Perrigo Company PLC (PRGO)

Financial leverage 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
Total assets	US$ in thousands	11,203,200	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
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
Financial leverage ratio		2.45	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

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,203,200K ÷ $4,566,000K
= 2.45

The financial leverage ratio of Perrigo Company PLC has exhibited some fluctuations over the past few years, ranging from a low of 1.95 to a high of 2.45. Generally, the trend indicates that the company has been gradually increasing its leverage over the period under review.

The ratio indicates the company's reliance on debt to finance its operations and growth. A higher ratio signifies a greater proportion of debt in the company's capital structure. Perrigo's increasing financial leverage ratio suggests that the company has been taking on more debt relative to its equity, potentially to fund investments and expansion.

It is important to note that a high financial leverage ratio can indicate increased financial risk as the company has higher interest payments and debt obligations to meet. However, it can also be a sign of aggressive growth strategies and leveraging opportunities in the market.

Investors and stakeholders should monitor Perrigo's financial leverage ratio over time to ensure that the company's debt levels are sustainable and aligned with its growth objectives and financial stability.