Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Allergan Inc., profitability ratios (quarterly data)
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
- Gross Profit Margin
- The gross profit margin exhibited a consistent upward trend throughout the periods, starting at 82.51% in March 2011 and steadily increasing to 86.6% by December 2014. This indicates an improvement in cost management or pricing power, resulting in higher profitability at the gross level over time.
- Operating Profit Margin
- Operating profit margin showed significant growth, especially between June and September 2011, where it surged from around 5.59% to 25.17%. Following this sharp increase, it maintained a high level, generally oscillating between approximately 26.64% and 30.23% across subsequent quarters. This pattern suggests improved operational efficiency or reduced operating expenses, sustaining stronger earnings from core business activities.
- Net Profit Margin
- Net profit margin followed a similar trajectory as operating margin, with negative or near-zero values in the early quarters of 2011 transitioning into positive and relatively stable margins ranging roughly between 15.26% and 21.39%. The improvement signals enhanced overall profitability after accounting for all expenses, taxes, and interest, reflecting healthier bottom-line results.
- Return on Equity (ROE)
- Return on equity experienced a notable recovery from negative or negligible values early in 2011 to consistently positive returns, fluctuating between approximately 15.24% and 19.66% thereafter. This trend implies growing efficiency in generating earnings relative to shareholders' equity, highlighting effective use of invested capital.
- Return on Assets (ROA)
- Return on assets improved from negative or minimal values in early 2011 to a more stable range between about 9.32% and 12.28% in subsequent periods. This indicates enhanced ability to generate profits from the company's asset base, pointing to better asset utilization and operational performance.
Return on Sales
Return on Investment
Gross Profit Margin
Allergan Inc., gross profit margin calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Gross profit | 1,652,300) | 1,555,100) | 1,577,100) | 1,386,800) | 1,426,800) | 1,307,400) | 1,348,900) | 1,201,900) | 1,262,200) | 1,169,100) | 1,232,400) | 1,138,300) | 1,168,800) | 1,091,100) | 1,173,900) | 1,037,000) | |||||
| Product net sales | 1,889,000) | 1,790,700) | 1,827,300) | 1,619,100) | 1,659,600) | 1,528,400) | 1,577,000) | 1,432,500) | 1,484,600) | 1,391,100) | 1,467,400) | 1,365,700) | 1,382,800) | 1,311,100) | 1,400,400) | 1,252,800) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Gross profit margin1 | 86.60% | 86.21% | 85.89% | 85.68% | 85.28% | 85.02% | 84.65% | 84.24% | 84.12% | 83.98% | 83.78% | 83.74% | 83.61% | 83.30% | 83.13% | 82.51% | |||||
| Benchmarks | |||||||||||||||||||||
| Gross Profit Margin, 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Vertex Pharmaceuticals Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q4 2014 Calculation
Gross profit margin = 100
× (Gross profitQ4 2014
+ Gross profitQ3 2014
+ Gross profitQ2 2014
+ Gross profitQ1 2014)
÷ (Product net salesQ4 2014
+ Product net salesQ3 2014
+ Product net salesQ2 2014
+ Product net salesQ1 2014)
= 100 × (1,652,300 + 1,555,100 + 1,577,100 + 1,386,800)
÷ (1,889,000 + 1,790,700 + 1,827,300 + 1,619,100)
= 86.60%
2 Click competitor name to see calculations.
- Gross Profit
- The gross profit exhibits a generally increasing trend over the analyzed periods. Starting at $1,037,000 thousand in March 2011, it rises steadily each quarter, reaching $1,652,300 thousand by December 2014. Seasonal fluctuations are noticeable, with fourth-quarter values typically higher than those in preceding quarters of the same year. This suggests an improvement in profitability or cost efficiency over time.
- Product Net Sales
- Product net sales follow a similar upward trajectory, moving from $1,252,800 thousand in March 2011 to $1,889,000 thousand in December 2014. Sales show consistent quarter-over-quarter growth with slight seasonal upticks toward the end of each year, notably the fourth quarter. The increasing sales volume likely supports the rising gross profit figures observed.
- Gross Profit Margin
- Gross profit margin steadily improves across the entire time span, beginning at 82.51% in March 2011 and climbing to 86.6% by December 2014. This incremental increase indicates enhanced efficiency in generating profit from sales or potentially favorable cost management. The margin rises consistently each quarter, with no significant volatility, signaling stable improvement in core operations.
