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.