Current Ratio
since 2005
Calculation
Allergan PLC, current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2019 | 1.01 | = | 11,126,700) | ÷ | 11,070,700) |
| Dec 31, 2018 | 1.13 | = | 6,475,400) | ÷ | 5,727,900) |
| Dec 31, 2017 | 1.16 | = | 11,376,700) | ÷ | 9,848,100) |
| Dec 31, 2016 | 2.27 | = | 17,857,900) | ÷ | 7,874,700) |
| Dec 31, 2015 | 1.03 | = | 8,615,400) | ÷ | 8,328,300) |
| Dec 31, 2014 | 1.37 | = | 6,881,700) | ÷ | 5,018,600) |
| Dec 31, 2013 | 1.35 | = | 4,434,700) | ÷ | 3,294,900) |
| Dec 31, 2012 | 1.43 | = | 3,879,700) | ÷ | 2,710,600) |
| Dec 31, 2011 | 1.40 | = | 2,569,700) | ÷ | 1,839,500) |
| Dec 31, 2010 | 2.19 | = | 1,799,400) | ÷ | 820,700) |
| Dec 31, 2009 | 1.68 | = | 1,771,000) | ÷ | 1,052,400) |
| Dec 31, 2008 | 3.03 | = | 1,458,417) | ÷ | 481,995) |
| Dec 31, 2007 | 2.64 | = | 1,173,776) | ÷ | 444,927) |
| Dec 31, 2006 | 1.83 | = | 1,261,676) | ÷ | 689,929) |
| Dec 31, 2005 | 5.54 | = | 1,360,430) | ÷ | 245,670) |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 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), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
- Current Assets
- The current assets exhibit an overall upward trend over the 15-year period, increasing from approximately 1,360,430 thousand US dollars in 2005 to 11,126,700 thousand US dollars in 2019. There are notable fluctuations, such as a decrease between 2005 and 2007, followed by a general rise peaking in 2016 at around 17,857,900 thousand US dollars. After 2016, current assets decline significantly in the subsequent two years before rising again in 2019.
- Current Liabilities
- Current liabilities also show substantial growth during the period, starting at 245,670 thousand US dollars in 2005 and increasing to 11,070,700 thousand US dollars in 2019. The liabilities display marked volatility, with significant jumps observed in 2006, 2009, 2011, and later years, while some decreases are noted after peaks, particularly after 2015, followed by another increase towards 2019.
- Current Ratio
- The current ratio demonstrates a declining trend in liquidity from 2005 onward. It starts from a high of 5.54 in 2005 but decreases sharply by 2006 to 1.83 and fluctuates mostly between 1.0 and 2.3 thereafter. The lowest values occur in the final years, with the ratio approaching 1.0 in 2019, indicating a reduction in the margin of current assets over current liabilities and a tighter liquidity position compared to earlier years.
- Summary of Financial Position Trends
- The analysis highlights that while both current assets and current liabilities have grown significantly, current liabilities have increased at a pace that narrows liquidity margins, as reflected in the declining current ratio. The company appears to have expanded its asset base, yet this growth has been accompanied by a proportionate rise in short-term obligations. The sharp fluctuations in current ratios indicate periods of tightening liquidity, especially in the latter years. The ratio close to unity at the end of the series suggests careful management of working capital is necessary to maintain operational solvency.
