Perrigo Company PLC (PRGO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,319,400 | 4,767,900 | 4,842,100 | 5,151,700 | 5,655,100 |
| ROE | -3.98% | -0.27% | -2.70% | -2.54% | -2.88% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-171,800K ÷ $4,319,400K
= -3.98%
Based on the provided data, Perrigo Company PLC's return on equity (ROE) has been negative over the past five years. The trend indicates a decline in ROE from -2.88% in December 2020 to -3.98% in December 2024, with a slight improvement to -0.27% in December 2023. A negative ROE implies that the company is generating losses relative to its equity base.
This persistent negative ROE suggests that Perrigo may be struggling to generate sufficient profits from its equity investments. This could be attributed to issues such as inefficient cost management, declining revenue, or poor operational performance. Investors and stakeholders should carefully monitor Perrigo's financial performance and management strategies to understand the reasons behind the negative ROE and assess the company's long-term sustainability and growth prospects.
Peer comparison
Dec 31, 2024