Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Allergan PLC, solvency 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Allergan PLC debt to equity ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Allergan PLC debt to equity ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Allergan PLC debt to capital ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Allergan PLC debt to capital ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Allergan PLC debt to assets ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Allergan PLC debt to assets ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Allergan PLC financial leverage ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Allergan PLC interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Allergan PLC fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019. |
Debt to Equity
Allergan PLC, debt to equity 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 portion of long-term debt and capital leases | 4,532,500) | 868,300) | 4,231,800) | 2,797,900) | 2,432,800) | |
| Long-term debt and capital leases, excluding current portion | 18,116,500) | 22,929,400) | 25,843,500) | 29,970,800) | 40,293,400) | |
| Total debt | 22,649,000) | 23,797,700) | 30,075,300) | 32,768,700) | 42,726,200) | |
| Shareholders’ equity | 58,173,600) | 65,114,100) | 73,821,100) | 76,192,700) | 76,591,400) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.39 | 0.37 | 0.41 | 0.43 | 0.56 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | 3.09 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 0.91 | — | — | — | — | |
| Danaher Corp. | 0.72 | — | — | — | — | |
| Eli Lilly & Co. | 5.88 | — | — | — | — | |
| Gilead Sciences Inc. | 1.09 | — | — | — | — | |
| Johnson & Johnson | 0.47 | — | — | — | — | |
| Merck & Co. Inc. | 1.02 | — | — | — | — | |
| Pfizer Inc. | 0.83 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.06 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.60 | — | — | — | — | |
| Debt to Equity, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.11 | — | — | — | — | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.91 | — | — | — | — | |
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
Debt to equity = Total debt ÷ Shareholders’ equity
= 22,649,000 ÷ 58,173,600 = 0.39
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Allergan PLC debt to equity ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Debt to Equity (including Operating Lease Liability)
Allergan PLC, debt to equity (including operating lease liability) 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 portion of long-term debt and capital leases | 4,532,500) | 868,300) | 4,231,800) | 2,797,900) | 2,432,800) | |
| Long-term debt and capital leases, excluding current portion | 18,116,500) | 22,929,400) | 25,843,500) | 29,970,800) | 40,293,400) | |
| Total debt | 22,649,000) | 23,797,700) | 30,075,300) | 32,768,700) | 42,726,200) | |
| Current portion of lease liability, operating | 124,400) | —) | —) | —) | —) | |
| Lease liability, operating, excluding current portion | 446,100) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 23,219,500) | 23,797,700) | 30,075,300) | 32,768,700) | 42,726,200) | |
| Shareholders’ equity | 58,173,600) | 65,114,100) | 73,821,100) | 76,192,700) | 76,591,400) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.40 | 0.37 | 0.41 | 0.43 | 0.56 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | 3.15 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 0.92 | — | — | — | — | |
| Danaher Corp. | 0.74 | — | — | — | — | |
| Eli Lilly & Co. | 6.11 | — | — | — | — | |
| Gilead Sciences Inc. | 1.12 | — | — | — | — | |
| Johnson & Johnson | 0.48 | — | — | — | — | |
| Merck & Co. Inc. | 1.06 | — | — | — | — | |
| Pfizer Inc. | 0.85 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.07 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.62 | — | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.13 | — | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.97 | — | — | — | — | |
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).
1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 23,219,500 ÷ 58,173,600 = 0.40
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Allergan PLC debt to equity ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Debt to Capital
Allergan PLC, debt to capital 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 portion of long-term debt and capital leases | 4,532,500) | 868,300) | 4,231,800) | 2,797,900) | 2,432,800) | |
| Long-term debt and capital leases, excluding current portion | 18,116,500) | 22,929,400) | 25,843,500) | 29,970,800) | 40,293,400) | |
| Total debt | 22,649,000) | 23,797,700) | 30,075,300) | 32,768,700) | 42,726,200) | |
| Shareholders’ equity | 58,173,600) | 65,114,100) | 73,821,100) | 76,192,700) | 76,591,400) | |
| Total capital | 80,822,600) | 88,911,800) | 103,896,400) | 108,961,400) | 119,317,600) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.28 | 0.27 | 0.29 | 0.30 | 0.36 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | 1.14 | — | — | — | — | |
| Amgen Inc. | 0.76 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 0.48 | — | — | — | — | |
| Danaher Corp. | 0.42 | — | — | — | — | |
| Eli Lilly & Co. | 0.85 | — | — | — | — | |
| Gilead Sciences Inc. | 0.52 | — | — | — | — | |
| Johnson & Johnson | 0.32 | — | — | — | — | |
| Merck & Co. Inc. | 0.50 | — | — | — | — | |
| Pfizer Inc. | 0.45 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.06 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.37 | — | — | — | — | |
