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.