Perrigo Company PLC (PRGO)

Return on total capital

		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	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	27,100	39,800	221,278	310,278	339,578	302,678	84,500	57,700	83,200	451,300	711,800	740,800	1,261,900	848,000	742,900	835,500	529,800	603,600	628,900	604,300
Long-term debt	US$ in thousands	4,312,600	3,616,800	3,624,900	3,632,800	4,048,500	4,055,900	4,062,800	4,070,400	4,077,500	4,086,100	3,510,600	2,916,700	2,920,900	2,925,800	3,525,300	3,527,600	3,543,600	3,536,000	3,182,900	3,365,800
Total stockholders’ equity	US$ in thousands	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	5,803,800
Return on total capital		0.31%	0.49%	2.66%	3.69%	3.86%	3.40%	0.95%	0.65%	0.96%	5.05%	8.26%	9.18%	15.57%	10.05%	8.18%	9.10%	5.66%	6.39%	7.01%	6.59%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $27,100K ÷ ($4,312,600K + $4,566,000K)
= 0.31%

Perrigo Company PLC's return on total capital has shown fluctuating trends over the periods analyzed. The return on total capital ranged from a low of 0.65% on Dec 31, 2022, to a high of 15.57% on Dec 31, 2021. Generally, the return on total capital has been positive, indicating the company's ability to generate earnings relative to the total capital employed.

However, there are instances of declining returns, such as the decrease from 9.18% on Mar 31, 2022, to 2.03% on Sep 30, 2024. It is important to further investigate the factors behind these fluctuations in order to assess the efficiency and profitability of Perrigo Company PLC's capital utilization. Overall, the return on total capital provides insights into the company's ability to generate profits from both debt and equity sources, and ongoing monitoring of this ratio is crucial for evaluating the company's financial performance.