Allergan PLC (NYSE:AGN)

Total Asset Turnover

The total asset turnover ratios, both reported and adjusted, exhibited a gradual increase over the five-year period. Starting from 0.11 in 2015 and 2016, the figures rose to 0.13 in 2017, followed by further increases to 0.16 in 2018 and 0.17 in 2019. This trend suggests a steady improvement in asset utilization efficiency.

Current Ratio

Both reported and adjusted current ratios peaked in 2016, reaching approximately 2.27 and 2.3 respectively, indicating strong short-term liquidity during that year. Subsequent years showed a decline, with the current ratio decreasing to around 1.16-1.18 in 2017, then further declining to nearly 1.01-1.02 by 2019. This downward trend reflects a reduction in liquidity over time.

Debt to Equity Ratio

The debt to equity ratios demonstrated a declining pattern from 2015 through 2018. Reported debt to equity decreased from 0.56 in 2015 to 0.37 in 2018, with a slight uptick to 0.39 in 2019. Adjusted ratios followed a similar pattern but maintained slightly lower values throughout. This decrease suggests a gradual deleveraging until 2018, with a minor reversal in the last year observed.

Debt to Capital Ratio

Both reported and adjusted debt to capital ratios steadily decreased from approximately 0.36 and 0.34 in 2015 to roughly 0.27 and 0.26 in 2018, with minor increases to 0.28 and 0.27 in 2019, respectively. This trend is consistent with the debt to equity ratios and indicates a modest reduction in reliance on debt financing during the period.

Financial Leverage

Financial leverage ratios declined from 2015 to 2018, with reported leverage falling from 1.77 to 1.56 and adjusted leverage from 1.6 to 1.45. However, in 2019, both measures increased slightly to 1.63 (reported) and 1.52 (adjusted). This pattern aligns with earlier debt trends, showing reduced leverage followed by a modest rise in the final year.

Net Profit Margin

The reported net profit margin displayed significant volatility. Initially positive at approximately 26% in 2015, it spiked dramatically to over 100% in 2016. Thereafter, it experienced a sudden and sustained decline into negative territory, falling to about -26% in 2017 and further deteriorating to approximately -33% by 2019. The adjusted net profit margin remained negative throughout the period, worsening notably in 2017 at nearly -53%, then improving slightly but remaining severely negative through 2019. These sharp declines indicate substantial profitability challenges after 2016.

Return on Equity (ROE)

Reported ROE rose from a low positive level of 5.11% in 2015 to 19.65% in 2016, followed by a reversal to negative values from 2017 onwards, declining to approximately -9% by 2019. Adjusted ROE was negative throughout the period, starting near -5.4% in 2015 and decreasing further to almost -10% by 2019. This trend reflects significant erosion in shareholder returns in the latter years.

Return on Assets (ROA)

Reported ROA followed a similar pattern to ROE, increasing from 2.88% in 2015 to 11.61% in 2016, before turning negative and falling to about -5.6% by 2019. Adjusted ROA was negative throughout, ranging from approximately -3.4% in 2015 to around -6.5% in 2019, suggesting ongoing operational challenges affecting asset profitability.

Net Revenues

Net revenues exhibited fluctuations over the five-year period. Beginning at approximately 15.07 billion US dollars in 2015, revenues experienced a slight decline in 2016 to around 14.57 billion. Subsequently, a recovery occurred in 2017, with revenues increasing to about 15.94 billion. Slight decreases followed in 2018 before rising again in 2019, ultimately reaching approximately 16.09 billion. Overall, net revenues demonstrated a general upward trend despite minor variances.

Total Assets

Total assets showed a consistent downward trajectory throughout the timeframe. From a high of roughly 135.84 billion US dollars at the end of 2015, assets steadily decreased each year, reaching about 94.70 billion by the end of 2019. This decline indicates significant asset reduction or divestiture activities over the period.

Reported Total Asset Turnover

The reported total asset turnover ratio, which measures efficiency in using assets to generate revenues, improved consistently. Starting from a low ratio of 0.11 in 2015 and 2016, it increased to 0.13 in 2017 and then had more substantial improvements to 0.16 in 2018 and 0.17 in 2019. This trend suggests enhanced effectiveness in asset utilization despite the decreasing asset base.

Adjusted Net Revenues and Adjusted Total Assets

Adjusted net revenues closely mirrored reported net revenues, with similar values and trends during the period. Adjusted total assets also followed the pattern of reported total assets, showing a decreasing pattern from about 136.03 billion in 2015 to approximately 94.23 billion in 2019. The adjusted total asset turnover ratio correspondingly improved from 0.11 to 0.17, reinforcing the interpretation of improved asset efficiency.

