Return on Equity (ROE)
since 2005
Calculation
Allergan PLC, ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to shareholders1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | -9.06% | = | 100 | × | (5,271,000) | ÷ | 58,173,600) |
| Dec 31, 2018 | -7.83% | = | 100 | × | (5,096,400) | ÷ | 65,114,100) |
| Dec 31, 2017 | -5.59% | = | 100 | × | (4,125,500) | ÷ | 73,821,100) |
| Dec 31, 2016 | 19.65% | = | 100 | × | 14,973,400) | ÷ | 76,192,700) |
| Dec 31, 2015 | 5.11% | = | 100 | × | 3,915,200) | ÷ | 76,591,400) |
| Dec 31, 2014 | -5.76% | = | 100 | × | (1,630,500) | ÷ | 28,331,100) |
| Dec 31, 2013 | -7.87% | = | 100 | × | (750,400) | ÷ | 9,532,100) |
| Dec 31, 2012 | 2.54% | = | 100 | × | 97,300) | ÷ | 3,833,800) |
| Dec 31, 2011 | 7.32% | = | 100 | × | 260,900) | ÷ | 3,563,600) |
| Dec 31, 2010 | 5.62% | = | 100 | × | 184,400) | ÷ | 3,281,700) |
| Dec 31, 2009 | 7.34% | = | 100 | × | 222,000) | ÷ | 3,023,100) |
| Dec 31, 2008 | 11.31% | = | 100 | × | 238,379) | ÷ | 2,108,585) |
| Dec 31, 2007 | 7.63% | = | 100 | × | 141,030) | ÷ | 1,849,465) |
| Dec 31, 2006 | -26.48% | = | 100 | × | (445,005) | ÷ | 1,680,388) |
| Dec 31, 2005 | 6.57% | = | 100 | × | 138,233) | ÷ | 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 performance from 2005 to 2019 is characterized by extreme volatility in net income and return on equity (ROE), reflecting a pattern of unstable profitability and significant shifts in the capital base.
- Initial Performance Phase (2005–2012)
- During this period, ROE remained predominantly positive but low, fluctuating between a high of 11.31% in 2008 and a low of 2.54% in 2012. A notable exception occurred in 2006, where a net loss of 445 million US dollars resulted in a sharp ROE contraction to -26.48%. This phase indicates a period of inconsistent but generally sustainable returns on shareholder capital.
- Equity Expansion and Volatility (2013–2016)
- A dramatic transformation in the balance sheet occurred between 2013 and 2015, with shareholders' equity increasing from 9.5 billion US dollars to 76.6 billion US dollars. Despite this expansion, the company experienced significant net losses in 2013 and 2014, leading to negative ROE values of -7.87% and -5.76%, respectively. This trend reversed sharply in 2016, which marked the period's peak performance with a net income of approximately 14.97 billion US dollars and a corresponding ROE of 19.65%.
- Sustained Decline (2017–2019)
- The final three years of the observed period show a consistent downward trajectory. Net income transitioned into deep negative territory, with losses increasing from 4.1 billion US dollars in 2017 to 5.27 billion US dollars in 2019. Consequently, ROE deteriorated progressively from -5.59% to -9.06%. This decline in profitability was accompanied by a gradual erosion of shareholders' equity, which fell from 73.8 billion US dollars in 2017 to 58.2 billion US dollars by the end of 2019.
In summary, the data reveals a transition from moderate profitability to a state of persistent negative returns. The substantial growth in equity seen in the mid-2010s failed to produce a sustained positive ROE, ending the period with a negative trend in both net earnings and equity value.
