showing the working

← PERRIGO

The business behind the dividend

MeasurePRGOMedianFormula
Return on equity-48.6%10.6%Net income ÷ shareholders’ equity
Return on capital employed-17.1%10.0%Operating income ÷ (equity + total debt)
Owner earnings$-1.18bn$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$145.10m$155.08mOperating cash flow − capital expenditure
Operating margin-26.4%14.3%Operating income ÷ revenue
Net margin-33.5%10.1%Net income ÷ revenue
Debt to equity1.24x0.73xTotal debt ÷ shareholders’ equity
Interest cover-5.56x4.22xOperating income ÷ interest expense
Current ratio2.76x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital2.02x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-19.5%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity-48.6%-4.0%-0.3%-2.9%-1.3%-2.9%2.5%2.3%1.9%-67.4%-2.9%
Return on capital employed-17.1%1.4%1.7%0.9%4.7%2.9%1.9%2.7%6.3%-17.0%1.7%
Operating margin-26.4%2.6%3.3%1.8%9.9%6.5%4.5%5.0%12.1%-37.9%3.3%
Net margin-33.5%-3.9%-0.3%-3.2%-1.7%-4.0%3.8%2.8%2.4%-76.0%-3.2%
Debt to equity1.24x0.84x0.85x0.85x0.68x0.63x0.58x0.57x0.54x0.97x0.68x
Current ratio2.76x2.38x1.79x2.44x2.43x2.27x2.04x1.89x1.96x1.53x2.04x
Cash conversion2.65x4.53x5.84x4.53x

How it compares in health care

Among the 60 health care companies here measured on free cash flow, PERRIGO pays out less than 3 of them. The median for that group is 29.8%, against this company’s 109.8%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 76 in health care →