- Summary of Trends
- Overall, the data reflect positive growth in sales and profitability over the four-year period. Both gross profit and product net sales demonstrate gradual but consistent increases, supported by a rising gross profit margin. The improvement in margin percentage further suggests better cost control or pricing power. The recurring pattern of higher sales and profits in the fourth quarter may point to seasonal demand influences. The steady progression in financial metrics indicates strengthening operational performance.
Operating Profit Margin
Allergan Inc., operating profit margin calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Operating income (loss) | 626,700) | 392,800) | 607,900) | 381,900) | 454,800) | 490,200) | 493,200) | 371,100) | 466,000) | 354,000) | 438,900) | 354,400) | 410,000) | 344,400) | 363,200) | 247,500) | |||||
| Product net sales | 1,889,000) | 1,790,700) | 1,827,300) | 1,619,100) | 1,659,600) | 1,528,400) | 1,577,000) | 1,432,500) | 1,484,600) | 1,391,100) | 1,467,400) | 1,365,700) | 1,382,800) | 1,311,100) | 1,400,400) | 1,252,800) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | 28.20% | 26.64% | 29.16% | 28.51% | 29.19% | 30.23% | 28.62% | 28.22% | 28.26% | 27.77% | 28.00% | 26.96% | 25.53% | 25.17% | 5.59% | 5.15% | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Vertex Pharmaceuticals Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q4 2014 Calculation
Operating profit margin = 100
× (Operating income (loss)Q4 2014
+ Operating income (loss)Q3 2014
+ Operating income (loss)Q2 2014
+ Operating income (loss)Q1 2014)
÷ (Product net salesQ4 2014
+ Product net salesQ3 2014
+ Product net salesQ2 2014
+ Product net salesQ1 2014)
= 100 × (626,700 + 392,800 + 607,900 + 381,900)
÷ (1,889,000 + 1,790,700 + 1,827,300 + 1,619,100)
= 28.20%
2 Click competitor name to see calculations.
The financial data indicates several notable trends in the company's quarterly performance over the analyzed period.
- Operating Income (Loss)
- Operating income exhibits a general upward trend with fluctuations across quarters. The values show a significant increase from the beginning of the period, with an initial figure around 247.5 million USD in the first quarter of 2011, progressively rising towards peaks in the latter years, reaching as high as approximately 627 million USD by the last quarter of 2014. Despite some quarters showing declines or relative stagnations, the overall trajectory points to enhanced operational profitability over time.
- Product Net Sales
- Product net sales demonstrate steady growth throughout the period. Starting from approximately 1.25 billion USD in early 2011, sales increase consistently, with only minor variability between quarters. By the end of 2014, net sales reach about 1.89 billion USD. This trend reflects positive market demand or effective sales strategies, contributing to the increased revenue base of the company.
- Operating Profit Margin
- The operating profit margin reveals a marked improvement from early 2011 to the end of 2014. Initial margins were low, near 5–6% in early 2011, indicating a relatively lower proportion of income retained from sales after operating expenses. Subsequently, margins jump significantly, stabilizing mostly between 25% and 30% after 2011, and maintaining this higher level through the subsequent years. This suggests increased operational efficiency or a more favorable cost structure, enabling the company to retain a larger share of sales revenue as operating profit.
In summary, the company demonstrates a positive financial trajectory characterized by increasing operating income, growing product sales, and substantially improved operating profit margins across the observed quarterly periods. These trends indicate strengthened operational performance and profitability over the four-year span.
