Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Assets
- Cash Flow Statement
- Analysis of Profitability Ratios
- Common Stock Valuation Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
Allergan PLC, long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
The analysis of the quarterly financial ratios reveals several trends in the company's asset and equity utilization over the reported periods.
- Net Fixed Asset Turnover
- This ratio exhibits a generally stable pattern throughout the observed timeline from March 2015 to March 2020. The values fluctuate moderately within a range of approximately 8.35 to 9.93, indicating a consistent efficiency in generating sales from fixed assets. Notably, the ratio peaks around mid-2015 and again in early 2018, followed by a slight decline towards early 2020.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted ratio aligns closely with the standard net fixed asset turnover until late 2018. From early 2019 onward, it shows a marked decline from 8.83 down to around 6.66-6.72 by the end of the period. This downward trend suggests the impact of incorporating operating leases and right-of-use assets, reflecting changes in asset management or lease accounting standards that reduce turnover efficiency.
- Total Asset Turnover
- A positive upward trend is evident in total asset turnover, increasing steadily from about 0.09 at the end of 2015 to 0.18 by March 2020. This indicates improving efficiency in utilizing overall assets to generate revenue, showcasing enhanced operational performance or asset management.
- Equity Turnover
- Equity turnover demonstrates a consistent increase throughout the period, rising from approximately 0.15 in late 2015 to 0.28 by early 2020. This growth points to an improved ability to generate sales from shareholders’ equity, reflecting potentially higher return on equity or more efficient use of equity capital.
In summary, while the net fixed asset turnover ratio remains fairly stable with a slight decline after 2018, the inclusion of operating leases modifies this ratio downward significantly in recent periods. Both total asset turnover and equity turnover show solid, steady improvements, indicating enhanced overall efficiency in asset and equity usage to generate sales over time.
Net Fixed Asset Turnover
Allergan PLC, net fixed asset turnover calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q1 2020 Calculation
Net fixed asset turnover
= (Net revenuesQ1 2020
+ Net revenuesQ4 2019
+ Net revenuesQ3 2019
+ Net revenuesQ2 2019)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenues Trend
- Net revenues exhibited significant fluctuations over the analyzed periods. There was a sharp increase from March 31, 2015, to June 30, 2015, followed by a decrease by the end of 2015. In 2016, revenues showed a moderate increase during the middle quarters but remained below mid-2015 peaks. The years 2017 and 2018 presented relatively stable revenue figures with some minor quarter-to-quarter variation, staying generally within the 3.6 to 4.3 million range in thousands of US dollars. In 2019, revenues slightly increased in the middle quarters but showed a decline in the final quarter. The first quarter of 2020 saw a decrease again to 3.6 million, which represented a lower point relative to the preceding quarters of 2019.
- Property, Plant and Equipment, Net
- Net property, plant, and equipment values showed some volatility early in the timeline, with an initial decrease between March 31, 2015, and September 30, 2015. From this point onward, there was a gradual and steady increase in the asset base through the end of 2019, moving from approximately 1.6 million to nearly 1.9 million US dollars in thousands. Despite a slight dip in the last recorded quarter of March 31, 2020, net fixed assets remained near their highest levels recorded within the dataset, indicating ongoing investment or maintenance of fixed assets over time.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, available only from September 30, 2015, demonstrated a diminishing trend over the analyzed quarters. Beginning with a high of 9.58, the ratio gradually declined to 8.4 by March 31, 2020. This decline suggests that the company generated less revenue per unit of fixed asset investment over time, which could be indicative of either slowing sales relative to fixed assets or a strategic increase in asset base not yet yielding proportional revenue growth.
