Perrigo Company PLC (PRGO)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	10,809,100	11,017,300	10,425,700	11,488,400	11,301,400
Total stockholders’ equity	US$ in thousands	4,767,900	4,842,100	5,151,700	5,655,100	5,803,800
Financial leverage ratio		2.27	2.28	2.02	2.03	1.95

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,809,100K ÷ $4,767,900K
= 2.27

The financial leverage ratio for Perrigo Company plc has exhibited a gradual increase from 1.95 in 2019 to 2.27 in 2023. This suggests that the company has been relying more on debt financing as compared to equity over the years. The slight fluctuations in the ratio indicate some variability in the company's capital structure, with 2022 and 2023 showing a slight decrease from the previous year, which could indicate a slight shift towards equity financing. Overall, a financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure, which may increase financial risk but also potentially boost returns for shareholders in periods of growth.