1.01

The cash ratio of Perrigo Company PLC has shown fluctuation over the periods indicated in the table. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that a company has more liquidity to meet its short-term obligations.

In the recent period, the cash ratio was 1.01, indicating that Perrigo had sufficient cash to cover its short-term liabilities. However, this ratio was significantly lower in the previous periods, ranging from 0.16 to 0.59. The sharp increase in the cash ratio to 2.00 in the first quarter of 2022 suggests a significant improvement in Perrigo's liquidity position during that period.

It is important to note that a very high cash ratio may indicate that a company is holding excess cash that could be invested more efficiently. On the other hand, a low cash ratio may signal potential liquidity issues and the company's inability to meet its short-term obligations.

Overall, Perrigo's cash ratio has varied over the periods analyzed, possibly due to changes in cash balances, short-term liabilities, or overall financial performance. Monitoring this ratio along with other liquidity and financial metrics can provide valuable insights into the company's financial health and management of its cash resources.