Net Profit Margin
Allergan Inc., net profit margin calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Net earnings (loss) attributable to Allergan, Inc. | 537,200) | 312,500) | 417,200) | 257,300) | 312,900) | 299,800) | 359,900) | 12,500) | 324,200) | 249,400) | 295,400) | 229,800) | 279,800) | 249,800) | 246,600) | 158,300) | |||||
| Product net sales | 1,889,000) | 1,790,700) | 1,827,300) | 1,619,100) | 1,659,600) | 1,528,400) | 1,577,000) | 1,432,500) | 1,484,600) | 1,391,100) | 1,467,400) | 1,365,700) | 1,382,800) | 1,311,100) | 1,400,400) | 1,252,800) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | 21.39% | 18.85% | 19.40% | 19.27% | 15.90% | 16.54% | 16.07% | 15.26% | 19.25% | 18.81% | 19.08% | 18.42% | 17.48% | 17.47% | -0.05% | -0.18% | |||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Vertex Pharmaceuticals Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q4 2014 Calculation
Net profit margin = 100
× (Net earnings (loss) attributable to Allergan, Inc.Q4 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q3 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q2 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q1 2014)
÷ (Product net salesQ4 2014
+ Product net salesQ3 2014
+ Product net salesQ2 2014
+ Product net salesQ1 2014)
= 100 × (537,200 + 312,500 + 417,200 + 257,300)
÷ (1,889,000 + 1,790,700 + 1,827,300 + 1,619,100)
= 21.39%
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to Allergan, Inc.
- The net earnings demonstrated significant fluctuations during the observed periods. Starting at 158.3 million USD in the first quarter of 2011, there was an overall upward trend with peaks generally observed in the final quarters of each year. Notably, net earnings reached approximately 537.2 million USD by the end of 2014, indicating substantial growth compared to the initial quarter. However, a sharp decline was evident in the first quarter of 2013, where earnings dropped to 12.5 million USD, representing a notable anomaly within the data series. Following this dip, the figures rebounded strongly and continued to increase throughout 2013 and 2014.
- Product Net Sales
- Product net sales showed a consistent upward trajectory throughout the entire period. Beginning at 1.2528 billion USD in the first quarter of 2011, sales increased steadily with minor quarter-to-quarter variations. By the end of 2014, product net sales reached 1.889 billion USD, reflecting a growth of over 50% from the beginning of the period. This steady rise suggests a strengthening market position and expanding revenue base.
- Net Profit Margin
- The net profit margin exhibited considerable improvement from negative or near-break-even values in early 2011 to more stable and positive margins thereafter. Initially, margins were slightly negative or very low in the first two quarters of 2011, indicating limited profitability or losses. From the third quarter of 2011 onwards, margins stabilized and generally ranged between 15% to over 21%. By the end of 2014, net profit margin culminated at 21.39%, signaling enhanced efficiency and profitability in the company’s operations. The minor fluctuations observed during this period suggest effective cost management and perhaps beneficial shifts in product mix or pricing strategy.
- Overall Insights
- The data reflect a company experiencing substantial growth in product sales alongside improving profitability metrics. The temporary dip in net earnings in early 2013 contrasts with the broader positive trends, which may suggest the impact of an isolated event or adjustment during that quarter. The continued increase in net profit margin after 2011 highlights the capability to convert rising sales into improved earnings effectively. The overall performance trend through 2014 indicates strengthening financial health and operational success.
Return on Equity (ROE)
Allergan Inc., ROE calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Net earnings (loss) attributable to Allergan, Inc. | 537,200) | 312,500) | 417,200) | 257,300) | 312,900) | 299,800) | 359,900) | 12,500) | 324,200) | 249,400) | 295,400) | 229,800) | 279,800) | 249,800) | 246,600) | 158,300) | |||||
| Total Allergan, Inc. stockholders’ equity | 7,753,000) | 7,110,700) | 6,786,000) | 6,617,900) | 6,463,200) | 6,085,900) | 5,721,900) | 5,337,100) | 5,837,100) | 5,569,600) | 5,438,800) | 5,458,600) | 5,309,600) | 5,105,700) | 4,963,900) | 4,865,700) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | 19.66% | 18.28% | 18.97% | 18.58% | 15.24% | 16.37% | 16.53% | 16.52% | 18.82% | 18.93% | 19.39% | 18.43% | 17.60% | 17.98% | -0.05% | -0.18% | |||||
| Benchmarks | |||||||||||||||||||||
| ROE, 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Vertex Pharmaceuticals Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q4 2014 Calculation
ROE = 100
× (Net earnings (loss) attributable to Allergan, Inc.Q4 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q3 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q2 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q1 2014)
÷ Total Allergan, Inc. stockholders’ equity
= 100 × (537,200 + 312,500 + 417,200 + 257,300)
÷ 7,753,000 = 19.66%
2 Click competitor name to see calculations.
The analysis of quarterly financial data indicates several noteworthy trends in the company's performance over the examined periods.
