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.
Peer comparison
Sep 30, 2024