Allergan PLC (NYSE:AGN)

Current Assets

The value of current assets demonstrates a notable fluctuation over the period from 2015 to 2019. Initially, there is a significant increase from approximately 8.6 billion in 2015 to around 17.9 billion in 2016. However, this peak is followed by a sharp decline to roughly 11.4 billion in 2017, then a further drop to about 6.5 billion in 2018. The figure recovers partially in 2019, reaching approximately 11.1 billion. This volatility suggests varying operational or financial conditions affecting short-term asset holdings.

Adjusted Current Assets

The adjusted current assets closely mirror the trend seen in current assets across the evaluated years, starting at approximately 8.7 billion in 2015 and peaking near 17.9 billion in 2016. A downward trend follows with values decreasing to about 11.5 billion in 2017 and further to around 6.6 billion by 2018. By the end of 2019, adjusted current assets increase again to roughly 11.2 billion. The minimal differences between adjusted and unadjusted figures imply that the adjustments made are relatively minor and do not drastically impact the overall asset assessment.

The analysis of the annual financial data reveals a consistent downward trend in both total assets and adjusted total assets over the five-year period from 2015 to 2019.

Total Assets

Total assets decreased steadily each year, starting from approximately US$135.8 billion at the end of 2015 and declining to about US$94.7 billion by the end of 2019. This represents a cumulative reduction of roughly 30% over the period. The decline appears relatively smooth without any significant fluctuations or reversals, indicating a persistent contraction or divestment of asset holdings.

Adjusted Total Assets

Adjusted total assets follow a very similar pattern to total assets, with values marginally higher at each point in time. Adjusted total assets fell from around US$136.0 billion in 2015 to approximately US$94.2 billion in 2019. This consistent decrease aligns closely with the trend observed in total assets, confirming the overall shrinkage in the asset base when considering any adjustments applied.

Overall, the data suggests that the company has been reducing its asset base gradually over these years. The lack of volatility and the parallel trends between total and adjusted assets may imply deliberate strategic asset reduction, such as asset sales, restructuring, or efficiency-driven downsizing. Continuous monitoring would be advisable to understand the underlying causes and implications on operational capacity and financial stability going forward.

Current Liabilities

The current liabilities demonstrate variability over the five-year period. Starting at approximately 8.33 billion USD at the end of 2015, the figure decreased to about 7.87 billion USD in 2016, indicating a reduction in short-term obligations. However, in 2017, there was a significant increase, reaching approximately 9.85 billion USD, followed by a sharp decline in 2018 to roughly 5.73 billion USD. The year 2019 saw a pronounced rise to approximately 11.07 billion USD, representing the highest value in the period assessed.

Adjusted Current Liabilities

The adjusted current liabilities closely track the same pattern as the unadjusted current liabilities, with values consistently slightly lower. The figures moved from approximately 8.21 billion USD in 2015 down to 7.79 billion USD in 2016, increased markedly in 2017 to roughly 9.72 billion USD, then decreased sharply in 2018 to about 5.66 billion USD. In 2019, adjusted liabilities rose sharply again, reaching around 11.06 billion USD. The alignment of trends between adjusted and unadjusted liabilities suggests that any adjustments made do not materially alter the overall picture of short-term liabilities.

Overall Trends and Insights

Both current liabilities and adjusted current liabilities show significant fluctuations, marked by a peak in 2017, a considerable drop in 2018, and a substantial rise in 2019. This pattern may indicate episodic changes in the company's short-term financing or operational obligations, potentially reflecting strategic financial management decisions, acquisition activities, or shifts in working capital requirements. The substantial increase in 2019 could warrant further investigation to understand the underlying causes, such as increased borrowings or payables.

Total liabilities

The total liabilities demonstrate a consistent and substantial downward trend over the five-year period. Starting at approximately 59.25 billion US dollars in 2015, the liabilities decreased each year, reaching about 36.50 billion US dollars by the end of 2019. This reduction represents a cumulative decline of roughly 38%, indicating a strategic effort or successful execution in reducing the company's overall obligations.

Adjusted total liabilities

Adjusted total liabilities also show a steady decline throughout the same period, although the values are consistently lower than the unadjusted figures. Beginning at roughly 51.23 billion US dollars in 2015, the adjusted liabilities fell to approximately 32.06 billion by 2019. This reduction equates to a decrease of nearly 37%, reflecting a similar downward trend as the total liabilities. The divergence between total and adjusted liabilities may suggest adjustments made for specific accounting treatments or one-time items, but both metrics reinforce the pattern of decreasing financial leverage or obligations.

Overall insight

The observable trend in both total and adjusted liabilities is a marked and continuous reduction over the five years. This pattern could indicate deliberate liability management efforts, possibly through debt repayment or restructuring activities. The decreasing liabilities could positively influence the company’s financial stability, risk profile, and creditworthiness.

Shareholders’ Equity

The shareholders’ equity shows a consistent downward trend over the five-year period. Starting at approximately 76.6 billion US dollars in 2015, it slightly decreased to 76.2 billion in 2016. This decline continued more markedly in subsequent years, reaching around 73.8 billion in 2017, then dropping sharply to 65.1 billion in 2018, and finally settling at approximately 58.2 billion in 2019. The overall decline over this period is significant, indicating a reduction in the net assets attributable to shareholders.

