Operating Profit Margin
since 2005
Calculation
Allergan PLC, operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Net revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | -27.63% | = | 100 | × | (4,445,300) | ÷ | 16,088,900) |
| Dec 31, 2018 | -39.57% | = | 100 | × | (6,247,600) | ÷ | 15,787,400) |
| Dec 31, 2017 | -37.15% | = | 100 | × | (5,921,200) | ÷ | 15,940,700) |
| Dec 31, 2016 | -12.53% | = | 100 | × | (1,825,500) | ÷ | 14,570,600) |
| Dec 31, 2015 | -20.00% | = | 100 | × | (3,014,500) | ÷ | 15,071,000) |
| Dec 31, 2014 | -9.71% | = | 100 | × | (1,267,700) | ÷ | 13,062,300) |
| Dec 31, 2013 | -4.88% | = | 100 | × | (423,200) | ÷ | 8,677,600) |
| Dec 31, 2012 | 5.42% | = | 100 | × | 320,800) | ÷ | 5,914,900) |
| Dec 31, 2011 | 11.70% | = | 100 | × | 536,200) | ÷ | 4,584,400) |
| Dec 31, 2010 | 8.56% | = | 100 | × | 305,400) | ÷ | 3,566,900) |
| Dec 31, 2009 | 13.75% | = | 100 | × | 383,900) | ÷ | 2,793,000) |
| Dec 31, 2008 | 14.12% | = | 100 | × | 358,128) | ÷ | 2,535,501) |
| Dec 31, 2007 | 10.24% | = | 100 | × | 255,660) | ÷ | 2,496,651) |
| Dec 31, 2006 | -21.33% | = | 100 | × | (422,096) | ÷ | 1,979,244) |
| Dec 31, 2005 | 13.27% | = | 100 | × | 218,512) | ÷ | 1,646,203) |
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 stark divergence between revenue growth and operating profitability. While net revenues expanded consistently and aggressively, increasing from approximately 1.65 billion USD in 2005 to over 16.09 billion USD by 2019, the operating profit margin transitioned from a generally positive state to a sustained period of significant losses.
- Revenue Expansion and Operational Scale
- A consistent upward trend in net revenues is observed throughout the entire period. A particularly sharp acceleration occurred between 2012 and 2014, where revenues more than doubled from 5.91 billion USD to 13.06 billion USD. This growth suggests a significant expansion in market share or the acquisition of new business lines.
- Initial Profitability Phase (2005–2012)
- During the first eight years of the analysis, the company generally maintained positive operating margins. Aside from a sharp, isolated dip to -21.33% in 2006, the operating profit margin typically fluctuated between 5.42% and 14.12%. This period reflects a capacity to generate operating income relative to the scale of revenues at the time.
- Operational Margin Contraction (2013–2019)
- Starting in 2013, a regime shift is evident as operating income entered a period of sustained deficit. The operating profit margin turned negative in 2013 (-4.88%) and deteriorated rapidly over the following years. The decline peaked in 2018, with the margin reaching its lowest point at -39.57%, coinciding with an operating loss of 6.25 billion USD.
- Analysis of Operating Loss Trends
- The latter part of the period shows that the increase in net revenues did not translate into operational efficiency. Instead, the scale of operating losses expanded in tandem with revenue growth until 2018. While a partial recovery in the operating margin is observed in 2019, improving to -27.63%, the company continued to operate with a substantial negative margin despite achieving its highest revenue levels in the provided sequence.
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Comparison to Competitors
Allergan PLC, operating profit margin, long-term trends, comparison to competitors
| Allergan PLC | AbbVie Inc. | Amgen Inc. | Danaher Corp. | Gilead Sciences Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | -27.63% | 39.03% | 43.57% | 18.25% | 19.38% | 28.10% | 17.99% | 28.77% |
| Dec 31, 2018 | -39.57% | 19.49% | 45.55% | 17.11% | 37.83% | 37.77% | 15.53% | 20.84% |
| Dec 31, 2017 | -37.15% | 33.99% | 45.76% | 16.48% | 55.04% | 35.41% | 14.19% | 4.95% |
| Dec 31, 2016 | -12.53% | 36.60% | 44.74% | 16.29% | 58.87% | 27.38% | 13.40% | 0.58% |
| Dec 31, 2015 | -20.00% | 32.97% | 40.44% | 16.87% | 69.03% | 30.51% | 13.77% | -45.23% |
| Dec 31, 2014 | -9.71% | 17.09% | 32.03% | 17.23% | 62.37% | 29.74% | 14.82% | -119.30% |
| Dec 31, 2013 | -4.88% | 30.14% | 32.25% | 17.13% | 41.87% | 36.11% | 12.30% | -74.54% |
| Dec 31, 2012 | 5.42% | 31.65% | 33.52% | 17.33% | 42.67% | 33.20% | 11.85% | 0.15% |
| Dec 31, 2011 | 11.70% | — | 28.19% | 16.27% | 46.77% | -46.02% | 10.62% | 8.07% |
| Dec 31, 2010 | 8.56% | — | 37.82% | 16.41% | 53.62% | -21.23% | 11.72% | -485.51% |
| Dec 31, 2009 | 13.75% | — | 38.37% | 13.79% | 54.55% | -19.54% | 10.38% | -602.63% |
| Dec 31, 2008 | 14.12% | — | 35.50% | 14.72% | 52.68% | -37.67% | 11.71% | -263.65% |
| Dec 31, 2007 | 10.24% | — | 27.81% | 15.79% | 57.98% | -91.55% | 10.00% | -210.94% |
| Dec 31, 2006 | -21.33% | — | 27.71% | 15.82% | -29.32% | -169.68% | 6.38% | -105.86% |
| Dec 31, 2005 | 13.27% | — | 40.33% | 15.84% | 61.41% | -187.97% | 10.01% | -93.15% |
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).