Allergan PLC (NYSE:AGN)

The analyzed financial ratios reveal several notable trends and fluctuations across the examined periods.

Return on Assets (ROA)

ROA values commenced at relatively low or unreported levels before reaching a peak of 9.99% by the end of 2015. A further increase was observed in early 2017, with the ROA peaking at 11.61%. Following this peak, a pronounced decline transpired throughout 2017 and into 2019, reaching negative values as low as -9.8% by the end of 2019. Some recovery attempts were evident in the first quarter of 2020, with ROA improving slightly to -2.81%, yet remaining negative overall.

Financial Leverage

Financial leverage demonstrated a gradual decrease from 1.95 in early 2015 to 1.51 by the third quarter of 2018, indicating a slow reduction in the reliance on debt relative to equity. However, this ratio showed a modest increase toward the end of 2019, peaking at 1.63, before slightly dropping again to 1.52 by the first quarter of 2020. Overall, financial leverage remained relatively stable within a moderate range over the period.

Return on Equity (ROE)

ROE mirrored the trends observed in ROA but with amplified volatility. Starting at just above 5% in early 2016, ROE rose substantially to a maximum of 19.65% by the first quarter of 2017. Subsequently, a steep decline ensued, leading to negative ROE values that reached a low of -15.82% in the latter part of 2019. The first quarter of 2020 saw some improvement though ROE remained deeply negative at -4.28%, suggesting continued challenges in generating profitability for shareholders.

In summary, the data reveals a period of strong profitability culminating around early 2017, followed by significant deterioration in asset and equity returns accompanied by relatively stable financial leverage. The decline in profitability metrics suggests operational or market difficulties impacting the company’s efficiency and shareholder value during the latter periods, despite a modest reduction in financial leverage.

Net Profit Margin

The net profit margin displays notable volatility throughout the observed periods. Initially, starting from the first available data in March 2016, it increases from 25.98% to a peak of 107.27% by December 2016. This peak is followed by a decline, maintaining relatively high positive values until September 2017. Subsequently, the margin turns sharply negative from December 2017 through to the end of 2019, reaching its lowest point at -58.5% in December 2019. By March 2020, there is a partial recovery to -15.44%, but it remains in negative territory overall. This pattern suggests significant fluctuations in profitability, with a period of substantial gains followed by pronounced losses in the latter years.

Asset Turnover

Asset turnover ratios demonstrate a gradual and steady improvement across the entire period. The metric starts near 0.11 in March 2016 and increments consistently over the years, reaching 0.18 by March 2020. The positive trend indicates an increasing efficiency in utilizing assets to generate revenue, reflecting potentially more effective asset management or increased sales activity relative to asset base over time.

Financial Leverage

Financial leverage ratios show a mild downward trend initially, declining from 1.95 in March 2015 to approximately 1.51 by September 2018. After this phase, there is a slight recovery and stabilization around 1.6 until December 2019, with a small decrease to 1.52 by March 2020. Overall, the leverage remains relatively moderate and stable, indicating controlled use of debt or equity financing without extreme shifts during the periods evaluated.

Return on Equity (ROE)

The return on equity exhibits a pattern analogous to net profit margin, starting with positive values in 2016 and 2017, peaking at 19.65% in March 2017, before declining sharply into negative values from December 2017 onward. The lowest point is reached at -15.82% in December 2019, followed by a slight improvement to -4.28% by March 2020. This trajectory reflects a deterioration in the company’s ability to generate profits from shareholders’ equity in the later periods, consistent with the downturn observed in profitability metrics.

The financial data demonstrates varying trends across key financial ratios over the observed periods. The analysis reveals fluctuations in profitability, operational efficiency, leverage, and returns to equity holders.

Tax Burden

The tax burden ratio commences from the period ending March 31, 2016, showing values near or slightly above 1.0, peaking at 1.66 and declining to values close to 1.07-1.24 around the end of 2016 and early 2017. No data is available beyond early 2017, suggesting limited insight into tax expense impact in later periods.

Interest Burden

This ratio follows a consistent range between approximately 0.66 and 0.91 during the reported quarters from early 2016 through early 2017. The values indicate moderate interest expense levels relative to earnings before taxes but no further data beyond early 2017 limits longer-term interpretation.

