Stock Analysis on Net
Stock Analysis on Net

Allergan PLC (NYSE:AGN)

This company has been moved to the archive! The financial data has not been updated since May 7, 2020.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Allergan PLC, balance sheet: goodwill and intangible assets

US$ in thousands

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Product rights and other intangibles 72,217,500 70,235,100 73,892,500 67,801,400 64,544,200
Trade name 690,000 690,000 690,000 690,000 690,000
Definite lived intangible assets, cost basis 72,907,500 70,925,100 74,582,500 68,491,400 65,234,200
Accumulated amortization (39,553,400) (32,277,800) (25,808,300) (14,631,100) (8,506,900)
Definite lived intangible assets, net 33,354,100 38,647,300 48,774,200 53,860,300 56,727,300
IPR&D 4,536,500 5,048,100 5,874,100 8,758,300 11,128,200
Trade name — — — — 76,200
Indefinite lived intangible assets 4,536,500 5,048,100 5,874,100 8,758,300 11,204,400
Net product rights and other intangibles 37,890,600 43,695,400 54,648,300 62,618,600 67,931,700
Goodwill 42,248,300 45,913,300 49,862,900 46,356,100 46,551,500
Goodwill, product rights and other intangible assets 80,138,900 89,608,700 104,511,200 108,974,700 114,483,200

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).

Item Description The company
Net product rights and other intangibles Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Allergan PLC net product rights and other intangibles decreased from 2017 to 2018 and from 2018 to 2019.
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Allergan PLC goodwill decreased from 2017 to 2018 and from 2018 to 2019.
Goodwill, product rights and other intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Allergan PLC goodwill, product rights and other intangible assets decreased from 2017 to 2018 and from 2018 to 2019.

Adjustments to Financial Statements: Removal of Goodwill

Allergan PLC, adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 94,699,100 101,787,600 118,341,900 128,986,300 135,840,700
Less: Goodwill 42,248,300 45,913,300 49,862,900 46,356,100 46,551,500
Total assets (adjusted) 52,450,800 55,874,300 68,479,000 82,630,200 89,289,200
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported) 58,173,600 65,114,100 73,821,100 76,192,700 76,591,400
Less: Goodwill 42,248,300 45,913,300 49,862,900 46,356,100 46,551,500
Shareholders’ equity (adjusted) 15,925,300 19,200,800 23,958,200 29,836,600 30,039,900
Adjustment to Net Income (loss) Attributable To Shareholders
Net income (loss) attributable to shareholders (as reported) (5,271,000) (5,096,400) (4,125,500) 14,973,400 3,915,200
Add: Goodwill impairments 3,552,800 2,841,100 — — —
Net income (loss) attributable to shareholders (adjusted) (1,718,200) (2,255,300) (4,125,500) 14,973,400 3,915,200

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).

Allergan PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Allergan PLC, adjusted financial ratios

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin -32.76% -32.28% -25.88% 102.76% 25.98%
Adjusted net profit margin -10.68% -14.29% -25.88% 102.76% 25.98%
Total Asset Turnover
Reported total asset turnover 0.17 0.16 0.13 0.11 0.11
Adjusted total asset turnover 0.31 0.28 0.23 0.18 0.17
Financial Leverage
Reported financial leverage 1.63 1.56 1.60 1.69 1.77
Adjusted financial leverage 3.29 2.91 2.86 2.77 2.97
Return on Equity (ROE)
Reported ROE -9.06% -7.83% -5.59% 19.65% 5.11%
Adjusted ROE -10.79% -11.75% -17.22% 50.18% 13.03%
Return on Assets (ROA)
Reported ROA -5.57% -5.01% -3.49% 11.61% 2.88%
Adjusted ROA -3.28% -4.04% -6.02% 18.12% 4.38%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Allergan PLC adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Allergan PLC adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Allergan PLC adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Allergan PLC adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Allergan PLC adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

Allergan PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to shareholders (5,271,000) (5,096,400) (4,125,500) 14,973,400 3,915,200
Net revenues 16,088,900 15,787,400 15,940,700 14,570,600 15,071,000
Profitability Ratio
Net profit margin1 -32.76% -32.28% -25.88% 102.76% 25.98%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to shareholders (1,718,200) (2,255,300) (4,125,500) 14,973,400 3,915,200
Net revenues 16,088,900 15,787,400 15,940,700 14,570,600 15,071,000
Profitability Ratio
Adjusted net profit margin2 -10.68% -14.29% -25.88% 102.76% 25.98%

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).

