Microsoft Excel LibreOffice Calc

Allergan PLC (NYSE:AGN)


Financial Reporting Quality: Aggregate Accruals

Advanced level


Balance-Sheet-Based Accruals Ratio

Allergan PLC, balance sheet computation of aggregate accruals

US$ in thousands

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Operating Assets
Total assets 94,699,100  101,787,600  118,341,900  128,986,300  135,840,700 
Less: Cash and cash equivalents 2,503,300  880,400  1,817,200  1,724,000  1,096,000 
Less: Marketable securities 3,411,600  1,026,900  4,632,100  11,501,500  9,300 
Operating assets 88,784,200  99,880,300  111,892,600  115,760,800  134,735,400 
Operating Liabilities
Total liabilities 36,502,700  36,656,600  44,504,800  52,785,800  59,251,400 
Less: Current portion of long-term debt and capital leases 4,532,500  868,300  4,231,800  2,797,900  2,432,800 
Less: Long-term debt and capital leases, excluding current portion 18,116,500  22,929,400  25,843,500  29,970,800  40,293,400 
Operating liabilities 13,853,700  12,858,900  14,429,500  20,017,100  16,525,200 
 
Net operating assets1 74,930,500  87,021,400  97,463,100  95,743,700  118,210,200 
Balance-sheet-based aggregate accruals2 (12,090,900) (10,441,700) 1,719,400  (22,466,500)
Financial Ratio
Balance-sheet-based accruals ratio3 -14.93% -11.32% 1.78% -21.00%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Abbott Laboratories -1.97% -6.71% 69.42% -1.06%
AbbVie Inc. -24.37% -31.42% -7.02% 25.20%
Amgen Inc. 56.66% -9.88% -33.04% -6.85%
Biogen Inc. -4.05% 3.85% 7.67% 9.75%
Bristol-Myers Squibb Co. 147.33% -3.17% -24.97% -0.82%
Eli Lilly & Co. -0.10% -10.27% -5.99% 1.26%
Gilead Sciences Inc. 19.80% -41.29% -16.94% 23.56%
Johnson & Johnson -3.85% -8.03% 31.51% 5.55%
Merck & Co. Inc. -2.90% -15.70% -0.65% -12.97%
Pfizer Inc. 19.85% -9.34% 12.36% 4.12%
Regeneron Pharmaceuticals Inc. 25.36% 20.14% 33.15% 26.37%
Vertex Pharmaceuticals Inc. 42.22% 110.08% -29.69% -17.29%
Zoetis Inc. 4.03% 29.08% -1.25% 8.66%
Balance-Sheet-Based Accruals Ratio, Sector
Pharmaceuticals & Biotechnology 17.68% -11.07% 8.50% -1.64%
Balance-Sheet-Based Accruals Ratio, Industry
Health Care 14.02% -2.34% 8.21% 1.00%

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).

1 2019 Calculation
Net operating assets = Operating assets – Operating liabilities
= 88,784,20013,853,700 = 74,930,500

2 2019 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2019 – Net operating assets2018
= 74,930,50087,021,400 = -12,090,900

3 2019 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -12,090,900 ÷ [(74,930,500 + 87,021,400) ÷ 2] = -14.93%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Allergan PLC deteriorated earnings quality from 2018 to 2019.

Cash-Flow-Statement-Based Accruals Ratio

Allergan PLC, cash flow statement computation of aggregate accruals

US$ in thousands

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income (loss) attributable to shareholders (5,271,000) (5,096,400) (4,125,500) 14,973,400  3,915,200 
Less: Net cash provided by operating activities 7,238,700  5,640,100  5,873,400  1,425,300  4,530,000 
Less: Net cash (used in) provided by investing activities (2,858,800) 3,098,500  (878,000) 24,333,300  (37,120,900)
Cash-flow-statement-based aggregate accruals (9,650,900) (13,835,000) (9,120,900) (10,785,200) 36,506,100 
Financial Ratio
Cash-flow-statement-based accruals ratio1 -11.92% -15.00% -9.44% -10.08%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Abbott Laboratories -1.39% -5.39% 12.34% -6.46%
AbbVie Inc. -28.46% -23.85% -12.92% 16.02%
Amgen Inc. -29.37% -95.70% -22.85% 22.06%
Biogen Inc. -10.98% 1.91% 6.65% 12.70%
Bristol-Myers Squibb Co. 10.75% -1.14% -28.29% 0.76%
Eli Lilly & Co. 74.20% -25.54% -11.43% 5.63%
Gilead Sciences Inc. 19.49% -73.15% 28.23% 29.15%
Johnson & Johnson -3.04% -5.08% -7.40% 4.68%
Merck & Co. Inc. -2.28% -19.26% -13.29% -5.97%
Pfizer Inc. 7.93% -10.12% 10.69% -1.06%
Regeneron Pharmaceuticals Inc. 22.48% 28.32% 19.22% 13.64%
Vertex Pharmaceuticals Inc. 35.87% 86.04% -22.78% -57.04%
Zoetis Inc. 2.95% 31.33% -4.07% 6.41%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Pharmaceuticals & Biotechnology 0.62% -16.51% -2.50% 1.94%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Health Care 2.41% -7.81% -0.36% 3.03%

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).

1 2019 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -9,650,900 ÷ [(74,930,500 + 87,021,400) ÷ 2] = -11.92%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Allergan PLC improved earnings quality from 2018 to 2019.