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Perrigo Co Altman Z-Score

: 1.24 (As of Today)
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Warning Sign:

Altman Z-score of 1.23 is in distress zone. This implies bankruptcy possibility in the next two years.

Perrigo Co has a Altman Z-Score of 1.24, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Perrigo Co's Altman Z-Score or its related term are showing as below:

PRGO' s Altman Z-Score Range Over the Past 10 Years
Min: 0.09   Med: 3.98   Max: 11.28
Current: 1.23

During the past 13 years, Perrigo Co's highest Altman Z-Score was 11.28. The lowest was 0.09. And the median was 3.98.


Perrigo Co Altman Z-Score Historical Data

The historical data trend for Perrigo Co's Altman Z-Score 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.

* Premium members only.

Perrigo Co Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.81 1.07 1.13 0.96 1.11

Perrigo Co Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.04 1.01 1.11 1.11 1.19

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Perrigo Co's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Drug Manufacturers industry and Healthcare sector, Perrigo Co's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Perrigo Co's Altman Z-Score falls into.



Perrigo Co Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Perrigo Co's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.2843+1.4*-0.1857+3.3*0.0344+0.6*1.0637+1.0*0.4046
=1.24

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Mar. 2022:
Total Assets was $10,390 Mil.
Total Current Assets was $3,936 Mil.
Total Current Liabilities was $981 Mil.
Retained Earnings was $-1,929 Mil.
Pre-Tax Income was -13 + 9.9 + 388.9 + -157.1 = $229 Mil.
Interest Expense was -35.8 + -30.5 + -30.9 + -31.6 = $-129 Mil.
Revenue was 1074.5 + 1104.9 + 1042.7 + 981.1 = $4,203 Mil.
Market Cap (Today) was $5,622 Mil.
Total Liabilities was $5,285 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(3935.5 - 981.3)/10389.5
=0.2843

X2=Retained Earnings/Total Assets
=-1929.4/10389.5
=-0.1857

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(228.7 - -128.8)/10389.5
=0.0344

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=5621.567/5285
=1.0637

X5=Revenue/Total Assets
=4203.2/10389.5
=0.4046

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Perrigo Co has a Altman Z-Score of 1.24 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Perrigo Co  (NYSE:PRGO) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Perrigo Co Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Perrigo Co's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Perrigo Co Business Description

Perrigo Co logo
Address
The Sharp Building, Hogan Place, Dublin, IRL, D02 TY74
Perrigo Co PLC is a leading private label supplier of generic over the counter (OTC) drugs in the U.S. and Europe. The company's product offerings fall under traditional OTC drug categories (i.e. cough, cold, allergy, pain), in addition to oral care, infant nutrition (formula), and nicotine cessation aids. In addition to private label manufacturing, the company also sells products under its own brands (largely in the skincare and oral-care category). The company became a pure-play in OTC consumer healthcare in 2021, following a series of divestitures over several years (sold off generic prescription topicals, animal health, and active pharmaceutical ingredient business). In late 2021, Perrigo signed an offer to acquire HRA Pharma.
Executives
Ives Alison officer: EVP & Chief Scientific Officer C/O PERRIGO COMPANY PLC 515 EASTERN AVENUE ALLEGAN MI 49010
Hanson Kyle officer: EVP & General Counsel
Bezerra Eduardo Guarita officer: EVP & Chief Financial Officer C/O FRESH DEL MONTE PRODUCE INC. PO BOX 149222 CORAL GABLES FL 33134
Ashford Orlando D director C/O AMERANT BANK 220 ALHAMBRA CR. CORAL GABLES FL 33134
Doyle Katherine C. director 100 ABBOTT PARK ROAD, AP6C-1N D032L ABBOTT PARK IL 60064
Sorota Richard S officer: EVP & President CSCA HARMAN INTERNATIONAL INDUSTRIES, INC. 1101 PENNSYLVANIA AVE, NW, #1010 WASHINGTON DC 20004
Mann Erica L director ONE KELLOGG SQUARE P.O. BOX 3599 BATTLE CREEK MI 49016-3599
Silcock Raymond officer: EVP, Chief Financial Officer 399 JEFFERSON ROAD PARSIPPANY NJ 07054
Willis Robert officer: Acting CHRO C/O PERRIGO COMPANY PLC 515 EASTERN AVENUE ALLEGAN MI 49010
Dillard James E Iii officer: EVP, Chief Scientific Officer 6601 WEST BROAD STREET RICHMOND VA 23230
Kessler Murray S director, officer: CEO 714 GREEN VALLEY ROAD GREENSBORO NC 27408
Smith Jeffrey C director 777 THIRD AVENUE, 18TH FLOOR NEW YORK NY 10017
Roehrhoff Uwe director, officer: CEO C/O PERRIGO COMPANY PLC TREASURY BUILDING, LOWER GRAND CANAL ST DUBLIN L2 D2
Classon Rolf A director C/O CATALENT, INC. 14 SCHOOLHOUSE ROAD SOMERSET NJ 08873
Karaboutis Adriana director C/O BIOGEN IDEC INC. 225 BINNEY ST. CAMBRIDGE MA 02142

Perrigo Co Headlines

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