Perrigo Company PLC (PRGO)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	153,100	134,800	126,800	151,800	198,400	192,500	84,500	57,700	73,400	455,500	380,800	410,500	311,600	-222,200	21,100	115,400	160,700	310,600	248,200	204,800
Revenue (ttm)	US$ in thousands	4,392,400	4,428,700	4,556,100	4,655,500	4,653,900	4,630,300	4,558,900	4,451,700	4,401,300	4,343,800	4,203,200	4,138,700	4,323,300	4,494,300	4,732,300	5,063,300	5,096,600	5,074,000	5,003,900	4,837,400
Operating profit margin		3.49%	3.04%	2.78%	3.26%	4.26%	4.16%	1.85%	1.30%	1.67%	10.49%	9.06%	9.92%	7.21%	-4.94%	0.45%	2.28%	3.15%	6.12%	4.96%	4.23%

September 30, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $153,100K ÷ $4,392,400K
= 3.49%

Based on the operating profit margin data for Perrigo Company PLC over the past several quarters, there are fluctuations in the profitability of the company. The operating profit margin provides insight into how efficiently the company is generating profits from its core operations.

In the most recent quarter, ending September 30, 2024, Perrigo had an operating profit margin of 3.49%. This represents the percentage of revenue that the company retains as operating income after accounting for variable costs associated with production. The operating profit margin has shown a slight upward trend compared to the previous quarter, where it was 3.04%.

Looking at the historical trend, the operating profit margin has experienced variability over the last few quarters. There was a significant decline in the margin in the first quarter of 2021, dropping to -4.94%, which may have indicated operational challenges. However, the company managed to improve its profitability significantly in subsequent quarters, achieving double-digit operating profit margins in the first half of 2022.

It is essential for Perrigo to closely monitor and manage its operating expenses and revenue generation to ensure a healthy operating profit margin. The company should strive for consistency in profitability to demonstrate operational efficiency and sustainable performance to its stakeholders. Further analysis of the factors influencing the margin fluctuations would provide valuable insights for strategic decision-making.