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Comparison to Competitors
Allergan PLC, ROE, 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 | -9.06% | — | 81.07% | 6.66% | 9.94% | 319.09% | 23.91% | 25.42% | 37.99% | 25.77% | 19.08% | 12.45% | 19.34% |
| Dec 31, 2018 | -7.83% | — | 67.15% | 35.07% | 9.40% | 32.88% | 25.51% | 25.60% | 23.30% | 17.59% | 27.91% | 10.65% | 47.28% |
| Dec 31, 2017 | -5.59% | 104.16% | 7.84% | 8.58% | 9.45% | -1.76% | 22.64% | 2.16% | 6.97% | 29.47% | 19.51% | 8.76% | 12.99% |
| Dec 31, 2016 | 19.65% | 128.41% | 25.85% | 27.55% | 11.10% | 19.54% | 71.48% | 23.49% | 9.78% | 12.12% | 20.13% | 9.39% | -9.69% |
| Dec 31, 2015 | 5.11% | 130.39% | 24.71% | 10.97% | 14.17% | 16.53% | 97.70% | 21.66% | 9.94% | 10.75% | 17.40% | 9.25% | -59.19% |
| Dec 31, 2014 | -5.76% | 101.84% | 20.01% | 13.49% | 11.11% | 15.55% | 78.45% | 23.40% | 24.50% | 12.81% | 13.69% | 9.22% | -68.70% |
| Dec 31, 2013 | -7.87% | 91.90% | 23.00% | 16.91% | 12.04% | 26.57% | 27.05% | 18.68% | 8.85% | 28.83% | 21.74% | 7.55% | -32.81% |
| Dec 31, 2012 | 2.54% | 156.85% | 22.80% | 14.39% | 12.58% | 27.69% | 27.84% | 16.74% | 11.63% | 17.93% | 60.24% | 7.62% | -10.71% |
| Dec 31, 2011 | 7.32% | — | 19.35% | 23.25% | 12.85% | 32.11% | 41.60% | 16.94% | 11.50% | 12.18% | -45.65% | 8.84% | 3.76% |
| Dec 31, 2010 | 5.62% | — | 19.32% | 19.74% | 13.08% | 40.82% | 49.48% | 23.57% | 1.58% | 9.40% | -19.79% | 6.74% | -149.74% |
| Dec 31, 2009 | 7.34% | — | 20.32% | 71.49% | 9.90% | 45.45% | 41.40% | 24.25% | 21.85% | 9.59% | -17.10% | 5.51% | -58.57% |
| Dec 31, 2008 | 11.31% | — | 20.58% | 42.86% | 13.43% | -30.76% | 48.43% | 30.46% | 41.63% | 14.08% | -19.75% | 6.66% | -192.51% |
| Dec 31, 2007 | 7.63% | — | 17.72% | 20.50% | 15.08% | 21.61% | 46.69% | 24.41% | 18.01% | 12.53% | -22.94% | 5.25% | -144.23% |
| Dec 31, 2006 | -26.48% | — | 15.56% | 15.86% | 16.89% | 24.25% | -65.54% | 28.11% | 25.25% | 27.10% | -47.24% | 1.21% | -40.89% |
| Dec 31, 2005 | 6.57% | — | 17.96% | 26.77% | 17.67% | 18.34% | 26.88% | 27.49% | 25.85% | 12.32% | -83.72% | 7.99% | -85.05% |
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, ROE, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Allergan PLC | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2019 | -9.06% | 27.68% |
| Dec 31, 2018 | -7.83% | 26.29% |
| Dec 31, 2017 | -5.59% | 14.59% |
| Dec 31, 2016 | 19.65% | 22.19% |
| Dec 31, 2015 | 5.11% | 21.44% |
| Dec 31, 2014 | -5.76% | 20.91% |
| Dec 31, 2013 | -7.87% | 20.33% |
| Dec 31, 2012 | 2.54% | 18.27% |
| Dec 31, 2011 | 7.32% | 15.52% |
| Dec 31, 2010 | 5.62% | 13.99% |
| Dec 31, 2009 | 7.34% | 20.34% |
| Dec 31, 2008 | 11.31% | 21.31% |
| Dec 31, 2007 | 7.63% | 17.07% |
| Dec 31, 2006 | -26.48% | 21.86% |
| Dec 31, 2005 | 6.57% | 19.08% |
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, ROE, long-term trends, comparison to industry (health care)
| Allergan PLC | Health Care | |
|---|---|---|
| Dec 31, 2019 | -9.06% | 23.30% |
| Dec 31, 2018 | -7.83% | 21.27% |
| Dec 31, 2017 | -5.59% | 13.77% |
| Dec 31, 2016 | 19.65% | 18.53% |
| Dec 31, 2015 | 5.11% | 18.52% |
| Dec 31, 2014 | -5.76% | 19.17% |
| Dec 31, 2013 | -7.87% | 18.81% |
| Dec 31, 2012 | 2.54% | 18.20% |
| Dec 31, 2011 | 7.32% | 15.90% |
| Dec 31, 2010 | 5.62% | 14.85% |
| Dec 31, 2009 | 7.34% | 20.14% |
| Dec 31, 2008 | 11.31% | 20.29% |
| Dec 31, 2007 | 7.63% | 17.87% |
| Dec 31, 2006 | -26.48% | 20.49% |
| Dec 31, 2005 | 6.57% | 18.28% |
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).