Perrigo Company PLC (PRGO)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,632,800 | 4,070,400 | 2,916,700 | 3,527,600 | 3,365,800 |
| Total stockholders’ equity | US$ in thousands | 4,767,900 | 4,842,100 | 5,151,700 | 5,655,100 | 5,803,800 |
| Debt-to-capital ratio | 0.43 | 0.46 | 0.36 | 0.38 | 0.37 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,632,800K ÷ ($3,632,800K + $4,767,900K)
= 0.43
The debt-to-capital ratio of Perrigo Company plc has shown a consistent upward trend over the past five years, increasing from 0.37 in 2019 to 0.46 in both 2022 and 2023. This indicates that the company's level of debt relative to its total capital has been steadily rising.
A higher debt-to-capital ratio suggests that a larger portion of the company's capital structure is funded by debt rather than equity. While debt can be used to finance growth and investments, it also increases financial risk as the company has to fulfill interest and principal payments.
The stability of the ratio at 0.46 in 2022 and 2023 suggests that the company's debt and capital levels have remained relatively consistent over the past two years. However, it is important for investors and stakeholders to monitor changes in this ratio over time as it can indicate shifts in the company's capital structure and financial health.
Peer comparison
Dec 31, 2023