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.
Long-term Activity Ratios (Summary)
Allergan Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31), 10-K (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30), 10-Q (reporting date: 2010-03-31).
The analysis of the quarterly financial ratios over the observed period reveals distinct trends for each key turnover metric. The data begins from March 2010, with some missing initial values, and extends through December 2014.
- Net Fixed Asset Turnover
- This ratio demonstrates a generally positive trend, increasing from a value of 6.02 in March 2011 to 7.08 in December 2014. The increase is steady and consistent, reflecting an improving efficiency in generating revenue from net fixed assets over time. Minor fluctuations are present, but the overall movement suggests enhanced utilization or increased sales relative to fixed assets.
- Total Asset Turnover
- The total asset turnover shows a relatively stable pattern, fluctuating within a narrow range around 0.58 to 0.65 on a quarterly basis. The highest value recorded was 0.65 in September 2011, followed by a slight decline and stabilization between 0.57 and 0.63. Towards the end of the period, the ratio decreased slightly, reaching 0.57 in December 2014. This indicates modest variations in the efficiency of the company’s overall asset usage in generating sales, with no substantial improvement or deterioration.
- Equity Turnover
- The equity turnover ratio remains close to unity throughout the observed quarters, ranging from 0.92 to 1.08. The highest point, 1.08, occurred in March 2013, followed by a gradual decline towards 0.92 by December 2014. This suggests a fairly consistent but slightly weakening ability to generate revenue from shareholders' equity over the period. The fluctuations are comparatively small, implying stable but cautious equity utilization.
Overall, the company demonstrates an improving trend in leveraging fixed assets to generate revenues, while total asset and equity turnovers remain relatively stable with slight declines in the later years. This mixed pattern could be indicative of strategic asset investments focusing on fixed assets rather than overall asset base or equity enhancements.
Net Fixed Asset Turnover
Allergan Inc., net fixed asset turnover calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 | Jun 30, 2010 | Mar 31, 2010 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Product net sales | 1,889,000) | 1,790,700) | 1,827,300) | 1,619,100) | 1,659,600) | 1,528,400) | 1,577,000) | 1,432,500) | 1,484,600) | 1,391,100) | 1,467,400) | 1,365,700) | 1,382,800) | 1,311,100) | 1,400,400) | 1,252,800) | 1,290,100) | 1,192,000) | 1,231,700) | 1,105,800) | ||||||
| Property, plant and equipment, net | 1,006,300) | 1,005,300) | 977,900) | 942,300) | 923,200) | 877,000) | 866,200) | 853,900) | 852,900) | 822,800) | 811,600) | 807,000) | 807,000) | 791,100) | 795,100) | 788,500) | 800,600) | 778,000) | 785,900) | 795,400) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover1 | 7.08 | 6.86 | 6.78 | 6.78 | 6.71 | 6.87 | 6.79 | 6.76 | 6.69 | 6.81 | 6.81 | 6.77 | 6.63 | 6.64 | 6.46 | 6.30 | 6.02 | — | — | — | ||||||
| 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-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31), 10-K (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30), 10-Q (reporting date: 2010-03-31).
1 Q4 2014 Calculation
Net fixed asset turnover
= (Product net salesQ4 2014
+ Product net salesQ3 2014
+ Product net salesQ2 2014
+ Product net salesQ1 2014)
÷ Property, plant and equipment, net
= (1,889,000 + 1,790,700 + 1,827,300 + 1,619,100)
÷ 1,006,300 = 7.08
2 Click competitor name to see calculations.
The financial data indicates a generally positive trajectory in product net sales over the five-year period from March 2010 to December 2014. Starting at approximately $1,105,800 thousand in the first quarter of 2010, sales increased steadily with minor fluctuations, reaching $1,889,000 thousand by the last quarter of 2014. Notably, there was a consistent pattern of higher sales in the latter quarters of each year, suggestive of potential seasonality or increased market activities toward year-end.
Regarding the net property, plant, and equipment values, the figures show relative stability with a modest upward trend. Beginning at $795,400 thousand in Q1 2010, the net book value declined slightly through mid-2010 but resumed growth afterward. The value completed the period at $1,006,300 thousand in Q4 2014, indicating moderate capital investment or asset appreciation over the years. The increases appear incremental rather than abrupt, reflecting steady asset management or expansion.