Summary Insights

Overall, the data reveals a strategic reduction in total assets concurrent with stable to slightly increasing revenue levels. This dynamic has resulted in marked improvements in asset turnover ratios, indicating better asset management and operational efficiency. Despite a shrinking asset base, the company maintained and marginally grew its revenue, underscoring a positive efficiency development over the five-year span.

Current Assets

The current assets show considerable volatility over the analyzed period. Beginning at approximately $8.6 billion in 2015, there is a notable spike in 2016 reaching nearly $17.9 billion. Subsequently, current assets declined sharply in 2017 to around $11.4 billion and further decreased to about $6.5 billion in 2018. In 2019, current assets increased again to approximately $11.1 billion, indicating fluctuating liquidity positions across the years.

Current Liabilities

Current liabilities exhibit a less volatile, yet variable pattern. Starting near $8.3 billion in 2015, liabilities decreased slightly to $7.9 billion in 2016, before increasing significantly to around $9.8 billion in 2017. A reduction follows in 2018 to $5.7 billion, and then a sharp increase in 2019 to $11.1 billion, reflecting changes in short-term obligations that align somewhat with changes in current assets.

Reported Current Ratio

The reported current ratio demonstrates a fluctuating but generally declining trend. It improved markedly from 1.03 in 2015 to a strong 2.27 in 2016, indicating a high level of liquidity at that point. However, from 2017 onward, the ratio decreased steadily to 1.16 in 2017, 1.13 in 2018, and finally dropped close to parity at 1.01 in 2019. This trend signals a decrease in the company's short-term liquidity buffer over time, approaching the minimal level of one.

Adjusted Current Assets

Adjusted current assets follow a very similar pattern to reported current assets, starting slightly higher at $8.7 billion in 2015 and peaking in 2016 at approximately $17.9 billion. Following years show declines to $11.5 billion in 2017 and $6.6 billion in 2018. The 2019 value increases again to approximately $11.2 billion. This consistency suggests the adjustments made have a limited impact on the overall trend in asset liquidity.

Adjusted Current Liabilities

Adjusted current liabilities also mirror the pattern of reported current liabilities with minor deviations. From about $8.2 billion in 2015, there is a dip to $7.8 billion in 2016, a rise to $9.7 billion in 2017, a drop to $5.7 billion in 2018, and a sharp increase to $11.1 billion in 2019. These trends confirm significant fluctuations in short-term financial obligations.

Adjusted Current Ratio

The adjusted current ratio closely matches the reported current ratio dynamics. It starts slightly above reported levels at 1.06 in 2015, peaks at 2.3 in 2016, then declines steadily through 2017 and 2018 before nearing 1.0 at 1.02 in 2019. This trend corroborates a diminishing liquidity cushion when liabilities are compared to liquid assets, even after adjustments.

The financial data reveals a consistent downward trend in total debt over the five-year period from 2015 to 2019, with values decreasing from approximately $42.7 billion to $22.6 billion. This decline indicates the company's ongoing efforts to reduce its leverage. Shareholders’ equity, on the other hand, shows a gradual decrease, falling from around $76.6 billion in 2015 to $58.2 billion in 2019, suggesting a decline in net assets or retained earnings during the period.

When examining reported debt to equity ratios, there is a noticeable improvement from 0.56 in 2015 to a low of 0.37 in 2018, followed by a slight increase to 0.39 in 2019. This trend aligns with the reduction in total debt and equity, reflecting the company's enhanced solvency position despite the decrease in equity.

Adjusted figures also display similar patterns. Adjusted total debt decreases steadily from approximately $42.9 billion in 2015 to $23.2 billion in 2019. Adjusted total equity increases initially from $84.8 billion in 2015 to $89.2 billion in 2016, then declines consistently to $62.2 billion by 2019. Correspondingly, the adjusted debt to equity ratio declines from 0.51 in 2015 to 0.35 in 2018, then marginally rises to 0.37 in 2019, mirroring the movements observed in the reported ratios.

Overall, the data demonstrates a trend of deleveraging with the company reducing both reported and adjusted debt levels substantially. The decline in shareholders’ equity and adjusted equity after 2016 could be indicative of operational challenges or capital distribution activities. The stability of the debt to equity ratios below 0.40 in the latter years indicates a moderate leverage position, suggesting maintained financial stability despite lower equity base.

Total Debt

The total debt shows a consistent downward trend from US$42.7 billion in 2015 to approximately US$22.6 billion in 2019. This decline implies a reduction of nearly 47% over the five-year period, indicating deleveraging or repayment activity by the company.

Total Capital

Total capital decreases steadily from about US$119.3 billion in 2015 to US$80.8 billion in 2019. The reduction of roughly 32% suggests a substantial contraction in the capital base, which could be influenced by asset sales, reduced equity, or other factors affecting the company’s capitalization.