EBIT Margin

The EBIT margin exhibits substantial volatility throughout the periods. Initially, it increases from 23.53% in March 2016 to an outstanding 109.87% by December 2016, suggesting an anomalous spike or a one-off event significantly impacting earnings before interest and taxes. Following this peak, a pronounced decline occurs, with margins becoming negative from December 2017 onward, reaching as low as -60.05% by March 2020. This shift indicates deteriorating operational profitability over the latter periods.

Asset Turnover

Asset turnover shows a steady upward trend, rising from 0.11 in March 2016 to 0.18 by March 2020. This consistent increase implies progressive improvement in efficiency in generating sales from assets, despite the challenges faced in profitability figures.

Financial Leverage

Financial leverage ratios generally decrease slightly from a high of 1.95 in March 2015 to approximately 1.5-1.6 in the subsequent periods, reflecting a mild reduction in the extent of debt financing relative to equity. Fluctuations remain modest, suggesting stable capital structure management without aggressive leverage changes.

Return on Equity (ROE)

ROE mirrors the pattern observed in EBIT margin, initially improving from 5.11% in March 2016 to 19.65% by March 2017, indicating stronger profitability and return generation for shareholders. However, following this peak, ROE sharply reverses to negative territory starting December 2017, declining to a low of -15.82% by December 2019. A slight recovery is observed in early 2020 but remains negative at -4.28%, signaling significant challenges in generating positive shareholder returns in recent periods.

In summary, the data indicates strong profitability and return performance around 2016-2017, followed by a marked deterioration in operational results and negative returns to equity in subsequent years. Meanwhile, asset efficiency steadily improved, and financial leverage remained relatively stable. The contrasting trends suggest operational difficulties weighing on margins and equity returns, despite effective utilization of assets and controlled leverage.

The analysis of the quarterly financial data reflects significant variability in the company's profitability and efficiency indicators over the examined periods.

Net Profit Margin

The net profit margin remained unreported in the earliest periods but began at a moderate level of 25.98% by March 2016. It showed an increasing trend through 2016 and into early 2017, peaking dramatically at 107.27% by December 2016. Following this peak, the margin declined sharply throughout 2017, moving into negative territory by December 2017 and continuing to deteriorate until the end of 2019. A slight recovery is observed in the last reported quarter, March 2020, where the negative margin lessened to -15.44%. This pattern indicates periods of high profitability followed by significant losses, suggesting volatility in the company's operational or market conditions.

Asset Turnover

Asset turnover data begins from March 2016 with a value of 0.11 ratio and reveals a steady, gradual increase across all subsequent quarters. By March 2020, the asset turnover ratio improved to 0.18, indicating enhanced efficiency in utilizing assets to generate revenue over time. This consistent upward trend suggests ongoing improvements or investments in asset management and sales productivity.

Return on Assets (ROA)

Return on assets follows a pattern somewhat consistent with net profit margin but with less extreme fluctuations. ROA started at 2.88% in March 2016 and increased to nearly 10% towards the end of 2016, showing improving asset profitability during that period. However, similar to net profit margin, ROA declined sharply into negative values from late 2017 through 2019, reaching lows near -9.8%. In early 2020, ROA showed signs of improvement, rising to -2.81%. This trajectory highlights a marked decrease in efficiency in generating returns from assets during the later periods, followed by partial recovery.

Overall, the data depicts a company experiencing strong profitability and asset utilization performance until late 2016 and early 2017, followed by a period of financial strain characterized by losses and reduced returns on assets. The improvement in asset turnover during declining profitability periods suggests operational efforts to enhance asset use, which may support recovery if profitability stabilizes. The recent partial upturn in both net profit margin and ROA towards early 2020 could indicate initial stages of financial stabilization or turnaround.

Tax Burden

The tax burden ratio data is partially available starting from March 31, 2016. From this point, the ratio fluctuated modestly around values close to 1.0 to 1.6, indicating some variability in the effective tax rate relative to pre-tax earnings. The ratio started at 1.66, declined slightly over the next few quarters, and stabilized around 1.15 to 1.24 by early 2017. Subsequent data are missing, preventing analysis beyond that period.

