Perrigo Company PLC (PRGO)

Debt-to-capital 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
Long-term debt	US$ in thousands	4,312,600	3,616,800	3,624,900	3,632,800	4,048,500	4,055,900	4,062,800	4,070,400	4,077,500	4,086,100	3,510,600	2,916,700	2,920,900	2,925,800	3,525,300	3,527,600	3,543,600	3,536,000	3,182,900	3,365,800
Total stockholders’ equity	US$ in thousands	4,566,000	4,545,300	4,687,000	4,767,900	4,738,100	4,848,600	4,833,900	4,842,100	4,602,700	4,849,800	5,104,500	5,151,700	5,182,400	5,511,100	5,558,000	5,655,100	5,820,300	5,910,400	5,786,400	5,803,800
Debt-to-capital ratio		0.49	0.44	0.44	0.43	0.46	0.46	0.46	0.46	0.47	0.46	0.41	0.36	0.36	0.35	0.39	0.38	0.38	0.37	0.35	0.37

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,312,600K ÷ ($4,312,600K + $4,566,000K)
= 0.49

The debt-to-capital ratio of Perrigo Company PLC has demonstrated some fluctuations over the past few years, with a range between 0.35 and 0.49. The ratio indicates the proportion of a company's capital that is financed by debt. Perrigo's ratio has generally been in the mid to high 0.3 range, indicating that a significant portion of its capital structure is comprised of debt.

There was a notable increase in the ratio from the first quarter of 2022 to the second quarter of 2022, suggesting an increase in debt relative to capital during that period. This was followed by a decrease in the ratio in subsequent quarters, although it remained relatively stable in the mid to high 0.4 range.

Overall, the trend in Perrigo's debt-to-capital ratio over the analyzed period indicates a moderate reliance on debt to finance its operations and investments. It would be important to monitor this ratio in the future to assess the company's ability to manage its debt levels and financial risks effectively.