Perrigo Company PLC (PRGO)

Financial leverage ratio

		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	Sep 30, 2019
Total assets	US$ in thousands	10,397,300	10,640,300	10,809,100	10,758,300	10,964,700	10,954,900	11,017,300	10,677,500	10,919,600	10,389,500	10,425,700	10,915,900	11,230,300	11,324,800	11,488,400	11,576,000	12,128,300	11,400,700	11,301,400	11,310,800
Total stockholders’ equity	US$ in thousands	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	5,758,800
Financial leverage ratio		2.29	2.27	2.27	2.27	2.26	2.27	2.28	2.32	2.25	2.04	2.02	2.11	2.04	2.04	2.03	1.99	2.05	1.97	1.95	1.96

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,397,300K ÷ $4,545,300K
= 2.29

Perrigo Company PLC's financial leverage ratio has been relatively stable over the past few quarters, ranging from 1.95 to 2.32. The financial leverage ratio measures the company's level of debt relative to its equity, indicating the proportion of assets financed by debt versus equity.

With a financial leverage ratio consistently above 2, Perrigo appears to have a higher degree of financial leverage, meaning it relies more on debt to finance its operations and growth. This can magnify returns on equity when operating conditions are favorable, but it also increases the company's financial risk, as higher levels of debt can result in higher interest expenses and potentially constrain financial flexibility.

The slight fluctuations in the financial leverage ratio suggest that Perrigo has been managing its debt levels effectively and maintaining a balance between debt and equity financing. However, investors and stakeholders should continue to monitor the financial leverage ratio to ensure that the company's debt levels remain sustainable and do not pose undue risks to its financial health.