| Debt to Capital, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.53 | — | — | — | — | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.48 | — | — | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 22,649,000 ÷ 80,822,600 = 0.28
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Allergan PLC debt to capital ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Debt to Capital (including Operating Lease Liability)
Allergan PLC, debt to capital (including operating lease liability) 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 portion of long-term debt and capital leases | 4,532,500) | 868,300) | 4,231,800) | 2,797,900) | 2,432,800) | |
| Long-term debt and capital leases, excluding current portion | 18,116,500) | 22,929,400) | 25,843,500) | 29,970,800) | 40,293,400) | |
| Total debt | 22,649,000) | 23,797,700) | 30,075,300) | 32,768,700) | 42,726,200) | |
| Current portion of lease liability, operating | 124,400) | —) | —) | —) | —) | |
| Lease liability, operating, excluding current portion | 446,100) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 23,219,500) | 23,797,700) | 30,075,300) | 32,768,700) | 42,726,200) | |
| Shareholders’ equity | 58,173,600) | 65,114,100) | 73,821,100) | 76,192,700) | 76,591,400) | |
| Total capital (including operating lease liability) | 81,393,100) | 88,911,800) | 103,896,400) | 108,961,400) | 119,317,600) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.29 | 0.27 | 0.29 | 0.30 | 0.36 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 1.14 | — | — | — | — | |
| Amgen Inc. | 0.76 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 0.48 | — | — | — | — | |
| Danaher Corp. | 0.43 | — | — | — | — | |
| Eli Lilly & Co. | 0.86 | — | — | — | — | |
| Gilead Sciences Inc. | 0.53 | — | — | — | — | |
| Johnson & Johnson | 0.33 | — | — | — | — | |
| Merck & Co. Inc. | 0.51 | — | — | — | — | |
| Pfizer Inc. | 0.46 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.07 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.38 | — | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.53 | — | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.49 | — | — | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 23,219,500 ÷ 81,393,100 = 0.29
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Allergan PLC debt to capital ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Debt to Assets
Allergan PLC, debt to assets 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 portion of long-term debt and capital leases | 4,532,500) | 868,300) | 4,231,800) | 2,797,900) | 2,432,800) | |
| Long-term debt and capital leases, excluding current portion | 18,116,500) | 22,929,400) | 25,843,500) | 29,970,800) | 40,293,400) | |
| Total debt | 22,649,000) | 23,797,700) | 30,075,300) | 32,768,700) | 42,726,200) | |
| Total assets | 94,699,100) | 101,787,600) | 118,341,900) | 128,986,300) | 135,840,700) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.24 | 0.23 | 0.25 | 0.25 | 0.31 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | 0.75 | — | — | — | — | |
| Amgen Inc. | 0.50 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 0.36 | — | — | — | — | |
| Danaher Corp. | 0.35 | — | — | — | — | |
| Eli Lilly & Co. | 0.39 | — | — | — | — | |
| Gilead Sciences Inc. | 0.40 | — | — | — | — | |
| Johnson & Johnson | 0.18 | — | — | — | — | |
| Merck & Co. Inc. | 0.31 | — | — | — | — | |
| Pfizer Inc. | 0.31 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.05 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.30 | — | — | — | — | |
| Debt to Assets, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.36 | — | — | — | — | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.31 | — | — | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 22,649,000 ÷ 94,699,100 = 0.24
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Allergan PLC debt to assets ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Debt to Assets (including Operating Lease Liability)
Allergan PLC, debt to assets (including operating lease liability) 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 portion of long-term debt and capital leases | 4,532,500) | 868,300) | 4,231,800) | 2,797,900) | 2,432,800) | |
| Long-term debt and capital leases, excluding current portion | 18,116,500) | 22,929,400) | 25,843,500) | 29,970,800) | 40,293,400) | |
| Total debt | 22,649,000) | 23,797,700) | 30,075,300) | 32,768,700) | 42,726,200) | |
| Current portion of lease liability, operating | 124,400) | —) | —) | —) | —) | |
| Lease liability, operating, excluding current portion | 446,100) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 23,219,500) | 23,797,700) | 30,075,300) | 32,768,700) | 42,726,200) | |
| Total assets | 94,699,100) | 101,787,600) | 118,341,900) | 128,986,300) | 135,840,700) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.25 | 0.23 | 0.25 | 0.25 | 0.31 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.75 | — | — | — | — | |
| Amgen Inc. | 0.51 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 0.37 | — | — | — | — | |
| Danaher Corp. | 0.36 | — | — | — | — | |
| Eli Lilly & Co. | 0.41 | — | — | — | — | |
| Gilead Sciences Inc. | 0.41 | — | — | — | — | |
| Johnson & Johnson | 0.18 | — | — | — | — | |
| Merck & Co. Inc. | 0.32 | — | — | — | — | |
| Pfizer Inc. | 0.32 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.05 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.32 | — | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.37 | — | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.33 | — | — | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 23,219,500 ÷ 94,699,100 = 0.25
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Allergan PLC debt to assets ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Financial Leverage
