Perrigo Company PLC (PRGO)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -167,100 | -154,900 | -119,700 | -5,600 | -10,800 | 8,800 | -57,500 | -130,800 | -131,000 | -108,700 | -115,500 | -108,300 | -68,900 | -253,500 | -349,200 | -230,900 | -162,600 | -6,600 | 240,200 | 188,600 |
| Total stockholders’ equity | US$ in thousands | 4,319,400 | 4,566,000 | 4,545,300 | 4,687,000 | 4,767,900 | 4,738,100 | 4,848,600 | 4,833,900 | 4,842,100 | 4,602,700 | 4,849,800 | 5,104,500 | 5,151,700 | 5,182,400 | 5,511,100 | 5,558,000 | 5,655,100 | 5,820,300 | 5,910,400 | 5,786,400 |
| ROE | -3.87% | -3.39% | -2.63% | -0.12% | -0.23% | 0.19% | -1.19% | -2.71% | -2.71% | -2.36% | -2.38% | -2.12% | -1.34% | -4.89% | -6.34% | -4.15% | -2.88% | -0.11% | 4.06% | 3.26% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-167,100K ÷ $4,319,400K
= -3.87%
The return on equity (ROE) of Perrigo Company PLC has shown a downward trend over the last few years. It started at a modest 3.26% in March 2020 and gradually deteriorated to negative values, reaching its lowest point of -6.34% in June 2021. Subsequently, the ROE improved slightly but remained negative until September 2023 when it turned positive at 0.19%. However, the positive momentum was short-lived as it dipped back into negative territory in the following quarters. By December 2024, the ROE stood at -3.87%.
This trend indicates that Perrigo's ability to generate profits from shareholder equity has been inconsistent and struggled to maintain positive returns. It is essential for the company to address the underlying factors contributing to the decline in ROE and implement strategies to improve profitability and efficiency to enhance shareholder value in the long term.
Peer comparison
Dec 31, 2024