Interest Burden

Interest burden figures are present for the same period as tax burden, beginning March 31, 2016. The ratio remained relatively steady, fluctuating narrowly between 0.66 and 0.91 until the end of 2016 and into early 2017, which suggests stable interest expenses relative to earnings before interest and taxes during that time. No further data are available to indicate changes beyond early 2017.

EBIT Margin

EBIT margin demonstrated significant volatility. Initially, from March 31, 2016 to September 30, 2017, margins were relatively high, peaking at an unusually elevated 109.87% on December 31, 2016, followed by decreases to 71.48% by September 30, 2017. From December 31, 2017 onward, EBIT margin turned negative consistently, indicating operational losses or significant impairments. The negative margin deepened over the quarters, reaching as low as -60.05% by December 31, 2019. Despite a slight improvement at the end of the series (March 31, 2020), the margin remained negative at -20.94%.

Asset Turnover

The asset turnover ratio exhibited a gradual upward trend over the entire period. Beginning at 0.11 in March 31, 2016, the ratio steadily increased with minor fluctuations, reaching 0.18 by March 31, 2020. This progression indicates improving efficiency in using assets to generate sales, suggesting better asset management or increased sales relative to asset base over time.

Return on Assets (ROA)

The ROA mirrored the variability seen in EBIT margin but with less pronounced extremes. Initially positive, ROA rose from 2.88% in March 2016 to a peak of 11.61% on March 31, 2017, reflecting increased profitability. Subsequently, there was a sharp decline turning negative by December 31, 2017, consistent with the negative EBIT margins. ROA deteriorated progressively through 2019, with the lowest point near -9.8% in December 2019. Slight recovery occurred by March 2020, with ROA improving but still negative at -2.81%. This pattern indicates declining effectiveness in asset utilization to generate profits, culminating in losses in the later periods.

The financial data reveals notable fluctuations in several key profitability ratios over the analyzed periods.

Tax Burden Ratio

The tax burden ratio is only available from the first quarter of 2016 onward. Initially, it starts at 1.66 and then exhibits a gradual decrease through the end of 2016, reaching a low of 1.07 in December 2016. Following this, it slightly increases in early 2017, hovering near 1.2 by the third quarter of 2017. Afterward, data is missing for this ratio, so no conclusive trend can be drawn beyond 2017.

Interest Burden Ratio

Available for the same starting period as the tax burden, the interest burden ratio fluctuates moderately between 0.66 and 0.91 from March 2016 through September 2017. It begins at 0.66 and peaks at 0.91 twice (December 2016 and March 2017) before settling back to around 0.89 by the third quarter of 2017. No data is reported subsequent to September 2017.

EBIT Margin

The EBIT margin shows significant volatility and an overall deteriorating trend over the full period from early 2015 to the first quarter of 2020. Starting at approximately 23.53% in March 2016, it rises sharply to an extraordinary peak of 109.87% in December 2016, followed by a decline but remaining high at near 98.64% in March 2017. From mid-2017, the margin plunges into negative territory, reaching a low of -64.25% at the year's end. Although slightly improving in early 2018, it continues a downward trend, mostly remaining negative and bottoming around -60.05% by late 2019. There is a modest recovery noted in early 2020 to about -20.94% but still remains substantially negative compared to earlier years.

Net Profit Margin

The net profit margin parallels the EBIT margin's pattern, although its values are generally slightly higher. Beginning at 25.98% at the start of 2016, it follows a steep upward trajectory to a peak of 107.27% in December 2016 before declining sharply to -46.82% by the end of 2017. Partial recovery to 14.5% occurs in the first quarter of 2018, but thereafter, the margin enters a prolonged negative phase, dropping as low as -58.5% near the end of 2019. The margin improves somewhat in early 2020, reaching -15.44%, but still indicates significant profitability challenges.

Overall, the data underscores a period of strong profitability peaks around late 2016, followed by pronounced and sustained declines through 2017 to 2020. The short-term spikes in margins could be indicative of extraordinary items or one-time effects, while the persistent negative margins in later years suggest operational or market difficulties impacting profitability substantially.