Allergan PLC, financial leverage 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) | ||||||
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | 6.17 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 2.52 | — | — | — | — | |
| Danaher Corp. | 2.05 | — | — | — | — | |
| Eli Lilly & Co. | 15.07 | — | — | — | — | |
| Gilead Sciences Inc. | 2.74 | — | — | — | — | |
| Johnson & Johnson | 2.65 | — | — | — | — | |
| Merck & Co. Inc. | 3.26 | — | — | — | — | |
| Pfizer Inc. | 2.65 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 1.34 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 1.97 | — | — | — | — | |
| Financial Leverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 3.10 | — | — | — | — | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.93 | — | — | — | — | |
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
Financial leverage = Total assets ÷ Shareholders’ equity
= 94,699,100 ÷ 58,173,600 = 1.63
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Allergan PLC financial leverage ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level. |
Interest Coverage
Allergan PLC, interest coverage 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 income (loss) attributable to shareholders | (5,271,000) | (5,096,400) | (4,125,500) | 14,973,400) | 3,915,200) | |
| Add: Net income attributable to noncontrolling interest | 5,900) | 10,200) | 6,600) | 6,100) | 4,200) | |
| Less: Income (loss) from discontinued operations, net of tax | —) | —) | (402,900) | 15,914,500) | 6,787,700) | |
| Add: Income tax expense | 146,400) | (1,770,700) | (6,670,400) | (1,897,000) | (1,561,900) | |
| Add: Interest expense | 783,000) | 911,200) | 1,095,600) | 1,295,600) | 1,193,300) | |
| Earnings before interest and tax (EBIT) | (4,335,700) | (5,945,700) | (9,290,800) | (1,536,400) | (3,236,900) | |
| Solvency Ratio | ||||||
| Interest coverage1 | -5.54 | -6.53 | -8.48 | -1.19 | -2.71 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | 5.72 | — | — | — | — | |
| Amgen Inc. | 8.09 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 8.58 | — | — | — | — | |
| Danaher Corp. | 31.44 | — | — | — | — | |
| Eli Lilly & Co. | 14.15 | — | — | — | — | |
| Gilead Sciences Inc. | 6.19 | — | — | — | — | |
| Johnson & Johnson | 55.49 | — | — | — | — | |
| Merck & Co. Inc. | 13.84 | — | — | — | — | |
| Pfizer Inc. | 12.23 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 81.43 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 7.02 | — | — | — | — | |
| Interest Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 11.23 | — | — | — | — | |
| Interest Coverage, Industry | ||||||
| Health Care | 8.87 | — | — | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= -4,335,700 ÷ 783,000 = -5.54
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Allergan PLC interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019. |
Fixed Charge Coverage
Allergan PLC, fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Statutory tax rate | 12.50% | 12.50% | 12.50% | 12.50% | 12.50% | |
| 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) | |
| Add: Net income attributable to noncontrolling interest | 5,900) | 10,200) | 6,600) | 6,100) | 4,200) | |
| Less: Income (loss) from discontinued operations, net of tax | —) | —) | (402,900) | 15,914,500) | 6,787,700) | |
| Add: Income tax expense | 146,400) | (1,770,700) | (6,670,400) | (1,897,000) | (1,561,900) | |
| Add: Interest expense | 783,000) | 911,200) | 1,095,600) | 1,295,600) | 1,193,300) | |
| Earnings before interest and tax (EBIT) | (4,335,700) | (5,945,700) | (9,290,800) | (1,536,400) | (3,236,900) | |
| Add: Operating lease expense | 151,300) | 63,200) | 72,000) | 47,700) | 49,900) | |
| Earnings before fixed charges and tax | (4,184,400) | (5,882,500) | (9,218,800) | (1,488,700) | (3,187,000) | |
| Interest expense | 783,000) | 911,200) | 1,095,600) | 1,295,600) | 1,193,300) | |
| Operating lease expense | 151,300) | 63,200) | 72,000) | 47,700) | 49,900) | |
| Dividends on preferred shares | —) | 46,400) | 278,400) | 278,400) | 232,000) | |
| Dividends on preferred shares, tax adjustment1 | —) | 6,629) | 39,771) | 39,771) | 33,143) | |
| Dividends on preferred shares, after tax adjustment | —) | 53,029) | 318,171) | 318,171) | 265,143) | |
| Fixed charges | 934,300) | 1,027,429) | 1,485,771) | 1,661,471) | 1,508,343) | |
| Solvency Ratio | ||||||
| Fixed charge coverage2 | -4.48 | -5.73 | -6.20 | -0.90 | -2.11 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors3 | ||||||
| AbbVie Inc. | 5.42 | — | — | — | — | |
| Amgen Inc. | 7.12 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 7.10 | — | — | — | — | |
| Danaher Corp. | 8.38 | — | — | — | — | |
| Eli Lilly & Co. | 10.18 | — | — | — | — | |
| Gilead Sciences Inc. | 5.46 | — | — | — | — | |
| Johnson & Johnson | 28.72 | — | — | — | — | |
| Merck & Co. Inc. | 10.31 | — | — | — | — | |
| Pfizer Inc. | 9.88 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 60.98 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 5.61 | — | — | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 8.99 | — | — | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 6.61 | — | — | — | — | |
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
Dividends on preferred shares, tax adjustment = (Dividends on preferred shares × Statutory tax rate) ÷ (1 − Statutory tax rate)
= (0 × 12.50%) ÷ (1 − 12.50%) = 0
2 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= -4,184,400 ÷ 934,300 = -4.48
3 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Allergan PLC fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019. |