Perrigo Company PLC (PRGO)

Quick 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
Cash	US$ in thousands	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	631,500	849,400	1,456,300	510,400	354,300	398,500
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	6,600	2,600
Receivables	US$ in thousands	726,000	780,000	739,600	737,800	754,100	—	697,100	—	—	—	652,900	—	—	—	—	—	—	—	—	—
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
Quick ratio		0.85	0.93	0.94	1.33	1.24	0.51	1.17	0.46	0.48	2.00	1.59	1.04	0.16	0.33	0.46	0.64	0.79	0.31	0.27	0.30

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($542,800K + $—K + $726,000K) ÷ $1,488,100K
= 0.85

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that a company may have difficulty in meeting its short-term liabilities.

Looking at Perrigo Company PLC's quick ratio over the past several quarters, we can see significant fluctuations. The quick ratio ranged from a low of 0.16 to a high of 2.00. In the most recent quarter, the quick ratio was 0.85, which indicates that the company may have some difficulty in meeting its short-term obligations with its current liquid assets.

The trend in the quick ratio shows inconsistency, with some quarters showing ratios below 1 (indicating potential liquidity issues) and others showing ratios above 1 (indicating a healthier liquidity position). This inconsistency could be a result of various factors such as changes in cash flow, accounts receivable management, or inventory levels.

It is important for Perrigo Company PLC to closely monitor its quick ratio and work towards maintaining a level above 1 to ensure it has the necessary liquidity to meet its short-term obligations. Further analysis of the components contributing to the quick ratio, such as cash, marketable securities, and receivables, would provide more insights into the company's liquidity position.