Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

Allergan PLC, profitability ratios

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	Allergan PLC’s gross profit margin improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Allergan PLC’s operating profit margin improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Allergan PLC’s net profit margin improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Allergan PLC’s ROE improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
ROA	A profitability ratio calculated as net income divided by total assets.	Allergan PLC’s ROA improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Allergan PLC, gross profit margin calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Selected Financial Data (USD $ in thousands)
	Gross profit
	Net revenues
	Ratio
	Gross profit margin¹
	Benchmarks
	Gross Profit Margin, Competitors
	Abbott Laboratories
	AbbVie Inc.
	Amgen Inc.
	Biogen Inc.
	Bristol-Myers Squibb Co.
	Celgene Corp.
	Eli Lilly & Co.
	Gilead Sciences Inc.
	Johnson & Johnson
	Merck & Co. Inc.
	Pfizer Inc.
	Regeneron Pharmaceuticals Inc.

2017 Calculations

¹ Gross profit margin = 100 × Gross profit ÷ Net revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	Allergan PLC’s gross profit margin improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

Allergan PLC, operating profit margin calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Selected Financial Data (USD $ in thousands)
	Operating loss
	Net revenues
	Ratio
	Operating profit margin¹
	Benchmarks
	Operating Profit Margin, Competitors
	Abbott Laboratories
	AbbVie Inc.
	Amgen Inc.
	Biogen Inc.
	Bristol-Myers Squibb Co.
	Celgene Corp.
	Eli Lilly & Co.
	Gilead Sciences Inc.
	Johnson & Johnson
	Merck & Co. Inc.
	Pfizer Inc.
	Regeneron Pharmaceuticals Inc.
	Operating Profit Margin, Sector
	Pharmaceuticals & Biotechnology
	Operating Profit Margin, Industry
	Health Care

2017 Calculations

¹ Operating profit margin = 100 × Operating loss ÷ Net revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Allergan PLC’s operating profit margin improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Allergan PLC, net profit margin calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Selected Financial Data (USD $ in thousands)
	Net income (loss) attributable to shareholders
	Net revenues
	Ratio
	Net profit margin¹
	Benchmarks
	Net Profit Margin, Competitors
	Abbott Laboratories
	AbbVie Inc.
	Amgen Inc.
	Biogen Inc.
	Bristol-Myers Squibb Co.
	Celgene Corp.
	Eli Lilly & Co.
	Gilead Sciences Inc.
	Johnson & Johnson
	Merck & Co. Inc.
	Pfizer Inc.
	Regeneron Pharmaceuticals Inc.
	Net Profit Margin, Sector
	Pharmaceuticals & Biotechnology
	Net Profit Margin, Industry
	Health Care

2017 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to shareholders ÷ Net revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Allergan PLC’s net profit margin improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Allergan PLC, ROE calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Selected Financial Data (USD $ in thousands)
	Net income (loss) attributable to shareholders
	Shareholders’ equity
	Ratio
	ROE¹
	Benchmarks
	ROE, Competitors
	Abbott Laboratories
	AbbVie Inc.
	Amgen Inc.
	Biogen Inc.
	Bristol-Myers Squibb Co.
	Celgene Corp.
	Eli Lilly & Co.
	Gilead Sciences Inc.
	Johnson & Johnson
	Merck & Co. Inc.
	Pfizer Inc.
	Regeneron Pharmaceuticals Inc.
	ROE, Sector
	Pharmaceuticals & Biotechnology
	ROE, Industry
	Health Care

2017 Calculations

¹ ROE = 100 × Net income (loss) attributable to shareholders ÷ Shareholders’ equity
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Allergan PLC’s ROE improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Allergan PLC, ROA calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Selected Financial Data (USD $ in thousands)
	Net income (loss) attributable to shareholders
	Total assets
	Ratio
	ROA¹
	Benchmarks
	ROA, Competitors
	Abbott Laboratories
	AbbVie Inc.
	Amgen Inc.
	Biogen Inc.
	Bristol-Myers Squibb Co.
	Celgene Corp.
	Eli Lilly & Co.
	Gilead Sciences Inc.
	Johnson & Johnson
	Merck & Co. Inc.
	Pfizer Inc.
	Regeneron Pharmaceuticals Inc.
	ROA, Sector
	Pharmaceuticals & Biotechnology
	ROA, Industry
	Health Care

2017 Calculations

¹ ROA = 100 × Net income (loss) attributable to shareholders ÷ Total assets
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	Allergan PLC’s ROA improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

	Allergan PLC	Other companies (not purchased previously)
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Relative Valuation
Discounted Cash Flow (DCF) Valuation
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Long-term Trends
Analysis
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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Allergan PLC (AGN)

Profitability Analysis