Perrigo Company PLC (PRGO)

Current ratio

		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	Sep 30, 2019
Total current assets	US$ in thousands	2,959,100	2,806,400	2,832,900	2,765,300	2,773,000	2,740,700	2,719,900	2,583,300	2,651,500	3,935,500	3,859,900	4,225,900	4,420,200	4,488,600	3,133,500	3,398,300	3,803,500	3,046,200	2,730,600	2,739,800
Total current liabilities	US$ in thousands	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	1,324,700
Current ratio		1.99	1.81	1.79	2.74	2.62	2.52	2.44	2.55	2.61	4.01	2.43	2.11	2.23	3.10	2.27	2.54	2.05	1.86	2.04	2.07

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,959,100K ÷ $1,488,100K
= 1.99

The current ratio of Perrigo Company PLC has exhibited fluctuations over the past eight quarters, ranging from a low of 1.79 to a high of 4.01. The ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities.

The current ratio peaked at 4.01 in Mar 31, 2022, indicating a strong liquidity position at that time. However, in the subsequent quarters, the ratio decreased and remained relatively stable between 1.79 and 2.74. This suggests that the company may have faced challenges in managing its short-term obligations compared to its current asset levels during that period.

Overall, the current ratio of Perrigo Company PLC has shown some variability but has generally stayed above 1, implying that the company has had sufficient current assets to cover its short-term liabilities in most of the quarters analyzed. However, management may need to closely monitor and potentially improve this ratio to ensure continued liquidity and financial stability.