Reported Debt to Capital Ratio

The reported debt to capital ratio decreases from 0.36 in 2015 to 0.27 in 2019, reaching a low of 0.27 in 2018 before a slight increase to 0.28 in 2019. This overall decline indicates improvement in the company's leverage position relative to its capital structure, becoming less reliant on debt financing.

Adjusted Total Debt

Adjusted total debt follows a similar decreasing pattern as reported total debt, starting at approximately US$42.9 billion in 2015 and declining to about US$23.2 billion in 2019. The trend reinforces the observation of consistent debt reduction efforts over the period.

Adjusted Total Capital

Adjusted total capital decreases from roughly US$127.7 billion in 2015 to US$85.4 billion in 2019, reflecting a contraction of about 33%. This mirrors the pattern seen in total capital and suggests a similar impact from adjustments made to capital components.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio declines from 0.34 in 2015 to 0.27 in 2019, with a low point of 0.26 in 2018 before rising slightly again. This trend is consistent with the reported ratio and indicates a gradual reduction in adjusted leverage, reflecting improved financial stability over time.

Total Assets

Total assets demonstrate a consistent downward trend over the five-year period, decreasing from approximately 135.8 billion US dollars at the end of 2015 to approximately 94.7 billion US dollars by the end of 2019. This represents a significant reduction in the asset base, indicating possible asset disposals, depreciation, or strategic divestments.

Shareholders’ Equity

Shareholders’ equity also follows a declining pattern, falling from about 76.6 billion US dollars in 2015 to approximately 58.2 billion US dollars in 2019. The decline in equity suggests either negative retained earnings, distributions in excess of earnings, or other factors reducing net worth over time.

Reported Financial Leverage

The reported financial leverage ratio decreases from 1.77 in 2015 to a low of 1.56 in 2018, indicating a reduction in reliance on debt relative to equity during this period. However, there is a slight uptick to 1.63 in 2019, which may imply a modest increase in gearing or borrowing relative to equity toward the end of the period.

Adjusted Total Assets

Adjusted total assets mirror the trend of reported total assets, declining steadily from around 136.0 billion US dollars in 2015 to approximately 94.2 billion US dollars in 2019. The adjusted figures are slightly above the reported ones, suggesting accounting adjustments that increase asset values marginally.

Adjusted Total Equity

Adjusted total equity increases from approximately 84.8 billion US dollars in 2015 to a peak of approximately 89.2 billion US dollars in 2016, after which it declines to around 62.2 billion US dollars by 2019. This initial increase followed by a pronounced decline could indicate restatements or revaluations in earlier years, with a subsequent decline consistent with the reported equity decreasing trend.

Adjusted Financial Leverage

Adjusted financial leverage decreases from 1.60 in 2015 to 1.45 in 2016, remains relatively stable around this level through 2018, and then increases modestly to 1.52 in 2019. This pattern aligns with the reported financial leverage but with generally lower ratio values, indicating a more conservative leverage assessment when adjustments are applied.

Net income (loss) attributable to shareholders

The net income exhibited significant volatility over the observed period. Starting from a positive figure of approximately 3.92 billion USD in 2015, it sharply increased to roughly 14.97 billion USD in 2016. However, subsequent years showed a reversal with losses recorded continuously: a negative 4.13 billion USD in 2017, worsening to negative 5.10 billion USD in 2018, and further marginal decline to about negative 5.27 billion USD in 2019. This trend indicates a shift from profitability to sustained net losses.

Net revenues

Net revenues remained relatively stable throughout the five years, with minor fluctuations. Revenues decreased slightly from 15.07 billion USD in 2015 to 14.57 billion USD in 2016, then increased again to a peak of 16.0 billion USD in 2019, showing moderate growth overall and demonstrating stability in sales or service income despite the fluctuations in net income.

Reported net profit margin

The reported net profit margin mirrored the pattern seen in net income. It started at a solid positive margin of approximately 26.0% in 2015 and surged dramatically to over 102.7% in 2016, suggesting an unusually high profitability relative to sales in that year. This was followed by a sharp decline into negative territory from 2017 onwards, with margins of -25.88%, -32.28%, and -32.76% in the subsequent years, indicating increasing losses relative to revenues.

Adjusted net income (loss)

The adjusted net income figures consistently reported losses throughout the period. Although the amounts vary, the losses started at 4.57 billion USD in 2015, slightly improved to 3.57 billion USD in 2016, then deteriorated significantly to 8.43 billion USD in 2017 before improving again somewhat to 6.95 billion USD in 2018 and 6.13 billion USD in 2019. This suggests ongoing underlying challenges affecting profitability when excluding one-time or non-recurring items.

Adjusted net revenues

Adjusted net revenues closely tracked the reported net revenues, showing small differences but similar stable trends. There was a slight dip from 15.06 billion USD in 2015 to 14.57 billion USD in 2016, followed by a growth trend up to approximately 16.08 billion USD in 2019. This stability implies consistent operational performance when adjusted for specific accounting treatments.