The net fixed asset turnover ratio, available from mid-2010 onwards, reflects the efficiency with which fixed assets generate sales revenue. Starting at 6.02 in September 2010, this ratio showed gradual improvement with some minor variations, ending at 7.08 in the last quarter of 2014. The increasing ratio suggests enhanced asset utilization, meaning each dollar invested in fixed assets contributed to higher sales over time. The ratio remained relatively stable within a narrow band during this period, highlighting consistent operational efficiency.
In summary, the data reveals a firm with expanding sales complemented by a stable and somewhat increasing fixed asset base. Improved fixed asset turnover ratios imply gains in operational efficiency, allowing for better sales performance without proportionate increases in fixed asset investments. These trends collectively underscore positive growth dynamics and prudent asset utilization over the observed timeframe.
- Product Net Sales
- Consistently grew from $1,105,800 thousand in early 2010 to $1,889,000 thousand by the end of 2014, with seasonal increases in later quarters.
- Property, Plant, and Equipment, Net
- Generally stable with a slight upward trend, increasing modestly from $795,400 thousand to over $1,000,000 thousand, indicative of steady capital investment.
- Net Fixed Asset Turnover Ratio
- Improved from 6.02 in late 2010 to 7.08 in late 2014, reflecting enhanced effectiveness in using fixed assets to generate sales revenue.
Total Asset Turnover
Allergan Inc., total asset turnover calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 | Jun 30, 2010 | Mar 31, 2010 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Product net sales | 1,889,000) | 1,790,700) | 1,827,300) | 1,619,100) | 1,659,600) | 1,528,400) | 1,577,000) | 1,432,500) | 1,484,600) | 1,391,100) | 1,467,400) | 1,365,700) | 1,382,800) | 1,311,100) | 1,400,400) | 1,252,800) | 1,290,100) | 1,192,000) | 1,231,700) | 1,105,800) | ||||||
| Total assets | 12,415,700) | 11,645,800) | 10,990,800) | 10,720,200) | 10,574,300) | 10,144,600) | 9,675,000) | 9,250,500) | 9,179,300) | 8,910,900) | 8,673,400) | 8,684,200) | 8,508,600) | 8,184,000) | 7,879,600) | 8,370,700) | 8,308,100) | 8,540,100) | 7,787,600) | 7,628,400) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Total asset turnover1 | 0.57 | 0.59 | 0.60 | 0.60 | 0.59 | 0.59 | 0.61 | 0.62 | 0.62 | 0.63 | 0.64 | 0.63 | 0.63 | 0.64 | 0.65 | 0.59 | 0.58 | — | — | — | ||||||
| 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-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31), 10-K (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30), 10-Q (reporting date: 2010-03-31).
1 Q4 2014 Calculation
Total asset turnover
= (Product net salesQ4 2014
+ Product net salesQ3 2014
+ Product net salesQ2 2014
+ Product net salesQ1 2014)
÷ Total assets
= (1,889,000 + 1,790,700 + 1,827,300 + 1,619,100)
÷ 12,415,700 = 0.57
2 Click competitor name to see calculations.
- Product Net Sales
- Product net sales exhibited an overall upward trend across the periods analyzed. Beginning at approximately $1.11 billion in the quarter ending March 31, 2010, sales generally increased each quarter, reaching nearly $1.89 billion by December 31, 2014. Notable seasonal increases are present, particularly in the fourth quarters, where sales consistently rose from around $1.29 billion in December 2010 to nearly $1.89 billion by the end of 2014. There were minor fluctuations within some quarters, but the long-term trajectory reflects steady growth in sales revenue.
- Total Assets
- Total assets also showed a significant increase over the period. Starting at approximately $7.63 billion in March 2010, assets grew steadily to over $12.42 billion by December 2014. The increase was relatively consistent with small variances each quarter, indicating ongoing investment or acquisition activity. The asset base expanded by about 62% over the almost five-year span, reflecting the company's growth in scale and resources available to support its operations.
- Total Asset Turnover
- The total asset turnover ratio, available beginning in September 2010, indicates how efficiently the company utilized its assets to generate sales. Initially at 0.58, it showed a slight improvement to 0.65 by June 2011 but then gradually declined to 0.57 by December 2014. This downward trend suggests that although total assets were increasing, the efficiency in generating net sales from these assets diminished somewhat over time. This could point to increasing investment in assets that have yet to fully translate into proportional sales growth or a shift in asset composition.
