Allergan PLC (NYSE:AGN)

Gross Profit Margin

The gross profit margin demonstrates a generally strong and stable trend over the periods analyzed. Starting at 68.08% in March 2016, it rises significantly to a peak above 87% in the quarters from December 2016 to March 2017. After that, the margin maintains a relatively high and consistent level around 86%, with a slight downward trend observable towards the end of 2019 and beginning of 2020, declining to approximately 83.73% by March 2020. This indicates sustained efficiency in core production or service activities with mild compression in later periods.

Operating Profit Margin

The operating profit margin reveals a volatile and generally negative trend throughout the timeframe. Initially, it experiences fluctuations from -20% to about -12.53% between late 2015 and late 2016. The margin deteriorates sharply starting in 2017, hitting a low point of around -60.39% in December 2019, with some intermittent improvements such as -5.95% in December 2017 and a rebound to -21.34% in March 2020. These figures suggest challenges in managing operational costs relative to revenue, with increasing losses particularly prominent from 2017 onwards before some recovery signs in early 2020.

Net Profit Margin

The net profit margin displays considerable volatility and substantial negative swings. It begins with solid positive values in 2016, reaching a notably high point of 107.27% in December 2016, and remains elevated but declining through the first half of 2017. However, from the second half of 2017 onward, the margin turns sharply negative, with troughs reaching -58.5% in December 2019. A rebound is noted in the first quarter of 2020 to -15.44%. This pattern indicates episodic gains likely influenced by extraordinary or non-operational factors, followed by sizeable losses and partial recovery in the latest period.

Return on Equity (ROE)

Return on equity exhibits modest positive returns initially, with values ranging from about 5.11% to nearly 19.65% between 2016 and early 2017. From mid-2017, ROE declines considerably, entering negative territory through to early 2020, with a low point near -15.82% at year-end 2019. A partial recovery is apparent by March 2020, improving to around -4.28%. This trajectory reflects deteriorating profitability and efficiency in generating shareholder returns, associated with the earlier observed declines in operating and net profit margins.

Return on Assets (ROA)

Return on assets follows a similar pattern to ROE, with positive but relatively low values from 2016 through early 2017, peaking at approximately 11.61%. Subsequently, returns diminish sharply, turning negative in mid-2017 and persistently declining to near -9.8% in December 2019. A slight improvement is recorded in the first quarter of 2020 to around -2.81%. This indicates reduced effectiveness in asset utilization to generate profits, consistent with broader profitability challenges across the periods.

Gross Profit Trend

The gross profit figures show significant fluctuations over the periods analyzed. Starting from 1,542,500 thousand USD in March 2015, gross profit peaks at several intervals, notably reaching 3,624,900 thousand USD in June 2015, 3,745,200 thousand USD in December 2017, and 3,647,000 thousand USD in December 2019. However, there are also notable declines, such as the drop to 2,247,200 thousand USD in December 2015 and again to 2,981,300 thousand USD in March 2020. Overall, the gross profit exhibits a pattern of recovery and growth in certain quarters, interspersed with periods of decline.

Net Revenues Trend

Net revenues show a broadly upward trend with some volatility. Initial data points indicate 2,562,600 thousand USD in March 2015 with a pronounced peak at 5,755,000 thousand USD in June 2015. Subsequent quarters show a decrease but revenue generally rises again, with multiple peaks such as 4,326,100 thousand USD in December 2017 and 4,351,000 thousand USD in December 2019. However, the last recorded quarter, March 2020, shows a decrease to 3,604,400 thousand USD. The overall trend suggests growth punctuated by periodic downturns.

Gross Profit Margin Analysis

The gross profit margin percentages are available starting from March 2016. Margins show a consistent increase from 68.08% in March 2016 to approximately 87% in the subsequent quarters of 2016 and 2017, signaling an improvement in profitability relative to revenues. Throughout 2017 and 2018, the margin stabilizes around 86%, maintaining a strong and consistent profitability level. From 2019 onward, there is a slight but steady decline in the margin from 86.12% in March 2019 down to 83.73% by March 2020. This trend indicates a modest erosion of profit relative to revenues in the most recent periods analyzed.

