Perrigo Company PLC (PRGO)
Interest coverage
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 138,700 | 27,100 | 24,600 | 103,100 | 196,300 | 283,300 | 261,600 | 125,200 | 95,600 | 45,800 | 408,300 | 355,900 | 385,900 | 179,000 | -160,400 | 27,800 | 61,000 | 352,300 | 357,100 | 388,700 |
Interest expense (ttm) | US$ in thousands | 187,800 | 187,400 | 173,300 | 173,200 | 173,900 | 172,100 | 169,600 | 163,900 | 156,000 | 145,600 | 135,500 | 128,800 | 125,000 | 121,900 | 125,000 | 126,800 | 125,000 | 133,300 | 129,800 | 127,600 |
Interest coverage | 0.74 | 0.14 | 0.14 | 0.60 | 1.13 | 1.65 | 1.54 | 0.76 | 0.61 | 0.31 | 3.01 | 2.76 | 3.09 | 1.47 | -1.28 | 0.22 | 0.49 | 2.64 | 2.75 | 3.05 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $138,700K ÷ $187,800K
= 0.74
The interest coverage ratio of Perrigo Company PLC has shown significant fluctuations over the past few years, indicating varying degrees of ability to cover its interest payments with earnings before interest and taxes (EBIT).
From March 31, 2020, to June 30, 2022, the interest coverage ratio ranged between approximately 2.75 to 3.09, suggesting a relatively comfortable ability to meet interest obligations. However, the ratio dropped significantly by December 31, 2022, to 0.61, indicating a potential strain on covering interest expenses.
Subsequently, the interest coverage ratio fluctuated between 0.14 to 1.65 until December 31, 2024. These values suggest that the company may have faced challenges in covering its interest payments with its operating earnings during these periods.
Overall, the trend in Perrigo Company PLC's interest coverage ratio indicates varying levels of financial health when it comes to servicing its interest obligations, with the ratio experiencing notable fluctuations and occasionally falling to levels indicating potential financial stress.
Peer comparison
Dec 31, 2024