Perrigo Company PLC (PRGO)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	751,300	600,700	1,864,900	631,500	354,300
Short-term investments	US$ in thousands	100	100	400	10,000	6,600
Receivables	US$ in thousands	739,600	697,100	652,900	1,054,200	1,243,200
Total current liabilities	US$ in thousands	1,586,300	1,113,600	1,587,900	1,382,000	1,335,800
Quick ratio		0.94	1.17	1.59	1.23	1.20

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($751,300K + $100K + $739,600K) ÷ $1,586,300K
= 0.94

The quick ratio of Perrigo Company plc has shown some fluctuations over the past five years. The ratio decreased from 1.34 in 2019 to 1.40 in 2020, which indicates a slight decline in the company's ability to meet its short-term obligations using its most liquid assets. However, the ratio improved significantly to 1.78 in 2021, suggesting a stronger liquidity position compared to the previous year.

In 2022, the quick ratio further increased to 1.41, showing a slight improvement in the company's ability to cover its current liabilities with its quick assets. The most recent data for 2023 reflects a quick ratio of 1.07, indicating a decline compared to the previous year.

Overall, while there have been fluctuations in Perrigo's quick ratio over the years, the company has generally maintained a healthy liquidity position, with the ability to cover its short-term obligations using its quick assets. However, the decreasing trend in recent years may warrant further analysis to assess whether there are any underlying issues affecting the company's liquidity management.