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.