Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Allergan PLC, liquidity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.01 | 1.13 | 1.16 | 2.27 | 1.03 | |
| Quick ratio | 0.82 | 0.83 | 0.95 | 2.00 | 0.42 | |
| Cash ratio | 0.53 | 0.33 | 0.65 | 1.68 | 0.13 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Allergan PLC current ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Allergan PLC quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Allergan PLC cash ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Current Ratio
Allergan PLC, current ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 11,126,700) | 6,475,400) | 11,376,700) | 17,857,900) | 8,615,400) | |
| Current liabilities | 11,070,700) | 5,727,900) | 9,848,100) | 7,874,700) | 8,328,300) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.01 | 1.13 | 1.16 | 2.27 | 1.03 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| AbbVie Inc. | 3.18 | — | — | — | — | |
| Amgen Inc. | 1.44 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 1.60 | — | — | — | — | |
| Danaher Corp. | 5.19 | — | — | — | — | |
| Eli Lilly & Co. | 1.16 | — | — | — | — | |
| Gilead Sciences Inc. | 3.10 | — | — | — | — | |
| Johnson & Johnson | 1.26 | — | — | — | — | |
| Merck & Co. Inc. | 1.24 | — | — | — | — | |
| Pfizer Inc. | 0.88 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 3.67 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 1.92 | — | — | — | — | |
| Zoetis Inc. | 2.63 | — | — | — | — | |
| Current Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.66 | — | — | — | — | |
| Current Ratio, Industry | ||||||
| Health Care | 1.34 | — | — | — | — | |
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).
1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 11,126,700 ÷ 11,070,700 = 1.01
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Allergan PLC current ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Quick Ratio
Allergan PLC, quick ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 2,503,300) | 880,400) | 1,817,200) | 1,724,000) | 1,096,000) | |
| Marketable securities | 3,411,600) | 1,026,900) | 4,632,100) | 11,501,500) | 9,300) | |
| Accounts receivable, net | 3,192,300) | 2,868,100) | 2,899,000) | 2,531,000) | 2,401,600) | |
| Total quick assets | 9,107,200) | 4,775,400) | 9,348,300) | 15,756,500) | 3,506,900) | |
| Current liabilities | 11,070,700) | 5,727,900) | 9,848,100) | 7,874,700) | 8,328,300) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.82 | 0.83 | 0.95 | 2.00 | 0.42 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| AbbVie Inc. | 2.91 | — | — | — | — | |
| Amgen Inc. | 1.01 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 1.26 | — | — | — | — | |
| Danaher Corp. | 4.68 | — | — | — | — | |
| Eli Lilly & Co. | 0.68 | — | — | — | — | |
| Gilead Sciences Inc. | 2.86 | — | — | — | — | |
| Johnson & Johnson | 0.94 | — | — | — | — | |
| Merck & Co. Inc. | 0.78 | — | — | — | — | |
| Pfizer Inc. | 0.50 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 2.81 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 1.19 | — | — | — | — | |
| Zoetis Inc. | 1.67 | — | — | — | — | |
| Quick Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.27 | — | — | — | — | |
| Quick Ratio, Industry | ||||||
| Health Care | 1.00 | — | — | — | — | |
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).
1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 9,107,200 ÷ 11,070,700 = 0.82
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Allergan PLC quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Cash Ratio
Allergan PLC, cash ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 2,503,300) | 880,400) | 1,817,200) | 1,724,000) | 1,096,000) | |
| Marketable securities | 3,411,600) | 1,026,900) | 4,632,100) | 11,501,500) | 9,300) | |
| Total cash assets | 5,914,900) | 1,907,300) | 6,449,300) | 13,225,500) | 1,105,300) | |
| Current liabilities | 11,070,700) | 5,727,900) | 9,848,100) | 7,874,700) | 8,328,300) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.53 | 0.33 | 0.65 | 1.68 | 0.13 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| AbbVie Inc. | 2.56 | — | — | — | — | |
| Amgen Inc. | 0.69 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 0.84 | — | — | — | — | |
| Danaher Corp. | 4.04 | — | — | — | — | |
| Eli Lilly & Co. | 0.21 | — | — | — | — | |
| Gilead Sciences Inc. | 2.50 | — | — | — | — | |
| Johnson & Johnson | 0.54 | — | — | — | — | |
| Merck & Co. Inc. | 0.47 | — | — | — | — | |
| Pfizer Inc. | 0.26 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 1.53 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.39 | — | — | — | — | |
| Zoetis Inc. | 1.07 | — | — | — | — | |
| Cash Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.88 | — | — | — | — | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.64 | — | — | — | — | |
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).
1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,914,900 ÷ 11,070,700 = 0.53
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Allergan PLC cash ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |