Perrigo Company PLC (PRGO)

Return on total capital

		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	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	273,100	375,278	400,278	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	314,500
Long-term debt	US$ in thousands	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	3,361,500
Total stockholders’ equity	US$ in thousands	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	5,758,800
Return on total capital		3.35%	4.51%	4.76%	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%	3.45%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $273,100K ÷ ($3,616,800K + $4,545,300K)
= 3.35%

The return on total capital for Perrigo Company PLC has shown fluctuation over the periods analyzed. The ratio indicates the company's ability to generate returns from the total capital employed in its operations.

From December 2019 to March 2020, the return on total capital was relatively stable around the 6-7% range, suggesting a consistent performance in utilizing its capital efficiently. However, in the subsequent periods up to September 2020, there was a slight decline in the ratio, indicating a potential decrease in profitability or efficiency in capital utilization.

From September 2020 to March 2021, there was an increase in the return on total capital, reaching a peak of 9.10% in March 2021. This suggests that the company's profitability and capital efficiency improved during this period.

Subsequently, from June 2021 to September 2022, the return on total capital fluctuated within a wider range, with values varying between 5.05% and 15.57%. This variability indicates possible changes in the company's financial performance and capital efficiency during these periods.

In the most recent periods from December 2022 to June 2024, the return on total capital has been relatively stable within the 3-5% range, indicating moderate profitability and capital efficiency.

Overall, the analysis of Perrigo Company PLC's return on total capital shows variability in its capital efficiency and profitability over the periods analyzed, suggesting fluctuations in the company's ability to generate returns from its total capital employed.