Perrigo Company PLC (PRGO)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	11,203,200	10,397,300	10,640,300	10,809,100	10,758,300	10,964,700	10,954,900	11,017,300	10,677,500	10,919,600	10,389,500	10,425,700	10,915,900	11,230,300	11,324,800	11,488,400	11,576,000	12,128,300	11,400,700	11,301,400
Operating ROA		1.37%	1.30%	1.19%	1.40%	1.84%	1.76%	0.77%	0.52%	0.69%	4.17%	3.67%	3.94%	2.85%	-1.98%	0.19%	1.00%	1.39%	2.56%	2.18%	1.81%

September 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $153,100K ÷ $11,203,200K
= 1.37%

The operating return on assets (ROA) for Perrigo Company PLC has exhibited fluctuations over the past few quarters. The trend indicates some volatility in the company's ability to generate operating profits relative to its total assets.

The operating ROA was relatively stable at around 1-2% during the initial quarters of 2019 and 2020. However, there was a notable decline in the operating ROA to -1.98% in the first quarter of 2021, indicating that the company was temporarily not generating operating profits efficiently relative to its assets during that period.

Subsequently, there was a substantial recovery in the operating ROA, with the metric rising to 4.17% in the third quarter of 2022, which suggests a significant improvement in the company's operational efficiency and profitability. This positive trend continued into 2023, with operating ROA above 1.00% in each quarter.

However, there was a decline in the operating ROA in the first quarter of 2024 to 0.77%, which may indicate a slight dip in operational efficiency during that period. It is important for investors and stakeholders to monitor the company's future operating ROA performance to assess its ability to effectively utilize its assets to generate operating profits.