Perrigo Company PLC (PRGO)

Solvency ratios

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
Debt-to-assets ratio 0.38 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
Debt-to-capital ratio 0.49 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
Debt-to-equity ratio 0.94 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
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

Perrigo Company PLC's solvency ratios show a relatively stable trend over the past few quarters. The debt-to-assets ratio has been hovering around 0.35 to 0.38, indicating that on average, 35% to 38% of the company's assets are financed by debt. This suggests the company has a moderate level of leverage in its capital structure.

The debt-to-capital ratio has ranged from 0.43 to 0.49, indicating that debt comprises around 43% to 49% of the company's total capital. This ratio has been relatively consistent, showing a moderate level of financial risk.

The debt-to-equity ratio has varied from 0.55 to 0.94, indicating that the company's liabilities have been between 55% and 94% of its equity. This suggests that the company has been reliant on debt to finance its operations, with the ratio fluctuating between moderate to high levels of leverage.

The financial leverage ratio has ranged from 1.95 to 2.45, reflecting the company's financial risk and its reliance on debt to support its operations. This ratio has been relatively stable, but at higher levels compared to some of the other solvency ratios, indicating a higher degree of leverage in the company's capital structure.

Overall, Perrigo Company PLC's solvency ratios indicate a moderate to high level of leverage, with a consistent trend in the company's ability to meet its long-term debt obligations. Investors and stakeholders should continue monitoring these ratios to assess the company's solvency risk and financial stability.

Coverage ratios

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
Interest coverage 0.14 0.23 1.28 1.78 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

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a healthier financial position, as it implies that the company is generating enough operating income to cover its interest expenses.

Looking at Perrigo Company PLC's interest coverage ratio over the past few quarters, we observe fluctuations in the ratio. The ratio has ranged from a low of 0.37 to a high of 10.35.

In the most recent quarter, the interest coverage ratio was 0.96, which indicates that the company's operating income was only sufficient to cover its interest expenses 0.96 times. This suggests a potential strain on the company's ability to meet its interest obligations.

On the other hand, in some previous quarters, such as December 2021 and March 2021, the interest coverage ratio was notably high at 10.35 and 6.68, respectively. This implies that the company had a strong ability to cover its interest expenses during those periods.

Overall, it is important for Perrigo Company PLC to closely monitor its interest coverage ratio and take appropriate steps to improve it, especially during periods of lower coverage, to ensure the company's financial stability and creditworthiness.