Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Allergan PLC (NYSE:AGN)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Beginner level

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Allergan PLC, decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Dec 31, 2019 -9.06% = -5.57% × 1.63
Dec 31, 2018 -7.83% = -5.01% × 1.56
Dec 31, 2017 -5.59% = -3.49% × 1.60
Dec 31, 2016 19.65% = 11.61% × 1.69
Dec 31, 2015 5.11% = 2.88% × 1.77

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

Three-Component Disaggregation of ROE

Allergan PLC, decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2019 -9.06% = -32.76% × 0.17 × 1.63
Dec 31, 2018 -7.83% = -32.28% × 0.16 × 1.56
Dec 31, 2017 -5.59% = -25.88% × 0.13 × 1.60
Dec 31, 2016 19.65% = 102.76% × 0.11 × 1.69
Dec 31, 2015 5.11% = 25.98% × 0.11 × 1.77

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

Five-Component Disaggregation of ROE

Allergan PLC, decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2019 -9.06% = — × — × -26.99% × 0.17 × 1.63
Dec 31, 2018 -7.83% = — × — × -37.73% × 0.16 × 1.56
Dec 31, 2017 -5.59% = — × — × -60.85% × 0.13 × 1.60
Dec 31, 2016 19.65% = 1.15 × 0.91 × 98.64% × 0.11 × 1.69
Dec 31, 2015 5.11% = 1.66 × 0.66 × 23.53% × 0.11 × 1.77

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

Two-Component Disaggregation of ROA

Allergan PLC, decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2019 -5.57% = -32.76% × 0.17
Dec 31, 2018 -5.01% = -32.28% × 0.16
Dec 31, 2017 -3.49% = -25.88% × 0.13
Dec 31, 2016 11.61% = 102.76% × 0.11
Dec 31, 2015 2.88% = 25.98% × 0.11

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

Four-Component Disaggregation of ROA

Allergan PLC, decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2019 -5.57% = — × — × -26.99% × 0.17
Dec 31, 2018 -5.01% = — × — × -37.73% × 0.16
Dec 31, 2017 -3.49% = — × — × -60.85% × 0.13
Dec 31, 2016 11.61% = 1.15 × 0.91 × 98.64% × 0.11
Dec 31, 2015 2.88% = 1.66 × 0.66 × 23.53% × 0.11

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

Disaggregation of Net Profit Margin

Allergan PLC, decomposition of net profit margin ratio

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2019 -32.76% = — × — × -26.99%
Dec 31, 2018 -32.28% = — × — × -37.73%
Dec 31, 2017 -25.88% = — × — × -60.85%
Dec 31, 2016 102.76% = 1.15 × 0.91 × 98.64%
Dec 31, 2015 25.98% = 1.66 × 0.66 × 23.53%

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).