Adjusted net profit margin

The adjusted net profit margin remained negative each year, underscoring ongoing adjusted losses relative to sales. From -30.34% in 2015, there was a mild improvement to -24.49% in 2016, yet this was followed by deeper declines to -52.80% in 2017, improving marginally to -44.06% in 2018 and -38.09% in 2019. This reflects significant profitability pressures on core operations over time despite some recovery after the peak loss year.

Net Income (Loss) Attributable to Shareholders

The net income experienced significant volatility over the five-year period. Starting with a positive figure of approximately $3.9 billion in 2015, it increased sharply to nearly $15 billion in 2016. However, the company recorded consecutive losses from 2017 to 2019, with losses deepening from approximately -$4.1 billion in 2017 to around -$5.3 billion by 2019. This trend indicates a deteriorating profitability performance following a peak in 2016.

Shareholders’ Equity

Shareholders’ equity showed a declining trend throughout the period. From approximately $76.6 billion in 2015, it remained relatively stable in 2016 but then consistently decreased yearly, reaching about $58.2 billion by 2019. The decline suggests a reduction in the net assets available to shareholders over time, which may be related to accumulated losses or other equity-reducing activities.

Reported Return on Equity (ROE)

The reported ROE mirrored the fluctuations seen in net income. It was positive at 5.11% in 2015, peaked substantially at 19.65% in 2016, and then turned negative in subsequent years, with values declining to -5.59% in 2017, further to -7.83% in 2018, and reaching -9.06% in 2019. This indicates a shift from profitability to loss-making, reflective of the company's declining ability to generate returns on shareholders’ equity.

Adjusted Net Income (Loss)

Adjusted net income consistently showed losses across all years measured. Starting with a loss of approximately $4.6 billion in 2015, the negative figure slightly improved in 2016 to about -$3.6 billion but then worsened again in 2017 to nearly -$8.4 billion. Losses reduced slightly in 2018 and 2019 but remained significantly negative, indicating persistent adjusted operational challenges or one-time adjustments adversely affecting profitability.

Adjusted Total Equity

Adjusted total equity generally followed the same downward trajectory as reported shareholders’ equity but with some fluctuations. It increased from roughly $84.8 billion in 2015 to nearly $89.2 billion in 2016 before declining steadily to $62.2 billion by 2019. This suggests that adjustments made for equity calculation did not alter the overall trend of declining equity, potentially due to losses or other equity-reducing activities.”

Adjusted ROE

Adjusted ROE was negative throughout the examined period, indicating consistent underperformance when accounting for adjustments. It started at -5.39% in 2015, improved slightly to -4% in 2016, but then deteriorated significantly to -10.51% in 2017. The figure remained deeply negative at -9.96% and -9.85% in 2018 and 2019 respectively. This continuous negative adjusted ROE implies sustained challenges in generating shareholder value on an adjusted basis.

Net income (loss) attributable to shareholders

The net income shows a substantial peak in 2016 at approximately 14.97 billion US dollars, following a positive value of about 3.92 billion in 2015. However, in the subsequent years from 2017 to 2019, the company experienced consistent net losses, with the losses increasing progressively from about -4.13 billion in 2017 to -5.27 billion in 2019.

Total assets

Total assets exhibit a decreasing trend over the entire period considered. Starting from roughly 135.8 billion US dollars in 2015, total assets steadily declined each year, reaching approximately 94.7 billion US dollars by the end of 2019, indicating a reduction in the company's asset base.

Reported Return on Assets (ROA)

The reported ROA mirrors the net income trend, reaching a high of 11.61% in 2016. It then turns negative from 2017 onwards, decreasing from -3.49% in 2017 to -5.57% in 2019. This reflects declining profitability relative to the asset base throughout the latter part of the period.

Adjusted net income (loss)

The adjusted net income remains negative throughout all years, starting with a loss of approximately -4.57 billion US dollars in 2015. The loss slightly improves in 2016 to about -3.57 billion but worsens significantly in 2017 to approximately -8.43 billion. From 2018 to 2019, the losses reduce but remain substantial, with -6.95 billion in 2018 and -6.13 billion in 2019.

Adjusted total assets

Adjusted total assets follow a similar declining trajectory to reported total assets, decreasing from about 136.0 billion US dollars in 2015 to around 94.2 billion US dollars in 2019, indicating a consistent contraction in the asset base even after adjustments.

Adjusted Return on Assets (ROA)

Adjusted ROA remains negative throughout the period. It starts at -3.36% in 2015, improves marginally to -2.76% in 2016, then deteriorates sharply to -7.11% in 2017. Although slightly improving in 2018 and 2019 to -6.87% and -6.50% respectively, the adjusted ROA indicates sustained negative returns on the adjusted asset base.