Overall Insights

The financial data demonstrates cyclical variability in both gross profit and net revenues, with a general long-term upward trajectory interrupted by periodic declines. The gross profit margin improved significantly starting in early 2016 and remained strong for several years before showing signs of a mild decline in 2019 and early 2020. The data suggest strong revenue and profit generation capabilities but also highlight vulnerability to downward pressures in the most recent quarters. It is important to monitor these trends to understand underlying factors affecting profitability and revenues.

The financial data reveals notable volatility in operating income, net revenues, and operating profit margins over the reported periods. The operating income consistently registers negative values, indicating operating losses throughout the timeline. However, the magnitude of these losses varies significantly across quarters.

Operating Income (Loss)

Operating losses exhibit a fluctuating pattern. Early periods show less severe losses, with figures such as approximately -677,700 thousand US$ on March 31, 2015. There are significant spikes in losses during quarters like September 30, 2017 (-4,022,300 thousand US$) and December 31, 2018 (-5,384,100 thousand US$), indicating periods of intensified financial strain. Towards the most recent quarters, losses decrease somewhat but remain substantial, with figures such as -1,299,600 thousand US$ on March 31, 2020. This suggests ongoing operational challenges impacting profitability.

Net Revenues

Net revenues demonstrate considerable fluctuation but generally maintain a range between approximately 2,562,600 and 5,751,000 thousand US$. Initial quarters show variability with peaks, such as 5,755,000 thousand US$ in June 30, 2015. From 2016 onward, revenues fluctuate around a narrower band, often between roughly 3,500,000 and 4,350,000 thousand US$, with occasional peaks and troughs. No consistent upward or downward trend is apparent; instead, revenue appears to oscillate within this range, implying relative stability in sales despite operational losses.

Operating Profit Margin (%)

Operating profit margins are negative for all recorded periods, confirming the presence of operating losses. Margins vary from roughly -5.95% to as low as -60.39%, evidencing significant profitability pressures. A marked deterioration occurs between late 2017 and 2019, with margins dropping well below -30%, occasionally surpassing -50%, coinciding with spikes in operating losses. The most recent date reflects a smaller negative margin of -21.34%, suggesting some improvement but remaining in the negative range.

Overall, the data indicates that despite maintaining relatively stable net revenues, the company has faced recurrent and frequently deep operating losses throughout these periods. The widening negative margins and periodic spikes in losses highlight operational inefficiencies or increased costs that outpace revenues. The pattern may warrant closer examination of underlying business activities, cost structures, or external factors impacting performance.

Net income (loss) attributable to shareholders

The net income exhibits significant volatility across the periods. There are large swings between profits and losses, with notable spikes such as a gain of approximately 15.22 million USD in September 2016, contrasting with losses in several other quarters. For instance, periods like March 2015, June 2015, December 2015, and several quarters from 2017 through 2019 show negative outcomes. The most recent quarter (March 2020) witnesses a turnaround with a positive net income of 378,000 USD after a sequence of negative results. Overall, net income does not follow a consistent trend but reflects high variability and episodic gains amid frequent losses.

Net revenues

Net revenues demonstrate a generally stable pattern with some fluctuations but no dramatic changes. Values oscillate mostly between approximately 2.5 million and 5.7 million USD, with no clear upward or downward trajectory across the entire span. The revenue peaks at 5.75 million USD in June 2015 but remains relatively steady around 3.5 to 4.3 million USD in most quarters following 2015. This indicates a relatively stable revenue base despite the volatility in net income.

Net profit margin

Profit margins display marked inconsistency and substantial variation. After the initial months, margins spike notably in the mid-2016 period to over 100%, indicating anomalous profitability potentially linked to extraordinary items or accounting adjustments. However, from late 2016 onwards, margins fall sharply into negative territory, reaching lows near -58.5% in December 2019. Positive margin occurrences such as in December 2018 (14.5%) are interspersed with several quarters of deep negative margins, indicating sustained challenges to profitability. The trend highlights periods of high efficiency contrasted with recurring losses impacting shareholders' returns adversely.

