Perrigo Company PLC (PRGO)

Quick ratio

		Sep 30, 2024	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
Cash	US$ in thousands	1,463,500	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
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
Receivables	US$ in thousands	785,900	726,000	780,000	739,600	737,800	754,100	—	697,100	—	—	—	652,900	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	1,450,500	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
Quick ratio		1.55	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

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,463,500K + $—K + $785,900K) ÷ $1,450,500K
= 1.55

The quick ratio of Perrigo Company PLC has shown volatility over the past few quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

In the latest period (September 30, 2024), Perrigo's quick ratio improved to 1.55, indicating a strong ability to cover its current liabilities with its quick assets. This is a positive sign as it suggests the company has an adequate level of highly liquid assets to meet short-term obligations.

However, the quick ratio had previously been fluctuating, with values below 1 in some quarters. For instance, in March 31, 2023, the quick ratio dropped significantly to 0.51, indicating potentially tighter liquidity and a potential difficulty in meeting short-term obligations without relying on inventory.

Overall, the recent improvement in the quick ratio suggests that Perrigo's liquidity position has strengthened, but monitoring future trends in the ratio will be important to understand if the company can sustain its ability to meet short-term obligations effectively.