- Overall Insights
- The company demonstrated strong growth in both product net sales and total assets from 2010 through 2014. However, the declining asset turnover ratio highlights a potential area of focus, indicating that asset growth outpaced sales growth to a degree. Continued monitoring of asset utilization efficiency will be important to ensure that the expansion in asset base contributes effectively to revenue generation. Seasonal patterns in sales, with higher activity in the later quarters of each year, suggest predictable demand cycles that may require strategic inventory and resource planning.
Equity Turnover
Allergan Inc., equity turnover calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 | Jun 30, 2010 | Mar 31, 2010 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Product net sales | 1,889,000) | 1,790,700) | 1,827,300) | 1,619,100) | 1,659,600) | 1,528,400) | 1,577,000) | 1,432,500) | 1,484,600) | 1,391,100) | 1,467,400) | 1,365,700) | 1,382,800) | 1,311,100) | 1,400,400) | 1,252,800) | 1,290,100) | 1,192,000) | 1,231,700) | 1,105,800) | ||||||
| Total Allergan, Inc. stockholders’ equity | 7,753,000) | 7,110,700) | 6,786,000) | 6,617,900) | 6,463,200) | 6,085,900) | 5,721,900) | 5,337,100) | 5,837,100) | 5,569,600) | 5,438,800) | 5,458,600) | 5,309,600) | 5,105,700) | 4,963,900) | 4,865,700) | 4,757,700) | 4,459,500) | 5,088,000) | 4,944,800) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Equity turnover1 | 0.92 | 0.97 | 0.98 | 0.96 | 0.96 | 0.99 | 1.03 | 1.08 | 0.98 | 1.01 | 1.02 | 1.00 | 1.01 | 1.03 | 1.03 | 1.02 | 1.01 | — | — | — | ||||||
| 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-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31), 10-K (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30), 10-Q (reporting date: 2010-03-31).
1 Q4 2014 Calculation
Equity turnover
= (Product net salesQ4 2014
+ Product net salesQ3 2014
+ Product net salesQ2 2014
+ Product net salesQ1 2014)
÷ Total Allergan, Inc. stockholders’ equity
= (1,889,000 + 1,790,700 + 1,827,300 + 1,619,100)
÷ 7,753,000 = 0.92
2 Click competitor name to see calculations.
- Product net sales
-
Product net sales exhibited an overall upward trend from March 31, 2010, through December 31, 2014. Starting at approximately 1,105,800 thousand US dollars in Q1 2010, sales generally increased with some fluctuations. Notably, there was a substantial increase from Q1 2013 (1,432,500 thousand) to Q4 2014 (1,889,000 thousand), reflecting strong growth during this period.
There are some periods of moderate decline or stagnation, such as between Q4 2010 and Q1 2011, and between Q3 2013 and Q1 2014, but these dips were followed by recovery and further growth. The sales consistently surpassed one million thousand US dollars each quarter, indicating a stable revenue base with growth phases.
- Total Allergan, Inc. stockholders’ equity
-
The total stockholders’ equity displayed a general increasing trend over the analyzed periods, starting from about 4,944,800 thousand US dollars in Q1 2010 to 7,753,000 thousand US dollars by Q4 2014. Equity values showed some volatility in the early periods, with a decline visible in Q3 2010, but subsequent quarters showed recovery and a steady increase thereafter.
In particular, a marked rise is evident from Q1 2013 onwards, with equity moving from approximately 5,337,100 thousand to 7,753,000 thousand at the end of 2014, indicating strengthening financial position and possibly retained earnings accumulation or capital infusions during this period.
- Equity turnover
-
Equity turnover ratios are available from Q3 2010 onwards, fluctuating in a narrow range near 1.0 throughout the period. The ratios display slight variations, mostly maintaining values between 0.92 and 1.08.
This stability suggests consistent efficiency in generating net sales from the equity base, though a slight decreasing trend is noticeable in the last quarters of 2014, with the ratio declining from close to 0.98 in early 2014 to 0.92 by Q4 2014. This could indicate a relative increase in equity compared to sales growth towards the end of the period.