- Overall Insights
- Despite fluctuations in net revenues and steady increases in fixed assets, the declining asset turnover ratio points to reduced efficiency in utilizing fixed assets to generate revenue. The growth in property, plant, and equipment did not correspond proportionally with revenue increases, potentially signaling underutilization or expanding asset base ahead of revenue growth. The revenue volatility, notably the spike in mid-2015 followed by periodic decreases, may reflect external market conditions or internal operational adjustments affecting sales performance.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Allergan PLC, net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||||||
| Right of use asset, operating leases | ||||||||||||||||||||||||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q1 2020 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net revenuesQ1 2020
+ Net revenuesQ4 2019
+ Net revenuesQ3 2019
+ Net revenuesQ2 2019)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenues
- The net revenues exhibit significant volatility throughout the periods analyzed. Beginning with a high value in March 2015 (approximately 2.56 billion USD), there is a pronounced spike in June 2015 reaching around 5.76 billion USD, followed by a decline in the subsequent quarter and fluctuating levels thereafter. From 2016 onwards, net revenues generally oscillate between 3.4 billion and 4.3 billion USD per quarter, with occasional increases to around 4.3 billion USD, notably in December 2017 and December 2019. The data concludes with a lower figure of approximately 3.6 billion USD in March 2020. This pattern indicates periods of strong revenue performance interspersed with marked decreases, suggesting seasonal or operational factors affecting sales.*
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment, including right-of-use assets, shows an initial relatively stable range from March 2015 to December 2018, generally fluctuating between 1.56 billion and 1.79 billion USD. Starting from March 2019, a notable increase occurs, with values rising steadily each quarter, reaching a peak of approximately 2.42 billion USD in December 2019 and slightly declining thereafter to about 2.37 billion USD in March 2020. This increase suggests significant investments or acquisitions in fixed assets during this later period, potentially related to expansion or operational improvements.*
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, available from September 2015 onward, reveals a downward trend over time. It starts relatively high at 9.58 and reaches a peak near 9.93 in December 2015. Following this peak, the ratio progressively declines, with minor fluctuations, to values below 7.0 by December 2019 and March 2020. This decline suggests that despite increases in net revenues, the efficiency with which the fixed assets generate revenue is decreasing. The inverse relationship between rising fixed asset bases and decreasing turnover ratios could imply that asset growth outpaces revenue growth or that assets are underutilized.*
- Overall Observations
- The quarterly financial data indicate a company experiencing fluctuating revenue streams, combined with a phase of increasing investments in fixed assets beginning around 2019. Coinciding with this asset growth is a declining fixed asset turnover ratio, suggesting a loss in asset efficiency or a shift in asset utilization strategies. The fluctuations in net revenues, coupled with rising property and equipment values, warrant further investigation into the underlying operational changes or market conditions impacting these trends.
Total Asset Turnover
Allergan PLC, total asset turnover calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q1 2020 Calculation
Total asset turnover
= (Net revenuesQ1 2020
+ Net revenuesQ4 2019
+ Net revenuesQ3 2019
+ Net revenuesQ2 2019)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues exhibit significant variability throughout the periods analyzed. Starting from a high of approximately 2,562,600 thousand US dollars in the first quarter of 2015, the values fluctuate sharply, reaching peaks around the mid-points of years and declining somewhat towards year-end quarters. The data reflects a pattern of quarterly revenue variability without a strong consistent upward or downward trend over the entire time span. In the most recent quarters, revenues hover near the 3,600,000 to 4,350,000 thousand US dollars range, indicating some recovery or stabilization compared to earlier mid-year peaks in 2015.
- Total Assets
- Total assets demonstrate a clear downward trend during the timeframe. Beginning at approximately 139,460,700 thousand US dollars in the first quarter of 2015, asset values gradually decline over subsequent periods, falling below 100,000,000 thousand US dollars by the final reported quarter in 2020. This consistent decrease suggests asset disposals, depreciation, or other factors contributing to a contraction in total asset base over time.
- Total Asset Turnover Ratio
- The total asset turnover ratio exhibits a steady upward trend throughout the periods with available data. Starting at 0.11 in the last quarter of 2015, the ratio increases incrementally each quarter, reaching 0.18 by the first quarter of 2020. This improvement indicates enhanced efficiency in utilizing assets to generate revenues, reflecting better operational performance or asset management despite the declining total asset base.
Equity Turnover
Allergan PLC, equity turnover calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q1 2020 Calculation
Equity turnover
= (Net revenuesQ1 2020
+ Net revenuesQ4 2019
+ Net revenuesQ3 2019
+ Net revenuesQ2 2019)
÷ Shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends over the examined period. Net revenues exhibit a pattern of fluctuations with an overall upward tendency until the end of 2017, followed by periods of variability without a strong directional trend. The highest revenue points are observed primarily in the second and fourth quarters, indicating a possible seasonal influence or business cycle effect.
Shareholders’ equity shows a general decline across the years. After reaching a peak around the third quarter of 2016, equity values steadily decrease through to the first quarter of 2020. This downward movement suggests potential changes in retained earnings, share buybacks, dividends, or other equity adjustments impacting the company’s equity base.
Equity turnover ratios are only available starting from the end of 2015. The ratio shows a gradual increase over time, indicating a growing efficiency in utilizing shareholders' equity to generate revenue. Beginning near 0.15, the equity turnover ascends steadily to around 0.28 by early 2020, reflecting an improvement in the company's capacity to employ invested equity for revenue production.
- Net Revenues
- Fluctuated quarterly, with significant peaks in mid and late year quarters; displayed a moderate growth trend up to 2017, then experienced inconsistency through 2018 to early 2020.
- Shareholders’ Equity
- Reached a high level in 2016, but subsequently declined consistently through 2017 to early 2020, indicating a reduction in net equity possibly due to corporate actions or financial results.
- Equity Turnover
- Improved steadily from late 2015 onwards, nearly doubling through the evaluation period. This suggests enhanced efficiency in leveraging equity to produce revenues.