Stock Analysis on Net

Allergan Inc. (NYSE:AGN.)

This company has been moved to the archive! The financial data has not been updated since February 19, 2015.

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Allergan Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Turnover Ratios
Inventory turnover 2.85 2.79 2.74 3.00 3.15
Receivables turnover 7.79 7.02 7.47 7.32 7.45
Payables turnover 2.93 2.81 3.33 3.74 3.24
Working capital turnover 1.34 1.52 1.70 1.73 1.95
Average No. Days
Average inventory processing period 128 131 133 122 116
Add: Average receivable collection period 47 52 49 50 49
Operating cycle 175 183 182 172 165
Less: Average payables payment period 125 130 110 98 112
Cash conversion cycle 50 53 72 74 53

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Allergan Inc. inventory turnover ratio improved from 2012 to 2013 and from 2013 to 2014.
Receivables turnover An activity ratio equal to revenue divided by receivables. Allergan Inc. receivables turnover ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Allergan Inc. payables turnover ratio decreased from 2012 to 2013 but then slightly increased from 2013 to 2014.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Allergan Inc. working capital turnover ratio deteriorated from 2012 to 2013 and from 2013 to 2014.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Allergan Inc. number of days of inventory outstanding improved from 2012 to 2013 and from 2013 to 2014.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Allergan Inc. number of days of receivables outstanding deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Allergan Inc. operating cycle deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Allergan Inc. number of days of payables outstanding increased from 2012 to 2013 but then slightly decreased from 2013 to 2014.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Allergan Inc. cash conversion cycle improved from 2012 to 2013 and from 2013 to 2014.

Inventory Turnover

Allergan Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in thousands)
Cost of sales, excludes amortization of intangible assets 842,400 795,800 775,500 748,700 722,000
Inventories 296,000 285,300 282,900 249,700 229,400
Short-term Activity Ratio
Inventory turnover1 2.85 2.79 2.74 3.00 3.15
Benchmarks
Inventory Turnover, Competitors2
AbbVie Inc.
Amgen Inc.
Bristol-Myers Squibb Co.
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
Inventory turnover = Cost of sales, excludes amortization of intangible assets ÷ Inventories
= 842,400 ÷ 296,000 = 2.85

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Allergan Inc. inventory turnover ratio improved from 2012 to 2013 and from 2013 to 2014.

Receivables Turnover

Allergan Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in thousands)
Product net sales 7,126,100 6,197,500 5,708,800 5,347,100 4,819,600
Trade receivables, net 914,500 883,300 764,200 730,600 647,300
Short-term Activity Ratio
Receivables turnover1 7.79 7.02 7.47 7.32 7.45
Benchmarks
Receivables Turnover, Competitors2
AbbVie Inc.
Amgen Inc.
Bristol-Myers Squibb Co.
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
Receivables turnover = Product net sales ÷ Trade receivables, net
= 7,126,100 ÷ 914,500 = 7.79

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Allergan Inc. receivables turnover ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.

Payables Turnover

Allergan Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in thousands)
Cost of sales, excludes amortization of intangible assets 842,400 795,800 775,500 748,700 722,000
Accounts payable 287,400 283,200 233,100 200,400 222,500
Short-term Activity Ratio
Payables turnover1 2.93 2.81 3.33 3.74 3.24
Benchmarks
Payables Turnover, Competitors2
AbbVie Inc.
Amgen Inc.
Bristol-Myers Squibb Co.
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
Payables turnover = Cost of sales, excludes amortization of intangible assets ÷ Accounts payable
= 842,400 ÷ 287,400 = 2.93

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Allergan Inc. payables turnover ratio decreased from 2012 to 2013 but then slightly increased from 2013 to 2014.

Working Capital Turnover

Allergan Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
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
Less: Current liabilities 1,557,300 1,244,300 1,095,200 955,000 1,528,400
Working capital 5,313,900 4,075,400 3,363,600 3,093,300 2,465,300
 
Product net sales 7,126,100 6,197,500 5,708,800 5,347,100 4,819,600
Short-term Activity Ratio
Working capital turnover1 1.34 1.52 1.70 1.73 1.95
Benchmarks
Working Capital Turnover, Competitors2
AbbVie Inc.
Amgen Inc.
Bristol-Myers Squibb Co.
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
Working capital turnover = Product net sales ÷ Working capital
= 7,126,100 ÷ 5,313,900 = 1.34

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Allergan Inc. working capital turnover ratio deteriorated from 2012 to 2013 and from 2013 to 2014.

Average Inventory Processing Period

Allergan Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data
Inventory turnover 2.85 2.79 2.74 3.00 3.15
Short-term Activity Ratio (no. days)
Average inventory processing period1 128 131 133 122 116
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
AbbVie Inc.
Amgen Inc.
Bristol-Myers Squibb Co.
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.85 = 128

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Allergan Inc. number of days of inventory outstanding improved from 2012 to 2013 and from 2013 to 2014.

Average Receivable Collection Period

Allergan Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data
Receivables turnover 7.79 7.02 7.47 7.32 7.45
Short-term Activity Ratio (no. days)
Average receivable collection period1 47 52 49 50 49
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
AbbVie Inc.
Amgen Inc.
Bristol-Myers Squibb Co.
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.79 = 47

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Allergan Inc. number of days of receivables outstanding deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.

Operating Cycle

Allergan Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data
Average inventory processing period 128 131 133 122 116
Average receivable collection period 47 52 49 50 49
Short-term Activity Ratio
Operating cycle1 175 183 182 172 165
Benchmarks
Operating Cycle, Competitors2
AbbVie Inc.
Amgen Inc.
Bristol-Myers Squibb Co.
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 128 + 47 = 175

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Allergan Inc. operating cycle deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.

Average Payables Payment Period

Allergan Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data
Payables turnover 2.93 2.81 3.33 3.74 3.24
Short-term Activity Ratio (no. days)
Average payables payment period1 125 130 110 98 112
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
AbbVie Inc.
Amgen Inc.
Bristol-Myers Squibb Co.
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.93 = 125

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Allergan Inc. number of days of payables outstanding increased from 2012 to 2013 but then slightly decreased from 2013 to 2014.

Cash Conversion Cycle

Allergan Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data
Average inventory processing period 128 131 133 122 116
Average receivable collection period 47 52 49 50 49
Average payables payment period 125 130 110 98 112
Short-term Activity Ratio
Cash conversion cycle1 50 53 72 74 53
Benchmarks
Cash Conversion Cycle, Competitors2
AbbVie Inc.
Amgen Inc.
Bristol-Myers Squibb Co.
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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 128 + 47125 = 50

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Allergan Inc. cash conversion cycle improved from 2012 to 2013 and from 2013 to 2014.