Perrigo Company PLC (PRGO)

Cash ratio

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
Cash and cash equivalents US$ in thousands 558,800 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 2,078,100 317,500 470,900 641,500 849,400 1,456,300 510,400
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
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
Cash ratio 0.54 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 0.47 0.64 0.79 0.31

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($558,800K + $—K) ÷ $1,044,200K
= 0.54

The cash ratio of Perrigo Company PLC has shown fluctuations over the period from March 31, 2020, to December 31, 2024.

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 the company has a greater proportion of liquid assets to cover its current liabilities, suggesting a stronger liquidity position.

In March 2020, the cash ratio was relatively low at 0.31, indicating that the company's cash and cash equivalents were only sufficient to cover 31% of its current liabilities. However, by September 2021, the cash ratio increased significantly to 1.04 and further to 2.00 by March 2022, indicating a substantial improvement in the company's liquidity position.

Subsequently, the cash ratio experienced some fluctuations but generally remained above 0.4, reaching a peak of 1.01 in September 2024. Overall, the cash ratio trend indicates that Perrigo Company PLC has been able to maintain a relatively healthy level of liquidity to meet its short-term obligations during the period under review.

It is important for stakeholders to monitor the cash ratio over time to assess the company's ability to meet its short-term financial obligations without relying on external financing. Additionally, comparing the cash ratio to industry benchmarks can provide further insights into the company's liquidity position relative to its peers.