Comparison to Competitors
Allergan PLC, current ratio, long-term trends, comparison to competitors
| Allergan PLC | 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. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 1.01 | 3.18 | 1.44 | 1.60 | 5.19 | 1.16 | 3.10 | 1.26 | 1.24 | 0.88 | 3.67 | 1.92 | 3.61 |
| Dec 31, 2018 | 1.13 | 0.98 | 2.79 | 1.61 | 1.47 | 1.73 | 3.38 | 1.47 | 1.17 | 1.57 | 4.47 | 1.73 | 3.43 |
| Dec 31, 2017 | 1.16 | 1.28 | 5.49 | 1.55 | 1.43 | 1.32 | 2.74 | 1.41 | 1.33 | 1.35 | 3.82 | 1.34 | 3.28 |
| Dec 31, 2016 | 2.27 | 1.65 | 4.11 | 1.55 | 0.97 | 1.37 | 2.22 | 2.47 | 1.78 | 1.25 | 2.56 | 1.44 | 2.31 |
| Dec 31, 2015 | 1.03 | 1.50 | 4.44 | 1.30 | 1.27 | 1.53 | 2.50 | 2.17 | 1.55 | 1.49 | 3.59 | 1.38 | 2.78 |
| Dec 31, 2014 | 1.37 | 1.41 | 4.95 | 1.73 | 1.75 | 1.09 | 3.07 | 2.36 | 1.77 | 2.67 | 3.31 | 1.22 | 4.20 |
| Dec 31, 2013 | 1.35 | 2.59 | 3.44 | 1.52 | 2.01 | 1.47 | 1.15 | 2.20 | 2.00 | 2.41 | 6.01 | 3.16 | 3.99 |
| Dec 31, 2012 | 1.43 | 2.27 | 3.81 | 1.15 | 1.80 | 1.55 | 1.44 | 1.90 | 1.90 | 2.15 | 7.37 | 2.31 | 3.67 |
| Dec 31, 2011 | 1.40 | — | 4.80 | 1.97 | 1.50 | 1.60 | 5.53 | 2.38 | 2.04 | 2.06 | 4.40 | 1.55 | 3.39 |
| Dec 31, 2010 | 2.19 | — | 3.52 | 1.97 | 1.73 | 2.09 | 2.32 | 2.05 | 1.86 | 2.11 | 3.28 | 2.42 | 2.23 |
| Dec 31, 2009 | 1.68 | — | 4.89 | 2.21 | 1.89 | 1.90 | 2.57 | 1.82 | 1.80 | 1.66 | 4.55 | 2.76 | 4.59 |
| Dec 31, 2008 | 3.03 | — | 3.12 | 2.20 | 1.53 | 0.95 | 3.52 | 1.65 | 1.35 | 1.59 | 6.23 | 2.82 | 4.01 |
| Dec 31, 2007 | 2.64 | — | 2.11 | 1.20 | 1.40 | 2.33 | 4.11 | 1.51 | 1.23 | 2.15 | 2.81 | 1.93 | 2.49 |
| Dec 31, 2006 | 1.83 | — | 1.67 | 1.59 | 1.38 | 1.91 | 3.18 | 1.20 | 1.20 | 2.20 | 10.44 | 1.70 | 3.07 |
| Dec 31, 2005 | 5.54 | — | 2.57 | 1.78 | 1.30 | 1.89 | 6.79 | 2.48 | 1.58 | 1.47 | 8.46 | 1.71 | 3.84 |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 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), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Allergan PLC, current ratio, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Allergan PLC | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2019 | 1.01 | 1.66 |
| Dec 31, 2018 | 1.13 | 1.71 |
| Dec 31, 2017 | 1.16 | 1.74 |
| Dec 31, 2016 | 2.27 | 1.91 |
| Dec 31, 2015 | 1.03 | 1.90 |
| Dec 31, 2014 | 1.37 | 2.19 |
| Dec 31, 2013 | 1.35 | 2.17 |
| Dec 31, 2012 | 1.43 | 2.04 |
| Dec 31, 2011 | 1.40 | 2.30 |
| Dec 31, 2010 | 2.19 | 2.14 |
| Dec 31, 2009 | 1.68 | 1.95 |
| Dec 31, 2008 | 3.03 | 1.66 |
| Dec 31, 2007 | 2.64 | 1.74 |
| Dec 31, 2006 | 1.83 | 1.65 |
| Dec 31, 2005 | 5.54 | 1.82 |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 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), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Allergan PLC, current ratio, long-term trends, comparison to industry (health care)
| Allergan PLC | Health Care | |
|---|---|---|
| Dec 31, 2019 | 1.01 | 1.40 |
| Dec 31, 2018 | 1.13 | 1.45 |
| Dec 31, 2017 | 1.16 | 1.49 |
| Dec 31, 2016 | 2.27 | 1.67 |
| Dec 31, 2015 | 1.03 | 1.66 |
| Dec 31, 2014 | 1.37 | 1.87 |
| Dec 31, 2013 | 1.35 | 1.93 |
| Dec 31, 2012 | 1.43 | 1.81 |
| Dec 31, 2011 | 1.40 | 1.92 |
| Dec 31, 2010 | 2.19 | 1.80 |
| Dec 31, 2009 | 1.68 | 1.75 |
| Dec 31, 2008 | 3.03 | 1.42 |
| Dec 31, 2007 | 2.64 | 1.51 |
| Dec 31, 2006 | 1.83 | 1.39 |
| Dec 31, 2005 | 5.54 | 1.64 |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 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), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).