2019 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to shareholders ÷ Net revenues
= 100 × -5,271,000 ÷ 16,088,900 = -32.76%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to shareholders ÷ Net revenues
= 100 × -1,718,200 ÷ 16,088,900 = -10.68%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Allergan PLC adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net revenues 16,088,900 15,787,400 15,940,700 14,570,600 15,071,000
Total assets 94,699,100 101,787,600 118,341,900 128,986,300 135,840,700
Activity Ratio
Total asset turnover1 0.17 0.16 0.13 0.11 0.11
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net revenues 16,088,900 15,787,400 15,940,700 14,570,600 15,071,000
Adjusted total assets 52,450,800 55,874,300 68,479,000 82,630,200 89,289,200
Activity Ratio
Adjusted total asset turnover2 0.31 0.28 0.23 0.18 0.17

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).

2019 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 16,088,900 ÷ 94,699,100 = 0.17

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 16,088,900 ÷ 52,450,800 = 0.31

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Allergan PLC adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Total assets 94,699,100 101,787,600 118,341,900 128,986,300 135,840,700
Shareholders’ equity 58,173,600 65,114,100 73,821,100 76,192,700 76,591,400
Solvency Ratio
Financial leverage1 1.63 1.56 1.60 1.69 1.77
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 52,450,800 55,874,300 68,479,000 82,630,200 89,289,200
Adjusted shareholders’ equity 15,925,300 19,200,800 23,958,200 29,836,600 30,039,900
Solvency Ratio
Adjusted financial leverage2 3.29 2.91 2.86 2.77 2.97

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).

2019 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity
= 94,699,100 ÷ 58,173,600 = 1.63

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 52,450,800 ÷ 15,925,300 = 3.29

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Allergan PLC adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to shareholders (5,271,000) (5,096,400) (4,125,500) 14,973,400 3,915,200
Shareholders’ equity 58,173,600 65,114,100 73,821,100 76,192,700 76,591,400
Profitability Ratio
ROE1 -9.06% -7.83% -5.59% 19.65% 5.11%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to shareholders (1,718,200) (2,255,300) (4,125,500) 14,973,400 3,915,200
Adjusted shareholders’ equity 15,925,300 19,200,800 23,958,200 29,836,600 30,039,900
Profitability Ratio
Adjusted ROE2 -10.79% -11.75% -17.22% 50.18% 13.03%

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).

2019 Calculations

1 ROE = 100 × Net income (loss) attributable to shareholders ÷ Shareholders’ equity
= 100 × -5,271,000 ÷ 58,173,600 = -9.06%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to shareholders ÷ Adjusted shareholders’ equity
= 100 × -1,718,200 ÷ 15,925,300 = -10.79%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Allergan PLC adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to shareholders (5,271,000) (5,096,400) (4,125,500) 14,973,400 3,915,200
Total assets 94,699,100 101,787,600 118,341,900 128,986,300 135,840,700
Profitability Ratio
ROA1 -5.57% -5.01% -3.49% 11.61% 2.88%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to shareholders (1,718,200) (2,255,300) (4,125,500) 14,973,400 3,915,200
Adjusted total assets 52,450,800 55,874,300 68,479,000 82,630,200 89,289,200
Profitability Ratio
Adjusted ROA2 -3.28% -4.04% -6.02% 18.12% 4.38%

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).

2019 Calculations

1 ROA = 100 × Net income (loss) attributable to shareholders ÷ Total assets
= 100 × -5,271,000 ÷ 94,699,100 = -5.57%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to shareholders ÷ Adjusted total assets
= 100 × -1,718,200 ÷ 52,450,800 = -3.28%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Allergan PLC adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.