Debt to Equity
since 2005
Calculation
Allergan PLC, debt to equity, long-term trends, calculation
| 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 analysis of the financial data over the presented annual periods reveals significant fluctuations in the company’s capital structure and debt levels. The total debt and capital leases demonstrate a marked volatility, characterized by a general upward trend until 2015, followed by a notable decline in subsequent years. In contrast, shareholders’ equity has grown substantially over the entire period, with an especially sharp increase observed from 2012 onward, reaching a peak in 2015 and then gradually decreasing.
- Total Debt and Capital Leases
- The total debt increased from approximately $588 million in 2005 to its highest value near $42.7 billion in 2015. This rapid escalation from 2011 to 2015 suggests substantial leveraging activity during these years. After 2015, the debt level consistently decreased, falling to about $22.6 billion by 2019, indicating a deleveraging phase or repayment of obligations.
- Shareholders’ Equity
- Shareholders' equity showed consistent growth, rising from around $2.1 billion in 2005 to a peak of approximately $76.6 billion in 2015. This growth trend reflects an overall strengthening of the company’s net asset base. Following the peak, equity declined gradually to approximately $58.2 billion in 2019, signaling either distributions to shareholders, losses, or other equity-reducing activities.
- Debt to Equity Ratio
- This ratio fluctuated significantly, starting from a low of 0.28 in 2005 and rising to a peak of 1.68 in 2012, indicating a substantial increase in leverage relative to equity during this period. The ratio then trended downward to stabilize around 0.37-0.39 by 2018 and 2019. The sharp peak in 2012 corresponds with the large increase in total debt and a relatively smaller increase in equity, suggesting a period of intense borrowing or acquisition financing. The subsequent decline in the ratio aligns with debt reduction and equity growth phases.
Overall, the data presents a pattern of aggressive leverage expansion culminating around 2015, followed by a substantial adjustment in the capital structure. The fluctuations in the debt to equity ratio highlight periods of financial strategy shifts, with implications for risk profile and financial flexibility. The increase in equity alongside the elevation in debt up to 2015 signals capital infusion or retained earnings growth but later years reflect a movement towards strengthening the balance sheet by reducing debt and managing equity.
Comparison to Competitors
Allergan PLC, debt to equity, 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 | 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)
| 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)
| Allergan PLC | Health Care | |
|---|---|---|
| Dec 31, 2019 | 0.39 | 0.92 |
| Dec 31, 2018 | 0.37 | 0.86 |
| Dec 31, 2017 | 0.41 | 0.81 |
| Dec 31, 2016 | 0.43 | 0.76 |
| Dec 31, 2015 | 0.56 | 0.69 |
| Dec 31, 2014 | 0.55 | 0.52 |
| Dec 31, 2013 | 0.95 | 0.49 |
| Dec 31, 2012 | 1.68 | 0.51 |
| Dec 31, 2011 | 0.29 | 0.45 |
| Dec 31, 2010 | 0.31 | 0.42 |
| Dec 31, 2009 | 0.48 | 0.41 |
| Dec 31, 2008 | 0.42 | 0.41 |
| Dec 31, 2007 | 0.49 | 0.36 |
| Dec 31, 2006 | 0.73 | 0.33 |
| 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).