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.
Peer comparison
Dec 31, 2023