Perrigo Company PLC (PRGO)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 9,647,700 | 10,809,100 | 11,017,300 | 10,425,700 | 11,488,400 |
| Operating ROA | 1.17% | 1.41% | 1.57% | 5.50% | 8.12% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $112,900K ÷ $9,647,700K
= 1.17%
Operating ROA is a key financial ratio that measures a company's ability to generate profits from its assets used in operations. Perrigo Company PLC's Operating ROA has shown a downward trend over the past five years.
In December 2020, the Operating ROA stood at 8.12%, indicating that the company was efficiently utilizing its assets to generate operating income. However, there has been a gradual decline in performance since then. By December 2024, the Operating ROA had decreased to 1.17%, reflecting a significant decrease in the company's ability to generate operating profits relative to its assets.
This decline in Operating ROA may suggest inefficiencies in Perrigo's operations or challenges in generating sufficient earnings from its asset base. It is essential for the company to assess and improve its operational efficiency to enhance profitability and potentially revert this negative trend in Operating ROA.
Peer comparison
Dec 31, 2024