Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Allergan Inc., liquidity ratios
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Current ratio | 4.41 | 4.28 | 4.07 | 4.24 | 2.61 | |
| Quick ratio | 3.78 | 3.64 | 3.40 | 3.47 | 2.22 | |
| Cash ratio | 3.19 | 2.93 | 2.70 | 2.71 | 1.79 |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Allergan Inc. current ratio improved from 2012 to 2013 and from 2013 to 2014. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Allergan Inc. quick ratio improved from 2012 to 2013 and from 2013 to 2014. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Allergan Inc. cash ratio improved from 2012 to 2013 and from 2013 to 2014. |
Current Ratio
Allergan Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 6,871,200) | 5,319,700) | 4,458,800) | 4,048,300) | 3,993,700) | |
| Current liabilities | 1,557,300) | 1,244,300) | 1,095,200) | 955,000) | 1,528,400) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 4.41 | 4.28 | 4.07 | 4.24 | 2.61 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,871,200 ÷ 1,557,300 = 4.41
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Allergan Inc. current ratio improved from 2012 to 2013 and from 2013 to 2014. |
Quick Ratio
Allergan Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and equivalents | 4,911,400) | 3,046,100) | 2,701,800) | 2,406,100) | 1,991,200) | |
| Short-term investments | 55,000) | 603,000) | 260,600) | 179,900) | 749,100) | |
| Trade receivables, net | 914,500) | 883,300) | 764,200) | 730,600) | 647,300) | |
| Total quick assets | 5,880,900) | 4,532,400) | 3,726,600) | 3,316,600) | 3,387,600) | |
| Current liabilities | 1,557,300) | 1,244,300) | 1,095,200) | 955,000) | 1,528,400) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 3.78 | 3.64 | 3.40 | 3.47 | 2.22 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 5,880,900 ÷ 1,557,300 = 3.78
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Allergan Inc. quick ratio improved from 2012 to 2013 and from 2013 to 2014. |
Cash Ratio
Allergan Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and equivalents | 4,911,400) | 3,046,100) | 2,701,800) | 2,406,100) | 1,991,200) | |
| Short-term investments | 55,000) | 603,000) | 260,600) | 179,900) | 749,100) | |
| Total cash assets | 4,966,400) | 3,649,100) | 2,962,400) | 2,586,000) | 2,740,300) | |
| Current liabilities | 1,557,300) | 1,244,300) | 1,095,200) | 955,000) | 1,528,400) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 3.19 | 2.93 | 2.70 | 2.71 | 1.79 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,966,400 ÷ 1,557,300 = 3.19
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Allergan Inc. cash ratio improved from 2012 to 2013 and from 2013 to 2014. |