Perrigo Company PLC (PRGO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -171,800 | -12,700 | -130,900 | -130,900 | -162,600 |
| Total assets | US$ in thousands | 9,647,700 | 10,809,100 | 11,017,300 | 10,425,700 | 11,488,400 |
| ROA | -1.78% | -0.12% | -1.19% | -1.26% | -1.42% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-171,800K ÷ $9,647,700K
= -1.78%
Based on the data provided, Perrigo Company PLC's return on assets (ROA) has been fluctuating over the years. In December 31, 2020, the ROA was reported at -1.42%, indicating that for every dollar of assets, the company generated a net loss of 1.42 cents. This trend continued into December 31, 2021, with an ROA of -1.26% and December 31, 2022, with an ROA of -1.19%.
However, there was a slight improvement in performance by December 31, 2023, with the ROA showing a less negative figure of -0.12%, potentially suggesting better asset utilization or profitability. Nevertheless, this positive trend was short-lived as by December 31, 2024, the ROA decreased significantly to -1.78%, indicating a decline in the company's ability to generate profits from its assets.
Overall, Perrigo Company PLC has been facing challenges in efficiently utilizing its assets to generate profits, as evidenced by the consistently negative ROA figures in the recent years. Management may need to evaluate the effectiveness of their asset management strategies and consider implementing measures to enhance profitability and return on assets in the future.
Peer comparison
Dec 31, 2024