Allergan PLC (NYSE:AGN)

Gross profit margin

The gross profit margin experienced a significant increase from 68.08% in 2015 to a peak of 87.23% in 2016, maintaining high levels above 84% in subsequent years through 2019. This indicates a strong ability to efficiently manage cost of goods sold relative to revenue, with a slight downward trend after 2016 but still remaining robust.

Operating profit margin

The operating profit margin remained negative throughout the period, starting at -20% in 2015 and fluctuating adversely to reach a low of -39.57% in 2018 before improving slightly to -27.63% in 2019. This suggests persistent operational challenges affecting core profitability before interest and taxes, with some recovery noted in the final year.

Net profit margin

The net profit margin shows substantial volatility, beginning at a positive 25.98% in 2015 and rising sharply to an exceptionally high 102.76% in 2016, a figure that likely reflects a one-time event or exceptional gain. This was followed by a pronounced decline into negative territory from 2017 onward, stabilizing around -32% in the last two years, indicating net losses and possible challenges in cost management or extraordinary expenses.

Return on equity (ROE)

Return on equity increased considerably from 5.11% in 2015 to 19.65% in 2016, mirroring the net profit margin trend. However, it declined sharply to negative values in subsequent years, reaching -9.06% in 2019. This points to deteriorating shareholder returns and possibly increased financial pressure or losses that have eroded equity value.

Return on assets (ROA)

Return on assets followed a pattern similar to ROE, improving from 2.88% in 2015 to 11.61% in 2016, then falling to negative values during the following years, ending at -5.57% in 2019. This reflects declining efficiency in asset utilization to generate profits over time.

The financial data reveals several key trends over the five-year period ending December 31, 2019.

Net Revenues

Net revenues experienced fluctuations over the analyzed period. After an initial decline from approximately 15.07 billion in 2015 to 14.57 billion in 2016, revenues increased notably to 15.94 billion in 2017, followed by a slight decrease in 2018 to 15.79 billion, and then a marginal increase again in 2019, reaching nearly 16.09 billion. Overall, net revenues showed a recovery trend after the dip in 2016.

Gross Profit

Gross profit exhibited a generally upward trajectory from 10.26 billion in 2015 to a peak of around 13.77 billion in 2017. Following this peak, it slightly declined to approximately 13.60 billion in 2018 and remained nearly flat into 2019. The increase between 2015 and 2017 suggests improved cost management or favorable pricing, though the plateau and small dip afterwards may indicate rising costs or challenges in maintaining earlier growth momentum.

Gross Profit Margin

The gross profit margin showed a striking jump from 68.08% in 2015 to over 87% in 2016, then stabilized slightly below this level through 2019, gradually decreasing from 87.23% in 2016 to 84.5% in 2019. This dramatic improvement between 2015 and 2016 indicates enhanced profitability relative to revenues, possibly due to operational efficiencies or shifts in product mix. The gradual decline in margin post-2016 suggests some erosion in cost advantages or pressure on pricing, yet margins remained substantially higher than the 2015 baseline throughout the remainder of the period.

In summary, the data shows that the company experienced an initial dip in revenue in 2016, followed by recovery and growth through 2019. Gross profit followed a similar upward trend, with a notable increase in profitability margins occurring in 2016 that was largely maintained in subsequent years despite a slight downward trend. These patterns may reflect strategic changes or market conditions influencing cost structure and revenue generation during the period under review.

The financial data indicates several notable trends over the five-year period ending in 2019. Despite fluctuations in net revenues, the company consistently reported operating losses, reflecting ongoing challenges in achieving profitability.

Operating Loss

The operating loss showed a general pattern of significant volatility. It decreased from approximately -3.01 billion USD in 2015 to -1.83 billion USD in 2016, indicating some improvement. However, it subsequently worsened markedly, reaching around -5.92 billion USD in 2017 and further -6.25 billion USD in 2018. In 2019, the operating loss declined to about -4.45 billion USD, suggesting a partial recovery but still remaining substantially negative.

Net Revenues

Net revenues remained relatively stable over the period with a modest increasing trend overall. Starting at approximately 15.07 billion USD in 2015, revenues slightly declined to about 14.57 billion USD in 2016, then recovered and increased to 15.94 billion USD in 2017. They held relatively steady around 15.79 billion USD in 2018 and improved to nearly 16.09 billion USD in 2019. This suggests consistent top-line performance despite the volatile operating results.

Operating Profit Margin

The operating profit margin was negative throughout the entire period, signaling an ongoing inability to generate operating profits. The margin improved from -20% in 2015 to -12.53% in 2016, coinciding with the temporary decrease in operating loss. Nevertheless, the margin deteriorated sharply to -37.15% and -39.57% in 2017 and 2018, respectively, reflecting a deepening operational inefficiency. In 2019, the margin improved somewhat to -27.63%, aligning with the partial reduction in operating loss but still indicating considerable operating challenges.

