Perrigo Company PLC (PRGO)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -12,700 | -130,900 | -130,900 | -162,600 | 146,100 |
| Total assets | US$ in thousands | 10,809,100 | 11,017,300 | 10,425,700 | 11,488,400 | 11,301,400 |
| ROA | -0.12% | -1.19% | -1.26% | -1.42% | 1.29% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-12,700K ÷ $10,809,100K
= -0.12%
Perrigo Company plc's return on assets (ROA) has shown fluctuating performance over the past five years. In 2019, the company had a positive ROA of 1.29%, indicating efficient utilization of assets to generate profit. However, this performance declined significantly in 2020 to -1.42%, indicating a decrease in profitability relative to the assets employed.
Subsequently, in 2021, there was a slight improvement in ROA to -0.66%, but it remained negative. This negative trend continued in 2022 with a ROA of -1.28%, suggesting a further decline in profitability per unit of assets.
In the latest financial year, the company reported a ROA of -0.12%, still negative but showing a slight improvement compared to the previous year. Overall, Perrigo Company plc's ROA has depicted inconsistency and a general downward trend over the past five years, indicating challenges in effectively generating profit from its assets. Further analysis and strategic measures may be required to enhance the company's ROA and overall financial performance.
Peer comparison
Dec 31, 2023