Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Allergan PLC (NYSE:AGN)

This company was transferred to the archive: financial data is no longer updated!

Analysis of Goodwill and Intangible Assets

Advanced level

Goodwill and Intangible Asset Disclosure

Allergan PLC, balance sheet: goodwill and intangible assets

US$ in thousands

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Product rights and other intangibles 72,217,500  70,235,100  73,892,500  67,801,400  64,544,200 
Trade name 690,000  690,000  690,000  690,000  690,000 
Definite lived intangible assets, cost basis 72,907,500  70,925,100  74,582,500  68,491,400  65,234,200 
Accumulated amortization (39,553,400) (32,277,800) (25,808,300) (14,631,100) (8,506,900)
Definite lived intangible assets, net 33,354,100  38,647,300  48,774,200  53,860,300  56,727,300 
IPR&D 4,536,500  5,048,100  5,874,100  8,758,300  11,128,200 
Trade name —  —  —  —  76,200 
Indefinite lived intangible assets 4,536,500  5,048,100  5,874,100  8,758,300  11,204,400 
Net product rights and other intangibles 37,890,600  43,695,400  54,648,300  62,618,600  67,931,700 
Goodwill 42,248,300  45,913,300  49,862,900  46,356,100  46,551,500 
Goodwill, product rights and other intangible assets 80,138,900  89,608,700  104,511,200  108,974,700  114,483,200 

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

Item Description The company
Net product rights and other intangibles Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Allergan PLC’s net product rights and other intangibles decreased from 2017 to 2018 and from 2018 to 2019.
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Allergan PLC’s goodwill decreased from 2017 to 2018 and from 2018 to 2019.
Goodwill, product rights and other intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Allergan PLC’s goodwill, product rights and other intangible assets decreased from 2017 to 2018 and from 2018 to 2019.

Adjustments to Financial Statements: Removal of Goodwill

Allergan PLC, adjustments to financial statements

US$ in thousands

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 94,699,100  101,787,600  118,341,900  128,986,300  135,840,700 
Less: Goodwill 42,248,300  45,913,300  49,862,900  46,356,100  46,551,500 
Total assets (adjusted) 52,450,800  55,874,300  68,479,000  82,630,200  89,289,200 
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported) 58,173,600  65,114,100  73,821,100  76,192,700  76,591,400 
Less: Goodwill 42,248,300  45,913,300  49,862,900  46,356,100  46,551,500 
Shareholders’ equity (adjusted) 15,925,300  19,200,800  23,958,200  29,836,600  30,039,900 
Adjustment to Net Income (loss) Attributable To Shareholders
Net income (loss) attributable to shareholders (as reported) (5,271,000) (5,096,400) (4,125,500) 14,973,400  3,915,200 
Add: Goodwill impairments 3,552,800  2,841,100  —  —  — 
Net income (loss) attributable to shareholders (adjusted) (1,718,200) (2,255,300) (4,125,500) 14,973,400  3,915,200 

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).


Allergan PLC, Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Allergan PLC, adjusted financial ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin -32.76% -32.28% -25.88% 102.76% 25.98%
Adjusted net profit margin -10.68% -14.29% -25.88% 102.76% 25.98%
Total Asset Turnover
Reported total asset turnover 0.17 0.16 0.13 0.11 0.11
Adjusted total asset turnover 0.31 0.28 0.23 0.18 0.17
Financial Leverage
Reported financial leverage 1.63 1.56 1.60 1.69 1.77
Adjusted financial leverage 3.29 2.91 2.86 2.77 2.97
Return on Equity (ROE)
Reported ROE -9.06% -7.83% -5.59% 19.65% 5.11%
Adjusted ROE -10.79% -11.75% -17.22% 50.18% 13.03%
Return on Assets (ROA)
Reported ROA -5.57% -5.01% -3.49% 11.61% 2.88%
Adjusted ROA -3.28% -4.04% -6.02% 18.12% 4.38%

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Allergan PLC’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Allergan PLC’s adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Allergan PLC’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Allergan PLC’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Allergan PLC’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

