Perrigo Company PLC (PRGO)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 151,900 | 172,800 | 573,700 | 932,400 | 604,500 |
| Total assets | US$ in thousands | 10,809,100 | 11,017,300 | 10,425,700 | 11,488,400 | 11,301,400 |
| Operating ROA | 1.41% | 1.57% | 5.50% | 8.12% | 5.35% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $151,900K ÷ $10,809,100K
= 1.41%
Perrigo Company plc's operating return on assets (ROA) has experienced fluctuations over the past five years. In 2023, the operating ROA was 2.62%, showing an improvement compared to the previous year's 1.11%. However, this is still lower than the levels achieved in 2020 and 2019, which were 4.05% and 3.68%, respectively. The operating ROA in 2021 was 1.75%, indicating a slight increase from the prior year but remaining below the 2020 and 2019 levels.
The trend in Perrigo's operating ROA suggests some variability in the company's ability to generate profits from its assets over the years. The lower operating ROA in 2022 might have raised concerns about the company's operational efficiency and asset utilization, but the improvement in 2023 is a positive sign. Further analysis of Perrigo's operating performance and asset management efficiency would be necessary to understand the factors driving these fluctuations in operating ROA.
Peer comparison
Dec 31, 2023