Perrigo Company PLC (PRGO)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	4,767,900	4,842,100	5,151,700	5,655,100	5,803,800
ROE		-0.27%	-2.70%	-2.54%	-2.88%	2.52%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-12,700K ÷ $4,767,900K
= -0.27%

Perrigo Company plc's return on equity (ROE) has exhibited fluctuations over the past five years. The ROE was negative in the most recent two years, indicating that the company's net income was insufficient to cover its shareholder's equity during these periods. Specifically, the ROE was -0.27% in 2023 and -2.90% in 2022. This suggests that the company faced challenges in generating profits relative to its equity base during these years.

Furthermore, the ROE was also negative in 2020, standing at -2.88%. However, in 2019, Perrigo's ROE was positive at 2.52%, indicating that the company was able to generate a profit relative to the equity invested by shareholders that year.

Overall, the negative ROE figures in recent years raise concerns about the company's efficiency in utilizing shareholder investments to generate profits. It is essential for management to assess the factors contributing to the low ROE and implement strategies to improve profitability and enhance shareholder value in the future.