Perrigo Company PLC (PRGO)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	1,680,400	1,455,400	1,416,200	1,815,200	1,773,300
Revenue	US$ in thousands	4,655,600	4,451,600	4,138,700	5,063,300	4,837,400
Gross profit margin		36.09%	32.69%	34.22%	35.85%	36.66%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,680,400K ÷ $4,655,600K
= 36.09%

The gross profit margin of Perrigo Company plc has demonstrated some fluctuations over the past five years. In 2023, the company's gross profit margin improved significantly to 36.09% from 32.69% in 2022. This indicates that Perrigo has been able to effectively manage its cost of goods sold and generate higher profits from its sales in the most recent year.

Furthermore, comparing the latest gross profit margin to 2021 and 2020, we observe a positive trend of improvement over the last three years. However, it is noteworthy that the gross profit margin was slightly higher in 2019 at 36.66% compared to the most recent year.

Overall, the recent increase in the gross profit margin suggests that Perrigo has potentially enhanced its operational efficiency and pricing strategies, which have positively impacted its profitability. Analyzing the trend over multiple years provides a more comprehensive understanding of the company's performance in managing production costs and maximizing revenues.