The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Perrigo Co's quick ratio for the quarter that ended in Sep. 2024 was 1.77.
Perrigo Co has a quick ratio of 1.77. It generally indicates good short-term financial strength.
The historical rank and industry rank for Perrigo Co's Quick Ratio or its related term are showing as below:
PRGO'
s Quick Ratio Range Over the Past 10 Years
Min: 0.76 Med: 1.4 Max: 3.56
Current: 1.77
During the past 13 years, Perrigo Co's highest Quick Ratio was 3.56. The lowest was 0.76. And the median was 1.40.
PRGO's Quick Ratio is ranked better than 60.1% of 1035
companies
in the Drug Manufacturers industry
Industry Median: 1.4
vs PRGO: 1.77
Perrigo Co Quick Ratio Historical Data
The historical data trend for Perrigo Co's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Perrigo Co's Quick Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, Perrigo Co's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Perrigo Co's Quick Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Perrigo Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Perrigo Co's Quick Ratio falls into.
Perrigo Co Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Perrigo Co's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Perrigo Co (NYSE:PRGO) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Perrigo Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Perrigo Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Perrigo is one of the largest consumer health companies in the world. Since 2018, Perrigo divested its animal health and generic pharmaceuticals businesses to solely focus on consumer self-care. In North America (two thirds of total sales), the firm's product mix is anchored in private-label consumer health goods, which are sold to major retailers like Walmart, Amazon, Costco, and CVS. Perrigo also plays in Europe, Australia, and parts of Asia where it primarily generates revenue through its national brands, including Compeed, Solpadeine, Coldrex, and ellaOne.
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