Stock Analysis on Net
Stock Analysis on Net

Allergan PLC (NYSE:AGN)

This company has been moved to the archive! The financial data has not been updated since May 7, 2020.

Debt to Equity
since 2005

Microsoft Excel

Calculation

Allergan PLC, debt to equity, long-term trends, calculation

Microsoft Excel
Debt to equity = Total debt and capital leases1 ÷ Shareholders’ equity1
Dec 31, 2019 0.39 = 22,649,000 ÷ 58,173,600
Dec 31, 2018 0.37 = 23,797,700 ÷ 65,114,100
Dec 31, 2017 0.41 = 30,075,300 ÷ 73,821,100
Dec 31, 2016 0.43 = 32,768,700 ÷ 76,192,700
Dec 31, 2015 0.56 = 42,726,200 ÷ 76,591,400
Dec 31, 2014 0.55 = 15,543,700 ÷ 28,331,100
Dec 31, 2013 0.95 = 9,052,000 ÷ 9,532,100
Dec 31, 2012 1.68 = 6,433,300 ÷ 3,833,800
Dec 31, 2011 0.29 = 1,033,000 ÷ 3,563,600
Dec 31, 2010 0.31 = 1,016,100 ÷ 3,281,700
Dec 31, 2009 0.48 = 1,457,800 ÷ 3,023,100
Dec 31, 2008 0.42 = 877,893 ÷ 2,108,585
Dec 31, 2007 0.49 = 905,649 ÷ 1,849,465
Dec 31, 2006 0.73 = 1,231,204 ÷ 1,680,388
Dec 31, 2005 0.28 = 587,935 ÷ 2,104,241

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 financial trajectory from 2005 to 2019 is characterized by a period of stability followed by a massive expansion of the balance sheet, culminating in a strategic deleveraging phase. While both total debt and shareholders' equity experienced exponential growth between 2012 and 2015, the debt-to-equity ratio suggests a managed approach to leverage over the long term.

Debt Accumulation and Reduction
Total debt remained relatively low and stable between 2005 and 2011, fluctuating between approximately 587 million and 1.46 billion US dollars. A significant escalation began in 2012, with debt rising to 6.43 billion US dollars, eventually peaking at 42.73 billion US dollars in 2015. Following this peak, a consistent downward trend is observed, with total debt reducing to 22.65 billion US dollars by 2019.
Shareholders' Equity Growth
Equity showed a steady increase from 2.10 billion US dollars in 2005 to 3.56 billion US dollars in 2011. A period of rapid capital expansion occurred between 2013 and 2015, during which equity surged from 9.53 billion US dollars to a peak of 76.59 billion US dollars. From 2016 onward, equity experienced a gradual decline, settling at 58.17 billion US dollars by the end of 2019.
Debt-to-Equity Ratio Volatility
The debt-to-equity ratio remained conservative for much of the early period, typically staying below 0.50. A notable spike occurred in 2012, where the ratio reached its highest point of 1.68, indicating a period of high leverage. However, this was followed by a sharp correction; by 2014, the ratio returned to 0.55 and continued to trend downward, reaching 0.37 by 2018. This indicates that the growth in equity effectively offset the increase in debt, returning the organization to a lower-leverage financial position.

The overall pattern indicates a high-growth phase centered around 2015, characterized by a substantial increase in both liabilities and equity. The subsequent reduction in total debt and the stabilization of the debt-to-equity ratio suggest a transition toward financial consolidation and a more conservative capital structure in the final years of the analyzed period.

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Comparison to Competitors

Allergan PLC, debt to equity, long-term trends, comparison to competitors

Microsoft Excel
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 0.39 — 3.09 0.91 0.72 5.88 1.09 0.47 1.02 0.83 0.06 0.60 0.09
Dec 31, 2018 0.37 — 2.71 0.52 0.35 1.30 1.28 0.51 0.94 0.66 0.08 0.69 0.13
Dec 31, 2017 0.41 7.33 1.40 0.68 0.40 1.18 1.64 0.57 0.71 0.60 0.11 0.83 0.29
Dec 31, 2016 0.43 7.95 1.16 0.41 0.53 0.74 1.39 0.39 0.62 0.71 0.11 0.77 0.71
Dec 31, 2015 0.56 8.03 1.12 0.47 0.54 0.55 1.20 0.28 0.59 0.60 0.10 0.59 0.86
Dec 31, 2014 0.55 8.62 1.19 0.53 0.15 0.52 0.80 0.27 0.44 0.51 0.18 0.71 0.75
Dec 31, 2013 0.95 3.28 1.45 0.55 0.16 0.30 0.58 0.25 0.50 0.48 0.26 0.62 0.36
Dec 31, 2012 1.68 4.66 1.39 0.54 0.28 0.37 0.88 0.25 0.39 0.46 0.37 0.46 0.68
Dec 31, 2011 0.29 — 1.13 0.34 0.31 0.52 1.13 0.34 0.32 0.47 0.90 0.47 0.58
Dec 31, 2010 0.31 — 0.56 0.35 0.21 0.56 0.59 0.30 0.33 0.50 0.31 0.14 1.07
Dec 31, 2009 0.48 — 0.47 0.43 0.25 0.70 0.18 0.29 0.30 0.54 0.27 0.14 0.14
Dec 31, 2008 0.42 — 0.50 0.55 0.27 1.55 0.31 0.28 0.33 0.30 0.00 0.14 1.20
Dec 31, 2007 0.49 — 0.63 0.59 0.41 0.37 0.38 0.22 0.32 0.20 0.43 0.15 0.07
Dec 31, 2006 0.73 — 0.48 0.74 0.37 0.34 0.77 0.17 0.39 0.11 0.92 0.19 0.24
Dec 31, 2005 0.28 — 0.19 0.77 0.21 0.60 0.10 0.07 0.45 0.27 1.75 0.21 0.75

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, debt to equity, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel
Allergan PLC Pharmaceuticals, Biotechnology & Life Sciences
Dec 31, 2019 0.39 1.09
Dec 31, 2018 0.37 0.93
Dec 31, 2017 0.41 0.87
Dec 31, 2016 0.43 0.79
Dec 31, 2015 0.56 0.68
Dec 31, 2014 0.55 0.55
Dec 31, 2013 0.95 0.52
Dec 31, 2012 1.68 0.51
Dec 31, 2011 0.29 0.46
Dec 31, 2010 0.31 0.40
Dec 31, 2009 0.48 0.39
Dec 31, 2008 0.42 0.37
Dec 31, 2007 0.49 0.30
Dec 31, 2006 0.73 0.25
Dec 31, 2005 0.28 0.29

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, debt to equity, long-term trends, comparison to industry (health care)

Microsoft Excel
Allergan PLC Health Care
Dec 31, 2019 0.39 0.90
Dec 31, 2018 0.37 0.80
Dec 31, 2017 0.41 0.82
Dec 31, 2016 0.43 0.77
Dec 31, 2015 0.56 0.69
Dec 31, 2014 0.55 0.54
Dec 31, 2013 0.95 0.50
Dec 31, 2012 1.68 0.54
Dec 31, 2011 0.29 0.47
Dec 31, 2010 0.31 0.43
Dec 31, 2009 0.48 0.42
Dec 31, 2008 0.42 0.42
Dec 31, 2007 0.49 0.36
Dec 31, 2006 0.73 0.32
Dec 31, 2005 0.28 0.30

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).