Overall, the company experienced unstable and negative operating performance over the period, with fleeting improvement in 2016 followed by significant operational setbacks in subsequent years. Although net revenues were relatively stable and slightly upward trending, the persistent and sizable operating losses highlight the need for strategic initiatives to enhance profitability and operational efficiency.

Net income (loss) attributable to shareholders

The net income exhibited significant fluctuation over the analyzed period. After a positive figure of approximately 3.92 billion US dollars in 2015, there was a substantial increase in 2016 reaching around 14.97 billion US dollars. However, this was followed by a sharp decline into negative territory, with losses recorded at approximately 4.13 billion, 5.10 billion, and 5.27 billion US dollars in 2017, 2018, and 2019 respectively. This indicates a transition from strong profitability in the earlier years to sustained losses in the latter years.

Net revenues

Net revenues showed relative stability with moderate fluctuations throughout the period. Beginning at about 15.07 billion US dollars in 2015, revenues slightly decreased to 14.57 billion in 2016, then increased steadily to reach approximately 16.09 billion US dollars in 2019. Overall, revenues remained within a range of 14.57 billion to 16.09 billion US dollars, suggesting consistent sales or service volume despite changes in profitability.

Net profit margin

The net profit margin experienced dramatic shifts during the timeframe. Starting at a positive 26.0% in 2015, the margin surged to an unusually high 102.8% in 2016, which may imply extraordinary gains or accounting adjustments during that year. Following this peak, the margin sharply reversed into negative percentages, reflecting losses exceeding 25% each year from 2017 to 2019. The margin remained consistently negative and worsened slightly from -25.9% in 2017 to approximately -32.8% in 2019, highlighting increasingly adverse profitability conditions.

Net Income (Loss) Attributable to Shareholders

The net income shows significant volatility across the analyzed periods. In 2015, the company reported a positive net income of approximately $3.92 billion, which markedly increased in 2016 to roughly $14.97 billion. However, starting from 2017, the company experienced consistent net losses, amounting to approximately $4.13 billion in 2017, increasing further to about $5.10 billion in 2018, and reaching approximately $5.27 billion in 2019. This trend indicates a sharp deterioration in profitability after 2016.

Shareholders’ Equity

Shareholders’ equity exhibited a declining trend over the specified period. It decreased modestly from around $76.59 billion in 2015 to approximately $76.19 billion in 2016. From 2017 onwards, the equity diminished more significantly, falling to about $73.82 billion in 2017, then to $65.11 billion in 2018, and further down to $58.17 billion in 2019. This declining trend in equity reflects accumulated losses and possibly other factors impacting the company’s net assets.

Return on Equity (ROE)

Return on equity followed a pattern consistent with the fluctuations in net income. ROE was positive at 5.11% in 2015 and peaked at 19.65% in 2016, suggesting efficient use of equity to generate profit during these years. From 2017 forward, ROE turned negative, corresponding with the net losses reported. It declined to -5.59% in 2017, worsened to -7.83% in 2018, and further to -9.06% in 2019, indicating a sustained period where the company failed to generate returns on shareholders' equity.

Overall Patterns and Insights

The financial data reflects a challenging period for the company starting in 2017, characterized by losses, shrinking equity, and negative returns on equity. The significant drop in net income and the continuous decline in shareholders' equity suggest operational or strategic difficulties impacting financial performance. The negative returns on equity for three consecutive years highlight inefficiencies in capital utilization and possibly increased financial risk. The data implies a need for reviewing financial strategies and operational improvements to restore profitability and stabilize equity levels.

The financial data reveals significant fluctuations in profitability and asset base over the five-year period.

Net Income (Loss) Attributable to Shareholders

The net income demonstrated a sharp increase from approximately 3.92 billion US dollars in 2015 to nearly 15 billion US dollars in 2016, suggesting a highly profitable year. However, subsequent years show a reversal to negative net income values, with losses increasing progressively from about 4.13 billion in 2017 to over 5.27 billion US dollars in 2019. This depicts a transition from profitability to sustained operating losses over the latter part of the timeline.

Total Assets

Total assets exhibited a declining trend throughout the period, starting at approximately 136 billion US dollars in 2015 and decreasing steadily each year to just under 95 billion US dollars by the end of 2019. This significant reduction in asset base may indicate asset disposals, write-downs, or other strategic financial adjustments.

Return on Assets (ROA)

The ROA closely mirrors the net income trend, beginning at a positive 2.88% in 2015 and peaking at 11.61% in 2016, signifying effective asset utilization during these years. Following 2016, ROA turned negative, reflecting the net losses and diminishing asset efficiency, with values deteriorating from -3.49% in 2017 to -5.57% in 2019. This decline points to challenges in generating returns from the company's asset base.

Overall, the data indicates a period of strong profitability up to 2016, after which the company faced increasing financial difficulties, culminating in sustained losses and reduced asset efficiency. The persistent decline in total assets further underscores a contraction in the company’s resource base over the analyzed timeframe.