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
The liquidity profile of the entity underwent a significant transformation between 2005 and 2019, characterized by a general long-term decline in the current ratio despite a substantial increase in the absolute scale of both current assets and current liabilities.
- Current Asset Growth
- Current assets exhibited a strong upward trajectory, rising from 1,360,430 thousand US$ in 2005 to 11,126,700 thousand US$ by 2019. A notable peak occurred in 2016, where assets reached 17,857,900 thousand US$, before contracting and then partially recovering in the final years of the period.
- Current Liability Expansion
- Current liabilities grew more aggressively in proportional terms, starting at 245,670 thousand US$ in 2005 and escalating to 11,070,700 thousand US$ by 2019. The most rapid increase occurred between 2013 and 2019, during which liabilities grew from 3,294,900 thousand US$ to over 11 billion US$, reflecting a significant increase in short-term obligations.
- Current Ratio Trends
- The current ratio began at an exceptionally high level of 5.54 in 2005, indicating an overabundance of short-term liquidity. This figure declined sharply to 1.83 in 2006 and continued to fluctuate before entering a period of relative stability between 1.35 and 1.43 from 2011 to 2014. A critical low was reached in 2015 at 1.03, where current assets and liabilities were nearly equal.
- Liquidity Anomalies and Final Position
- A sharp outlier is observed in 2016, where the current ratio spiked to 2.27, coinciding with the peak in current assets. However, this improvement was temporary, as the ratio declined again to 1.16 in 2017 and finished at 1.01 in 2019. This concluding value indicates a tight liquidity position, where short-term assets only marginally cover short-term obligations.
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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 | 1.48 |
| Dec 31, 2018 | 1.13 | 1.52 |
| Dec 31, 2017 | 1.16 | 1.55 |
| Dec 31, 2016 | 2.27 | 1.73 |
| Dec 31, 2015 | 1.03 | 1.70 |
| Dec 31, 2014 | 1.37 | 1.92 |
| Dec 31, 2013 | 1.35 | 1.96 |
| Dec 31, 2012 | 1.43 | 1.84 |
| Dec 31, 2011 | 1.40 | 1.94 |
| Dec 31, 2010 | 2.19 | 1.81 |
| Dec 31, 2009 | 1.68 | 1.78 |
| Dec 31, 2008 | 3.03 | 1.44 |
| Dec 31, 2007 | 2.64 | 1.53 |
| Dec 31, 2006 | 1.83 | 1.39 |
| Dec 31, 2005 | 5.54 | 1.63 |
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).