Perrigo Company PLC (PRGO)

Solvency ratios

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
Debt-to-assets ratio 0.35 0.34 0.34 0.38 0.37 0.37 0.37 0.38 0.37 0.34 0.28 0.27 0.26 0.31 0.31 0.31 0.29 0.28 0.30 0.30
Debt-to-capital ratio 0.44 0.44 0.43 0.46 0.46 0.46 0.46 0.47 0.46 0.41 0.36 0.36 0.35 0.39 0.38 0.38 0.37 0.35 0.37 0.37
Debt-to-equity ratio 0.80 0.77 0.76 0.85 0.84 0.84 0.84 0.89 0.84 0.69 0.57 0.56 0.53 0.63 0.62 0.61 0.60 0.55 0.58 0.58
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

Perrigo Company PLC's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable around 0.30 to 0.40 over the past few years, indicating that about 30% to 40% of the company's assets are financed by debt.

The debt-to-capital ratio has also remained consistent around 0.40 to 0.45 during the same period, suggesting that debt comprises approximately 40% to 45% of the company's total capital structure.

Furthermore, the debt-to-equity ratio shows a similar trend, oscillating between 0.50 and 0.90, with the most recent figure at 0.80. This implies that for every dollar of equity, the company has between $0.50 and $0.90 in debt.

The financial leverage ratio, which measures the company's total assets relative to its equity, hovers around 2.00 to 2.30. This suggests that the company is utilizing debt to amplify its returns, with a higher ratio indicating a greater reliance on debt to finance its operations.

Overall, Perrigo Company PLC's solvency ratios indicate a moderate level of leverage and debt utilization, which should be carefully monitored to ensure the company's long-term financial stability.

Coverage ratios

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
Interest coverage 1.58 2.17 2.30 1.97 1.78 0.52 0.37 0.57 3.33 5.53 5.93 10.35 6.78 5.86 6.68 4.11 4.81 5.10 4.97 2.55

The interest coverage ratio for Perrigo Company PLC has shown fluctuations over the past few quarters. The ratio provides insights into the company's ability to meet its interest obligations with its operating earnings. A higher interest coverage ratio indicates a stronger ability to meet interest payments.

Looking at the data, we observe that the interest coverage ratio has varied significantly, ranging from a low of 0.37 in December 2022 to a high of 10.35 in March 2022. The ratio improved in the most recent quarters, reaching 2.17 in March 2024 and 1.58 in June 2024.

The low values in December 2022 and March 2023 (0.37 and 0.52, respectively) suggest potential concerns about the company's ability to cover its interest expenses with its operating income during that period. However, the ratio improved in subsequent quarters, indicating a better ability to service its debt.

The interest coverage ratio exceeding 1 indicates that the company's operating income is sufficient to cover its interest expenses, but the extent of coverage is crucial. It is important to monitor the trend of this ratio over time to assess the company's financial health and ability to manage its debt obligations effectively.