Allergan PLC, Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to shareholders (5,271,000) (5,096,400) (4,125,500) 14,973,400  3,915,200 
Net revenues 16,088,900  15,787,400  15,940,700  14,570,600  15,071,000 
Profitability Ratio
Net profit margin1 -32.76% -32.28% -25.88% 102.76% 25.98%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to shareholders (1,718,200) (2,255,300) (4,125,500) 14,973,400  3,915,200 
Net revenues 16,088,900  15,787,400  15,940,700  14,570,600  15,071,000 
Profitability Ratio
Adjusted net profit margin2 -10.68% -14.29% -25.88% 102.76% 25.98%

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

2019 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to shareholders ÷ Net revenues
= 100 × -5,271,000 ÷ 16,088,900 = -32.76%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to shareholders ÷ Net revenues
= 100 × -1,718,200 ÷ 16,088,900 = -10.68%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Allergan PLC’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net revenues 16,088,900  15,787,400  15,940,700  14,570,600  15,071,000 
Total assets 94,699,100  101,787,600  118,341,900  128,986,300  135,840,700 
Activity Ratio
Total asset turnover1 0.17 0.16 0.13 0.11 0.11
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net revenues 16,088,900  15,787,400  15,940,700  14,570,600  15,071,000 
Adjusted total assets 52,450,800  55,874,300  68,479,000  82,630,200  89,289,200 
Activity Ratio
Adjusted total asset turnover2 0.31 0.28 0.23 0.18 0.17

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

2019 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 16,088,900 ÷ 94,699,100 = 0.17

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 16,088,900 ÷ 52,450,800 = 0.31

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Allergan PLC’s adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Total assets 94,699,100  101,787,600  118,341,900  128,986,300  135,840,700 
Shareholders’ equity 58,173,600  65,114,100  73,821,100  76,192,700  76,591,400 
Solvency Ratio
Financial leverage1 1.63 1.56 1.60 1.69 1.77
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 52,450,800  55,874,300  68,479,000  82,630,200  89,289,200 
Adjusted shareholders’ equity 15,925,300  19,200,800  23,958,200  29,836,600  30,039,900 
Solvency Ratio
Adjusted financial leverage2 3.29 2.91 2.86 2.77 2.97

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

2019 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity
= 94,699,100 ÷ 58,173,600 = 1.63

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 52,450,800 ÷ 15,925,300 = 3.29

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Allergan PLC’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to shareholders (5,271,000) (5,096,400) (4,125,500) 14,973,400  3,915,200 
Shareholders’ equity 58,173,600  65,114,100  73,821,100  76,192,700  76,591,400 
Profitability Ratio
ROE1 -9.06% -7.83% -5.59% 19.65% 5.11%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to shareholders (1,718,200) (2,255,300) (4,125,500) 14,973,400  3,915,200 
Adjusted shareholders’ equity 15,925,300  19,200,800  23,958,200  29,836,600  30,039,900 
Profitability Ratio
Adjusted ROE2 -10.79% -11.75% -17.22% 50.18% 13.03%

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

2019 Calculations

1 ROE = 100 × Net income (loss) attributable to shareholders ÷ Shareholders’ equity
= 100 × -5,271,000 ÷ 58,173,600 = -9.06%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to shareholders ÷ Adjusted shareholders’ equity
= 100 × -1,718,200 ÷ 15,925,300 = -10.79%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Allergan PLC’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to shareholders (5,271,000) (5,096,400) (4,125,500) 14,973,400  3,915,200 
Total assets 94,699,100  101,787,600  118,341,900  128,986,300  135,840,700 
Profitability Ratio
ROA1 -5.57% -5.01% -3.49% 11.61% 2.88%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to shareholders (1,718,200) (2,255,300) (4,125,500) 14,973,400  3,915,200 
Adjusted total assets 52,450,800  55,874,300  68,479,000  82,630,200  89,289,200 
Profitability Ratio
Adjusted ROA2 -3.28% -4.04% -6.02% 18.12% 4.38%

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

2019 Calculations

1 ROA = 100 × Net income (loss) attributable to shareholders ÷ Total assets
= 100 × -5,271,000 ÷ 94,699,100 = -5.57%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to shareholders ÷ Adjusted total assets
= 100 × -1,718,200 ÷ 52,450,800 = -3.28%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Allergan PLC’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.