Adjusted Total Equity

The adjusted total equity figures initially rise slightly from about 84.8 billion US dollars in 2015 to approximately 89.2 billion in 2016. Following this peak, there is a noticeable decline over the next three years, with adjusted total equity falling to roughly 80.2 billion in 2017, then further decreasing to approximately 69.8 billion in 2018, and ultimately reaching around 62.2 billion in 2019. Despite the initial increase, the subsequent downward trend aligns broadly with the pattern observed in shareholders’ equity, reflecting a weakening in the company’s adjusted equity position over the period.

Summary of Trends

Both shareholders’ equity and adjusted total equity exhibit a downward trajectory from 2016 onward. The initial stability or slight increase in adjusted equity in 2016 contrasts with the steady decline in shareholders’ equity for the same year. From 2017 to 2019, both measures consistently decrease, suggesting potential challenges or changes in financial structure, profitability, or capital management that have adversely affected the equity base. The considerable reduction in equity levels over these years could imply increased liabilities, dividend payments, share repurchases, or losses impacting the company’s financial strength.

The financial data reveals notable trends in the company's capital structure and balance sheet composition over the five-year period ending December 31, 2019. There is a clear downward trend in total reported debt and its adjusted counterpart, reflecting consistent debt reduction efforts.

Total Reported Debt

This metric declines steadily from $42.7 billion in 2015 to $22.6 billion in 2019, representing a nearly 47% reduction over the period. This indicates significant deleveraging and a possible focus on reducing financial risk or interest expenses.

Shareholders' Equity

Shareholders' equity decreases from approximately $76.6 billion in 2015 to $58.2 billion in 2019, showing a decline of about 24%. This contraction may reflect share buybacks, dividend payments in excess of earnings, or other equity reductions.

Total Reported Capital

Total reported capital, the sum of debt and equity, fell from about $119.3 billion in 2015 to $80.8 billion in 2019, a decrease of approximately 32%. The reduction in capital is driven by declines in both equity and debt components, with debt reducing more sharply.

Adjusted Measures

Adjusted total debt and adjusted total equity follow similar downward trends as their reported counterparts, though adjusted equity exhibits a less consistent trajectory. For example, adjusted equity increased from $84.8 billion in 2015 to a peak of $89.2 billion in 2016 before declining to $62.2 billion in 2019. This suggests adjustments involve elements that temporarily boosted equity in the 2016 period.

Overall Capital Structure

Adjusted total capital exhibits a decrease from $127.7 billion in 2015 to $85.4 billion in 2019, aligning with the pattern observed in reported capital. The decline in capital suggests the company has been shrinking its overall balance sheet size during this timeframe.

Summary

Overall, the data indicates a strategic move towards balance sheet consolidation and deleveraging, with total debt nearly halving. Shareholders’ equity has also decreased, though less sharply, which may impact leverage ratios differently depending on the adjusted or reported figures considered. These trends suggest a focus on reducing financial liabilities while managing equity levels, potentially to optimize the capital structure or respond to changing business conditions.

Net Revenues

Net revenues exhibited a fluctuating trend over the five-year period. There was a decline from 15,071,000 thousand US dollars in 2015 to 14,570,600 thousand US dollars in 2016. This was followed by a recovery in 2017, where net revenues increased to 15,940,700 thousand US dollars. In the subsequent years, net revenues remained relatively stable with a slight decrease to 15,787,400 thousand US dollars in 2018, before rising again to 16,088,900 thousand US dollars in 2019.

Adjusted Net Revenues

The adjusted net revenues closely mirrored the pattern observed in net revenues over the same period. Starting at 15,062,900 thousand US dollars in 2015, adjusted net revenues decreased to 14,568,100 thousand US dollars in 2016. A notable increase occurred in 2017 reaching 15,962,900 thousand US dollars, followed by a marginal decrease to 15,785,600 thousand US dollars in 2018, and then a slight upward movement to 16,079,400 thousand US dollars in 2019. The minor differences between net revenues and adjusted net revenues suggest adjustments had a relatively small impact on overall revenue figures throughout the period.

The financial data reveals notable fluctuations and challenges in profitability over the examined period from 2015 to 2019.

Net income (loss) attributable to shareholders

The net income demonstrated significant volatility. In 2015, net income was positive at approximately 3.9 billion US dollars, followed by a sharp increase to nearly 15 billion US dollars in 2016, indicating a peak in profitability for the observed years.

However, from 2017 onwards, the company experienced substantial losses, with negative net income reported for three consecutive years. The losses increased progressively, reaching approximately -5.27 billion US dollars by the end of 2019. This trend suggests potential operational or market challenges affecting financial performance during the latter part of the period.

Adjusted net income (loss)

The adjusted net income consistently showed negative values throughout the entire period, indicating persistent adjustments leading to losses beyond the reported net income figures.

In 2015, the adjusted net loss was approximately -4.57 billion US dollars, improving slightly to around -3.57 billion US dollars in 2016. However, this was followed by a worsening trend in 2017 with losses reaching about -8.43 billion US dollars.

Subsequent years showed some recovery, but adjusted losses remained substantial, with around -6.95 billion in 2018 and -6.13 billion US dollars in 2019, reflecting ongoing financial impairments or non-recurring items negatively influencing core profitability.

Overall, while the company experienced a peak in net income in 2016, the overall trend for both net income and adjusted net income indicates increasing financial challenges and declining profitability over the period studied, particularly from 2017 to 2019.