Perrigo Company PLC (PRGO)

Operating return on assets (Operating ROA)

		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	Sep 30, 2019
Operating income (ttm)	US$ in thousands	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	319,200
Total assets	US$ in thousands	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	11,310,800
Operating ROA		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%	2.82%

June 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $134,800K ÷ $10,397,300K
= 1.30%

Operating return on assets (ROA) is a key financial metric that measures a company's efficiency in generating profits from its operating assets. Perrigo Company PLC's operating ROA has fluctuated over the period analyzed, ranging from -1.98% to 4.17%.

The trend of Perrigo's operating ROA shows some variability over time, with peaks and troughs observed in different quarters. The highest operating ROA of 4.17% was recorded in the second quarter of 2022, indicating efficient utilization of the company's operating assets to generate profits during that period.

On the other hand, the lowest operating ROA of -1.98% was reported in the first quarter of 2021, suggesting that the company faced challenges in generating profits from its operating assets during that particular quarter.

Overall, Perrigo's operating ROA appears to have shown some improvement in recent quarters, bouncing back from negative figures to positive levels. However, it is essential for the company to maintain a consistent and positive trend in operating ROA to demonstrate sustained operational efficiency and profitability.