Perrigo Company PLC (PRGO)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.23 | 2.27 | 2.28 | 2.02 | 2.03 |
Perrigo Company PLC's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets, capital, and equity over the period from December 31, 2020, to December 31, 2024.
- The Debt-to-assets ratio remained at 0.00 across all the years, suggesting that the company has no significant debt in relation to its total assets. This indicates a low risk of financial distress due to debt obligations.
- The Debt-to-capital ratio also remained at 0.00 throughout the period, indicating that the company's debt level compared to its total capital (debt and equity) is negligible. This reflects a stable capital structure with minimal reliance on debt financing.
- The Debt-to-equity ratio also stayed constant at 0.00 from 2020 to 2024, highlighting that Perrigo has no debt relative to its equity. This implies that the company is not highly leveraged and enjoys a strong equity position.
- The Financial leverage ratio, which increased slightly from 2.03 in 2020 to 2.23 in 2024, indicates that the company's assets are financed primarily by equity rather than debt. Despite the slight increase, the ratio remains at a moderate level, suggesting efficient use of leverage to support business operations without excessive risk.
Overall, the consistently low debt levels and stable solvency ratios of Perrigo Company PLC demonstrate a healthy financial position and the ability to meet its financial obligations comfortably.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.57 | 0.95 | 1.08 | 4.83 | 2.22 |
The interest coverage ratio indicates the ability of Perrigo Company PLC to meet its interest payment obligations. A higher ratio implies a more comfortable position in servicing its debt from operating profits.
In December 2020, Perrigo's interest coverage stood at 2.22, indicating that the company generated operating income 2.22 times higher than its interest expense. The ratio improved significantly to 4.83 by December 2021, reflecting a stronger ability to cover interest costs. However, the ratios for December 2022, December 2023, and December 2024 decreased to 1.08, 0.95, and 0.57 respectively.
The declining trend from 2021 to 2024 suggests a deterioration in Perrigo's ability to meet interest obligations from its operating income. A low interest coverage ratio may signal financial distress and potential difficulties in meeting debt obligations.