Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Allergan PLC, short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Allergan PLC inventory turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Allergan PLC receivables turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Allergan PLC payables turnover ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Allergan PLC working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Allergan PLC number of days of inventory outstanding improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Allergan PLC operating cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Allergan PLC number of days of payables outstanding increased from 2017 to 2018 but then slightly decreased from 2018 to 2019. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Allergan PLC cash conversion cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Inventory Turnover
Allergan PLC, inventory turnover 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) | ||||||
| Cost of sales, excludes amortization and impairment of acquired intangibles including product rights | 2,493,100) | 2,191,400) | 2,168,000) | 1,860,800) | 4,810,400) | |
| Inventories | 1,133,100) | 846,900) | 904,500) | 718,000) | 1,009,700) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 2.20 | 2.59 | 2.40 | 2.59 | 4.76 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| AbbVie Inc. | 4.10 | — | — | — | — | |
| Amgen Inc. | 1.22 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 1.88 | — | — | — | — | |
| Danaher Corp. | 4.87 | — | — | — | — | |
| Eli Lilly & Co. | 1.48 | — | — | — | — | |
| Gilead Sciences Inc. | 5.07 | — | — | — | — | |
| Johnson & Johnson | 3.05 | — | — | — | — | |
| Merck & Co. Inc. | 2.36 | — | — | — | — | |
| Pfizer Inc. | 1.23 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.55 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 4.22 | — | — | — | — | |
| Zoetis Inc. | 1.41 | — | — | — | — | |
| Inventory Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 2.36 | — | — | — | — | |
| Inventory Turnover, Industry | ||||||
| Health Care | 9.91 | — | — | — | — | |
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
Inventory turnover = Cost of sales, excludes amortization and impairment of acquired intangibles including product rights ÷ Inventories
= 2,493,100 ÷ 1,133,100 = 2.20
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Allergan PLC inventory turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Receivables Turnover
Allergan PLC, receivables turnover 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) | ||||||
| Net revenues | 16,088,900) | 15,787,400) | 15,940,700) | 14,570,600) | 15,071,000) | |
| Accounts receivable, net | 3,192,300) | 2,868,100) | 2,899,000) | 2,531,000) | 2,401,600) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 5.04 | 5.50 | 5.50 | 5.76 | 6.28 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| AbbVie Inc. | 6.13 | — | — | — | — | |
| Amgen Inc. | 5.47 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 3.89 | — | — | — | — | |
| Danaher Corp. | 5.61 | — | — | — | — | |
| Eli Lilly & Co. | 4.91 | — | — | — | — | |
| Gilead Sciences Inc. | 6.18 | — | — | — | — | |
| Johnson & Johnson | 5.67 | — | — | — | — | |
| Merck & Co. Inc. | 6.91 | — | — | — | — | |
| Pfizer Inc. | 5.93 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 2.94 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 5.87 | — | — | — | — | |
| Zoetis Inc. | 5.76 | — | — | — | — | |
| Receivables Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 5.56 | — | — | — | — | |
| Receivables Turnover, Industry | ||||||
| Health Care | 9.86 | — | — | — | — | |
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
Receivables turnover = Net revenues ÷ Accounts receivable, net
= 16,088,900 ÷ 3,192,300 = 5.04
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Allergan PLC receivables turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Payables Turnover
Allergan PLC, payables turnover 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) | ||||||
| Cost of sales, excludes amortization and impairment of acquired intangibles including product rights | 2,493,100) | 2,191,400) | 2,168,000) | 1,860,800) | 4,810,400) | |
| Accounts payable | 390,400) | 349,800) | 324,500) | 224,900) | 369,400) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 6.39 | 6.26 | 6.68 | 8.27 | 13.02 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| AbbVie Inc. | 5.12 | — | — | — | — | |
| Amgen Inc. | 3.18 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 3.30 | — | — | — | — | |
| Danaher Corp. | 5.23 | — | — | — | — | |
| Eli Lilly & Co. | 3.36 | — | — | — | — | |
| Gilead Sciences Inc. | 6.56 | — | — | — | — | |
| Johnson & Johnson | 3.23 | — | — | — | — | |
| Merck & Co. Inc. | 3.78 | — | — | — | — | |
| Pfizer Inc. | 2.42 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 1.87 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 7.40 | — | — | — | — | |
| Zoetis Inc. | 6.62 | — | — | — | — | |
| Payables Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 3.78 | — | — | — | — | |
| Payables Turnover, Industry | ||||||
| Health Care | 8.04 | — | — | — | — | |
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
Payables turnover = Cost of sales, excludes amortization and impairment of acquired intangibles including product rights ÷ Accounts payable
= 2,493,100 ÷ 390,400 = 6.39
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Allergan PLC payables turnover ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |
Working Capital Turnover
Allergan PLC, working capital turnover 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) | |
| Less: Current liabilities | 11,070,700) | 5,727,900) | 9,848,100) | 7,874,700) | 8,328,300) | |
| Working capital | 56,000) | 747,500) | 1,528,600) | 9,983,200) | 287,100) | |
| Net revenues | 16,088,900) | 15,787,400) | 15,940,700) | 14,570,600) | 15,071,000) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 287.30 | 21.12 | 10.43 | 1.46 | 52.49 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| AbbVie Inc. | 0.98 | — | — | — | — | |
| Amgen Inc. | 3.96 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 2.28 | — | — | — | — | |
| Danaher Corp. | 0.87 | — | — | — | — | |
| Eli Lilly & Co. | 11.54 | — | — | — | — | |
| Gilead Sciences Inc. | 1.08 | — | — | — | — | |
| Johnson & Johnson | 8.81 | — | — | — | — | |
| Merck & Co. Inc. | 8.90 | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 1.41 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 4.48 | — | — | — | — | |
