Perrigo Company PLC (PRGO)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 112,900 | 151,900 | 172,800 | 573,700 | 932,400 |
| Revenue | US$ in thousands | 4,373,400 | 4,655,600 | 4,451,600 | 4,138,700 | 5,063,300 |
| Operating profit margin | 2.58% | 3.26% | 3.88% | 13.86% | 18.41% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $112,900K ÷ $4,373,400K
= 2.58%
The operating profit margin of Perrigo Company PLC has shown a declining trend over the five-year period from December 31, 2020 to December 31, 2024.
Starting at 18.41% in December 31, 2020, the operating profit margin decreased to 13.86% by December 31, 2021, indicating a decrease in the company's profitability relative to its sales. This decline continued significantly in the following years, with the operating profit margin falling to 3.88% by December 31, 2022, and further dropping to 3.26% by December 31, 2023.
The most recent figure of 2.58% as of December 31, 2024, reflects a substantial decrease compared to the initial period, highlighting potential challenges in managing costs and improving operational efficiency. A declining operating profit margin may suggest lower profitability per dollar of sales, which could be attributed to factors such as increasing operating expenses, pricing pressures, or ineffective cost control measures.
Perrigo Company PLC may need to closely evaluate its cost structures and operational strategies to reverse this trend and enhance its profitability in the future.
Peer comparison
Dec 31, 2024