- Net Earnings
-
Net earnings attributable to the company exhibited considerable variability across the quarters. Initially, there was a rising trend from 158,300 in the first quarter of 2011 to a peak of 324,200 in the fourth quarter of 2012. Subsequently, earnings demonstrated fluctuations with a notable dip in the first quarter of 2013 down to 12,500, followed by a recovery and growth, reaching a high of 537,200 in the last quarter of 2014. This pattern suggests cyclical influences or irregular events impacting profitability in certain quarters, but overall a strong upward trend by the end of the timeframe.
- Total Stockholders’ Equity
-
The stockholders’ equity consistently increased throughout the periods, starting at 4,865,700 in early 2011 and rising steadily to 7,753,000 by the end of 2014. This growth reflects strengthening capital base and retained earnings accumulation, indicating solid financial foundation and potentially ongoing reinvestment into the company.
- Return on Equity (ROE)
-
ROE metrics showed fluctuations initially, with negative values in the early quarters of 2011 (-0.18% and -0.05%), before stabilizing into a range between approximately 15% and 19% from late 2011 onwards. Although there were minor declines, the overall trend points to sustained efficient generation of profit relative to equity. By the end of 2014, ROE reached approximately 19.66%, indicative of improved profitability efficiency over the period.
In summary, the company demonstrated strong growth in net earnings with some short-term volatility, a continuous increase in equity capital, and generally robust returns on equity. The data appears to reflect an overall strengthening financial position and effective utilization of equity to generate profits over the covered quarterly periods.
Return on Assets (ROA)
Allergan Inc., ROA calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Net earnings (loss) attributable to Allergan, Inc. | 537,200) | 312,500) | 417,200) | 257,300) | 312,900) | 299,800) | 359,900) | 12,500) | 324,200) | 249,400) | 295,400) | 229,800) | 279,800) | 249,800) | 246,600) | 158,300) | |||||
| Total assets | 12,415,700) | 11,645,800) | 10,990,800) | 10,720,200) | 10,574,300) | 10,144,600) | 9,675,000) | 9,250,500) | 9,179,300) | 8,910,900) | 8,673,400) | 8,684,200) | 8,508,600) | 8,184,000) | 7,879,600) | 8,370,700) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | 12.28% | 11.16% | 11.71% | 11.47% | 9.32% | 9.82% | 9.78% | 9.53% | 11.97% | 11.83% | 12.16% | 11.58% | 10.98% | 11.21% | -0.03% | -0.11% | |||||
| Benchmarks | |||||||||||||||||||||
| ROA, 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Vertex Pharmaceuticals Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q4 2014 Calculation
ROA = 100
× (Net earnings (loss) attributable to Allergan, Inc.Q4 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q3 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q2 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q1 2014)
÷ Total assets
= 100 × (537,200 + 312,500 + 417,200 + 257,300)
÷ 12,415,700 = 12.28%
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to Allergan, Inc.
- Over the observed periods, net earnings demonstrated significant volatility. Initial quarterly earnings showed a generally increasing trend, reaching a peak of 324,200 thousand US dollars in December 2012. This was followed by a notable decline in the March 2013 quarter to 12,500 thousand US dollars, representing a significant drop compared to previous quarters. Subsequently, net earnings resumed an upward trajectory, culminating in the highest recorded value of 537,200 thousand US dollars at the end of 2014. This fluctuation may suggest episodic factors impacting profitability, including possible one-time charges or gains.
- Total Assets
- Total assets showed a consistent, steady increase throughout the entire period. Starting from approximately 8,370,700 thousand US dollars in March 2011, the asset base gradually expanded, surpassing 12,415,700 thousand US dollars by December 2014. This continuous growth in assets indicates ongoing investment and asset accumulation, possibly related to business expansion or acquisition activities, contributing to an enhanced resource base over time.
- Return on Assets (ROA)
- The ROA percentage exhibited some initial irregularity, with negative values recorded at the beginning of the period (-0.11% and -0.03%). From September 2011 onward, ROA stabilized at a relatively high level, consistently remaining above 9%. Minor fluctuations were observed, with peaks around 12.28% at the end of 2014. This sustained robust ROA suggests improved efficiency in utilizing assets to generate earnings, reflecting effective management of asset deployment.