Perrigo Company PLC (PRGO)
Financial leverage ratio
Dec 31, 2024 | 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 | ||
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Total assets | US$ in thousands | 9,647,700 | 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 |
Total stockholders’ equity | US$ in thousands | 4,319,400 | 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 |
Financial leverage ratio | 2.23 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,647,700K ÷ $4,319,400K
= 2.23
The financial leverage ratio of Perrigo Company PLC has shown a consistent upward trend over the period from March 31, 2020, to December 31, 2024. The ratio has increased from 1.97 as of March 31, 2020, to 2.23 as of December 31, 2024. This indicates that the company's reliance on debt to finance its operations and investments has increased over the years.
A higher financial leverage ratio suggests that a larger proportion of the company's assets are financed through debt rather than equity. While taking on debt can provide tax advantages and leverage potential returns, it also increases financial risk, especially in times of economic downturn or rising interest rates.
It is essential for investors and stakeholders to monitor Perrigo's financial leverage ratio closely to assess the company's ability to meet its debt obligations and manage its financial risk effectively. Additionally, a rising leverage ratio may indicate a need for the company to carefully evaluate its capital structure and debt management strategies to maintain financial stability.
Peer comparison
Dec 31, 2024