Perrigo Co (Perrigo Co) Sloan Ratio %

: -3.15% (As of Dec. 2023)

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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Perrigo Co's Sloan Ratio for the quarter that ended in Dec. 2023 was -3.15%.

As of Dec. 2023, Perrigo Co has a Sloan Ratio of -3.15%, indicating the company is in the safe zone and there is no funny business with accruals.

Perrigo Co Sloan Ratio % Historical Data

The historical data trend for Perrigo Co's Sloan Ratio % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Perrigo Co Annual Data

Trend

Jun14

Jun15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

3.14

-5.32

-14.40

13.71

-3.15

Perrigo Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Sloan Ratio %																13.71	15.08	-2.87	-2.85	-3.15

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Perrigo Co's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Perrigo Co Sloan Ratio % Distribution

For the Drug Manufacturers industry and Healthcare sector, Perrigo Co's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Perrigo Co's Sloan Ratio % falls into.

Perrigo Co Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Perrigo Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(-12.7	-	405.5
	-	-77.5)	/	10809.1
	=	-3.15%

Perrigo Co's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2023 )
	=	(-12.7	-	405.5
	-	-77.5)	/	10809.1
	=	-3.15%

Perrigo Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -3 (Mar. 2023 ) + 8.4 (Jun. 2023 ) + 14.2 (Sep. 2023 ) + -32.3 (Dec. 2023 ) = $-13 Mil.
Perrigo Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 19.4 (Mar. 2023 ) + 52.9 (Jun. 2023 ) + 124.5 (Sep. 2023 ) + 208.7 (Dec. 2023 ) = $406 Mil.
Perrigo Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -19.6 (Mar. 2023 ) + -4.4 (Jun. 2023 ) + -30.7 (Sep. 2023 ) + -22.8 (Dec. 2023 ) = $-78 Mil.

Perrigo Co (NYSE:PRGO) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Dec. 2023, Perrigo Co has a Sloan Ratio of -3.15%, indicating the company is in the safe zone and there is no funny business with accruals.

Perrigo Co Sloan Ratio % Related Terms

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Perrigo Co (Perrigo Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Perrigo Co PLC (NYSE:PRGO) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

PIG:Germany

Address

The Sharp Building, Hogan Place, Dublin, IRL, D02 TY74

Website

https://www.perrigo.com

Perrigo is one of the largest consumer health companies in the world. Since 2018, Perrigo divested its animal health and generic pharmaceuticals businesses to solely focus on consumer self-care. In North America (two thirds of total sales), the firm's product mix is anchored in private-label consumer health goods, which are sold to major retailers like Walmart, Amazon, Costco, and CVS. Perrigo also plays in Europe, Australia, and parts of Asia where it primarily generates revenue through its national brands, including Compeed, Solpadeine, Coldrex, and ellaOne.

Executives

Robert Willis	officer: Acting CHRO	C/O PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Alison Ives	officer: EVP & Chief Scientific Officer	C/O PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Eduardo Guarita Bezerra	officer: EVP & Chief Financial Officer	C/O FRESH DEL MONTE PRODUCE INC., PO BOX 149222, CORAL GABLES FL 33134
Patrick Lockwood-taylor	director, officer: CEO	C/O PERRIGO COMPANY PLC, 430 MONROE AVE NW, GRAND RAPIDS MI 49503
Julia M Brown	director	C/O ABLE BRANDS CO., 30 HUDSON YARDS, NEW YORK NY 10001
Triona Schmelter	officer: EVP & President CSCA	2021 SPRING ROAD, SUITE 600, OAK BROOK IL 60523
Geoffrey M. Parker	director	15 RIORDAN PLACE, MENLO PARK CA 94025
Svend Andersen	director	C/O PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Murray S Kessler	director, officer: CEO	714 GREEN VALLEY ROAD, GREENSBORO NC 27408
Thomas Farrington	officer: Senior VP and CIO	4012 W. CANTERBURY CT., NEQUON WI 53092
Dillard James E Iii	officer: EVP, Chief Scientific Officer	6601 WEST BROAD STREET, RICHMOND VA 23230
Ronald Craig Janish	officer: EVP, Global Op. & Supply Chain	PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Grainne Quinn	officer: EVP, Chief Medical Officer	PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Albert Manzone	director	C/O MERISANT, AVENUE JEAN-JACQUES ROUSSEAU 7, NEUCHATEL V8 CH-2000
Kyle Hanson	officer: EVP & General Counsel