Perrigo Company PLC (PRGO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 138,700 | 27,100 | 24,600 | 103,100 | 196,300 | 283,300 | 261,600 | 125,200 | 95,600 | 45,800 | 408,300 | 355,900 | 385,900 | 179,000 | -160,400 | 27,800 | 61,000 | 352,300 | 357,100 | 388,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 3.21% | 0.59% | 0.54% | 2.20% | 4.12% | 5.98% | 5.40% | 2.59% | 1.97% | 1.00% | 8.42% | 6.97% | 7.49% | 3.45% | -2.91% | 0.50% | 1.08% | 6.05% | 6.04% | 6.72% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $138,700K ÷ ($—K + $4,319,400K)
= 3.21%
Perrigo Company PLC's return on total capital has shown fluctuations over the analyzed period. The ratio was relatively stable in the range of 6% to 8% in the first half of the period. However, there was a significant decline in the ratio towards the end of 2021 and the first half of 2022, dropping to negative values in June 2021 and September 2021.
Subsequently, there was a gradual recovery in the return on total capital, with the ratio increasing to around 6% in the first quarter of 2023. However, the ratio experienced some volatility in the following quarters, ranging from 2% to almost 6%.
Overall, Perrigo Company PLC's return on total capital performance reflects variability in its efficiency in generating profits from the total capital employed in its operations. It is essential for the company to focus on sustaining and improving this ratio to enhance its overall financial performance and create value for its stakeholders.
Peer comparison
Dec 31, 2024