Net Income (Loss) Trend

The net income attributable to shareholders exhibits significant volatility over the periods analyzed. Beginning with substantial losses in early 2015, the company recorded a notable positive spike in September 2015. This was followed by fluctuating regular losses and gains through the years, with the highest positive net income recorded in September 2016. However, recent quarters, particularly from 2017 onwards, reveal predominantly negative net income values, indicating challenges in sustaining profitability. A recovery trend appears in the first quarter of 2020 with a positive net income.

Shareholders’ Equity Trend

Shareholders’ equity remained relatively stable but experienced slight erosion over the five-year span. Starting above $71 billion in early 2015, equity peaked near $89.7 billion in the third quarter of 2016, before embarking on a general decline. From 2017 onwards, equity values progressively decreased, falling below $58 billion by the first quarter of 2020. This downward trend may reflect distributed dividends, share repurchases, net losses, or other equity-reducing activities.

Return on Equity (ROE) Trend

The ROE data, albeit incomplete in early periods, shows moderate positive returns up to the end of 2016, with a peak reaching almost 20% in early 2017. After this peak, ROE declined sharply, turning negative by the end of 2017 and remaining negative through most of the subsequent quarters up to early 2020. The negative ROE aligns with the net losses during these periods and indicates underperformance in generating profits from shareholders’ equity. The small improvement toward the first quarter of 2020, although still negative, could signal initial stages of financial recovery.

Overall Insights

The financial data reveal a period of considerable instability and challenges in profitability after 2016. Despite a strong equity base initially, the reduction in shareholders' equity and persistent losses point to operational or market difficulties. The negative ROE and recovery signs in early 2020 suggest the company may be facing ongoing challenges but might be beginning to stabilize financial performance. Continuous monitoring of income generation and equity changes will be critical for assessing future financial health.

The analysis of the quarterly financial data reveals several notable trends and fluctuations in the company's net income attributable to shareholders, total assets, and return on assets (ROA).

Net Income (Loss) Attributable to Shareholders

The net income figures show significant volatility throughout the observed period. The company experienced substantial losses in early 2015, with a marked loss of -512,000 thousand US dollars at the end of March. This was followed by a sharp turnaround in the third quarter of 2015, when net income surged dramatically to 5,301,200 thousand US dollars. However, this spike was short-lived, as the company reverted to losses by the end of 2015 and into 2016. The pattern of alternating profits and losses continued through 2017 and 2018, with net income fluctuating between negative values and smaller positive figures. The largest positive net income within this dataset appeared in the third quarter of 2016 at 15,220,000 thousand US dollars, indicating a peak in profitability during this period. From 2019 through the first quarter of 2020, the company again faced predominantly negative net income figures, though the magnitude of the losses gradually declined towards the end of the period. The first quarter of 2020 showed a positive net income of 378,000 thousand US dollars, potentially indicating a recovery phase.

Total Assets

The total assets showed a generally declining trend over the entire period from March 2015 to March 2020. Starting at approximately 139,460,700 thousand US dollars in early 2015, total assets decreased to 88,426,200 thousand US dollars by the first quarter of 2020. The decline is fairly steady with some minor fluctuations but no strong recoveries. This downward movement suggests either asset disposals, depreciation, or decreased capital investment over time, reflecting a contraction in the scale of asset holdings.

Return on Assets (ROA)

The ROA data is partial but indicates substantial fluctuations in profitability relative to asset base. Positive ROA was observed only intermittently, with peak values reaching 11.61% in June 2017. Other notable positive ROA values were around 9.99% to 9.58% in late 2015 and early 2017. However, following this peak period, ROA rapidly decreased into negative territory from late 2017 onwards, reaching as low as -9.8% in December 2019, indicating a period of declining profitability and inefficient use of assets. The negative trend persisted into the first quarter of 2020, though the loss ratio improved slightly by that time.

Overall, the data suggests that the company experienced significant financial instability with erratic earnings performance and a steady reduction in asset base. The negative returns on assets in recent periods indicate challenges in generating profits from existing resources, though the slight improvement in the latest quarter may warrant further observation for signs of recovery.