Perrigo Company PLC (PRGO)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 558,800 | 751,300 | 600,700 | 1,864,900 | 641,500 |
| Short-term investments | US$ in thousands | — | 100 | 100 | 400 | 2,500 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,044,200 | 1,586,300 | 1,113,600 | 1,587,900 | 1,382,000 |
| Quick ratio | 0.54 | 0.47 | 0.54 | 1.17 | 0.47 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($558,800K
+ $—K
+ $—K)
÷ $1,044,200K
= 0.54
The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. Perrigo Company PLC's quick ratio has shown some fluctuations over the past five years.
As of December 31, 2020, the quick ratio was 0.47, indicating that the company had more short-term liabilities than liquid assets readily available to cover them, which could raise concerns about its short-term financial health.
By December 31, 2021, the quick ratio improved significantly to 1.17, suggesting that the company had an improved ability to cover its short-term obligations with its liquid assets. This increase may indicate better liquidity management or increased availability of liquid assets during that period.
However, by December 31, 2022, the quick ratio decreased to 0.54, signaling a potential decline in the company's ability to meet its short-term obligations with its liquid assets compared to the previous year. This could be a cause for concern as a lower quick ratio may indicate liquidity challenges.
The quick ratio remained relatively stable at 0.47 by December 31, 2023, showing a consistent but low level of liquidity to cover short-term liabilities.
Finally, by December 31, 2024, the quick ratio improved again to 0.54, reaching a level similar to that of 2022. This improvement may suggest that the company was able to enhance its liquidity position compared to the previous year.
Overall, fluctuations in Perrigo Company PLC's quick ratio over the five-year period indicate varying levels of liquidity and the company's ability to meet short-term obligations with liquid assets. Investors and stakeholders may need to closely monitor these changes to assess the company's short-term financial stability.
Peer comparison
Dec 31, 2024