| Zoetis Inc. | 2.13 | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 3.08 | — | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 8.99 | — | — | — | — | |
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
Working capital turnover = Net revenues ÷ Working capital
= 16,088,900 ÷ 56,000 = 287.30
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Allergan PLC working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Average Inventory Processing Period
Allergan PLC, average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 2.20 | 2.59 | 2.40 | 2.59 | 4.76 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 166 | 141 | 152 | 141 | 77 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| AbbVie Inc. | 89 | — | — | — | — | |
| Amgen Inc. | 300 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 194 | — | — | — | — | |
| Danaher Corp. | 75 | — | — | — | — | |
| Eli Lilly & Co. | 247 | — | — | — | — | |
| Gilead Sciences Inc. | 72 | — | — | — | — | |
| Johnson & Johnson | 119 | — | — | — | — | |
| Merck & Co. Inc. | 155 | — | — | — | — | |
| Pfizer Inc. | 296 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 661 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 87 | — | — | — | — | |
| Zoetis Inc. | 258 | — | — | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 155 | — | — | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Health Care | 37 | — | — | — | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.20 = 166
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Allergan PLC number of days of inventory outstanding improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Average Receivable Collection Period
Allergan PLC, average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 5.04 | 5.50 | 5.50 | 5.76 | 6.28 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 72 | 66 | 66 | 63 | 58 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| AbbVie Inc. | 60 | — | — | — | — | |
| Amgen Inc. | 67 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 94 | — | — | — | — | |
| Danaher Corp. | 65 | — | — | — | — | |
| Eli Lilly & Co. | 74 | — | — | — | — | |
| Gilead Sciences Inc. | 59 | — | — | — | — | |
| Johnson & Johnson | 64 | — | — | — | — | |
| Merck & Co. Inc. | 53 | — | — | — | — | |
| Pfizer Inc. | 62 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 124 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 62 | — | — | — | — | |
| Zoetis Inc. | 63 | — | — | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 66 | — | — | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 37 | — | — | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.04 = 72
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Allergan PLC, operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 166 | 141 | 152 | 141 | 77 | |
| Average receivable collection period | 72 | 66 | 66 | 63 | 58 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 238 | 207 | 218 | 204 | 135 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| AbbVie Inc. | 149 | — | — | — | — | |
| Amgen Inc. | 367 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 288 | — | — | — | — | |
| Danaher Corp. | 140 | — | — | — | — | |
| Eli Lilly & Co. | 321 | — | — | — | — | |
| Gilead Sciences Inc. | 131 | — | — | — | — | |
| Johnson & Johnson | 183 | — | — | — | — | |
| Merck & Co. Inc. | 208 | — | — | — | — | |
| Pfizer Inc. | 358 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 785 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 149 | — | — | — | — | |
| Zoetis Inc. | 321 | — | — | — | — | |
| Operating Cycle, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 221 | — | — | — | — | |
| Operating Cycle, Industry | ||||||
| Health Care | 74 | — | — | — | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 166 + 72 = 238
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Allergan PLC operating cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Average Payables Payment Period
Allergan PLC, average payables payment period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 6.39 | 6.26 | 6.68 | 8.27 | 13.02 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 57 | 58 | 55 | 44 | 28 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| AbbVie Inc. | 71 | — | — | — | — | |
| Amgen Inc. | 115 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 110 | — | — | — | — | |
| Danaher Corp. | 70 | — | — | — | — | |
| Eli Lilly & Co. | 109 | — | — | — | — | |
| Gilead Sciences Inc. | 56 | — | — | — | — | |
| Johnson & Johnson | 113 | — | — | — | — | |
| Merck & Co. Inc. | 97 | — | — | — | — | |
| Pfizer Inc. | 151 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 195 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 49 | — | — | — | — | |
| Zoetis Inc. | 55 | — | — | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 96 | — | — | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 45 | — | — | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.39 = 57
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Allergan PLC number of days of payables outstanding increased from 2017 to 2018 but then slightly decreased from 2018 to 2019. |
Cash Conversion Cycle
Allergan PLC, cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 166 | 141 | 152 | 141 | 77 | |
| Average receivable collection period | 72 | 66 | 66 | 63 | 58 | |
| Average payables payment period | 57 | 58 | 55 | 44 | 28 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 181 | 149 | 163 | 160 | 107 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| AbbVie Inc. | 78 | — | — | — | — | |
| Amgen Inc. | 252 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 178 | — | — | — | — | |
| Danaher Corp. | 70 | — | — | — | — | |
| Eli Lilly & Co. | 212 | — | — | — | — | |
| Gilead Sciences Inc. | 75 | — | — | — | — | |
| Johnson & Johnson | 70 | — | — | — | — | |
| Merck & Co. Inc. | 111 | — | — | — | — | |
| Pfizer Inc. | 207 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 590 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 100 | — | — | — | — | |
| Zoetis Inc. | 266 | — | — | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 125 | — | — | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Health Care | 29 | — | — | — | — | |
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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 166 + 72 – 57 = 181
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Allergan PLC cash conversion cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |