Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Allergan PLC, profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Allergan PLC gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Allergan PLC operating profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Allergan PLC net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Allergan PLC ROE deteriorated from 2017 to 2018 and from 2018 to 2019. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Allergan PLC ROA deteriorated from 2017 to 2018 and from 2018 to 2019. |
Gross Profit Margin
Allergan PLC, gross profit margin 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) | ||||||
| Gross profit | 13,595,800) | 13,596,000) | 13,772,700) | 12,709,800) | 10,260,600) | |
| Net revenues | 16,088,900) | 15,787,400) | 15,940,700) | 14,570,600) | 15,071,000) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 84.50% | 86.12% | 86.40% | 87.23% | 68.08% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 77.64% | — | — | — | — | |
| Amgen Inc. | 80.38% | — | — | — | — | |
| Bristol-Myers Squibb Co. | 69.10% | — | — | — | — | |
| Danaher Corp. | 55.74% | — | — | — | — | |
| Eli Lilly & Co. | 78.85% | — | — | — | — | |
| Gilead Sciences Inc. | 78.86% | — | — | — | — | |
| Johnson & Johnson | 66.42% | — | — | — | — | |
| Merck & Co. Inc. | 69.87% | — | — | — | — | |
| Moderna Inc. | — | — | — | — | — | |
| Pfizer Inc. | 80.25% | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 90.05% | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 44.35% | — | — | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Net revenues
= 100 × 13,595,800 ÷ 16,088,900 = 84.50%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Allergan PLC gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Operating Profit Margin
Allergan PLC, operating profit margin 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) | ||||||
| Operating loss | (4,445,300) | (6,247,600) | (5,921,200) | (1,825,500) | (3,014,500) | |
| Net revenues | 16,088,900) | 15,787,400) | 15,940,700) | 14,570,600) | 15,071,000) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | -27.63% | -39.57% | -37.15% | -12.53% | -20.00% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 39.03% | — | — | — | — | |
| Amgen Inc. | 43.57% | — | — | — | — | |
| Bristol-Myers Squibb Co. | 22.62% | — | — | — | — | |
| Danaher Corp. | 18.25% | — | — | — | — | |
| Eli Lilly & Co. | 22.29% | — | — | — | — | |
| Gilead Sciences Inc. | 19.38% | — | — | — | — | |
| Johnson & Johnson | 24.15% | — | — | — | — | |
| Merck & Co. Inc. | 24.77% | — | — | — | — | |
| Moderna Inc. | — | — | — | — | — | |
| Pfizer Inc. | 25.46% | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 28.10% | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 17.99% | — | — | — | — | |
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 25.68% | — | — | — | — | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 12.31% | — | — | — | — | |
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
Operating profit margin = 100 × Operating loss ÷ Net revenues
= 100 × -4,445,300 ÷ 16,088,900 = -27.63%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Allergan PLC operating profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Net Profit Margin
Allergan PLC, net profit margin 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) | |
| 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 23.69% | — | — | — | — | |
| Amgen Inc. | 35.32% | — | — | — | — | |
| Bristol-Myers Squibb Co. | 13.15% | — | — | — | — | |
| Danaher Corp. | 16.80% | — | — | — | — | |
| Eli Lilly & Co. | 37.27% | — | — | — | — | |
| Gilead Sciences Inc. | 24.35% | — | — | — | — | |
| Johnson & Johnson | 18.42% | — | — | — | — | |
| Merck & Co. Inc. | 21.01% | — | — | — | — | |
| Moderna Inc. | — | — | — | — | — | |
| Pfizer Inc. | 31.45% | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 26.91% | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 14.47% | — | — | — | — | |
| Net Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 23.02% | — | — | — | — | |
| Net Profit Margin, Industry | ||||||
| Health Care | 10.09% | — | — | — | — | |
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
Net profit margin = 100 × Net income (loss) attributable to shareholders ÷ Net revenues
= 100 × -5,271,000 ÷ 16,088,900 = -32.76%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Allergan PLC net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Return on Equity (ROE)
Allergan PLC, ROE 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) | |
| 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | 81.07% | — | — | — | — | |
| Bristol-Myers Squibb Co. | 6.66% | — | — | — | — | |
| Danaher Corp. | 9.94% | — | — | — | — | |
| Eli Lilly & Co. | 319.09% | — | — | — | — | |
| Gilead Sciences Inc. | 23.91% | — | — | — | — | |
| Johnson & Johnson | 25.42% | — | — | — | — | |
| Merck & Co. Inc. | 37.99% | — | — | — | — | |
| Moderna Inc. | -43.75% | — | — | — | — | |
| Pfizer Inc. | 25.77% | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 19.08% | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 12.45% | — | — | — | — | |
| ROE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 27.56% | — | — | — | — | |
| ROE, Industry | ||||||
| Health Care | 20.90% | — | — | — | — | |
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
ROE = 100 × Net income (loss) attributable to shareholders ÷ Shareholders’ equity
= 100 × -5,271,000 ÷ 58,173,600 = -9.06%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Allergan PLC ROE deteriorated from 2017 to 2018 and from 2018 to 2019. |
Return on Assets (ROA)
Allergan PLC, ROA 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) | |
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| AbbVie Inc. | 8.84% | — | — | — | — | |
| Amgen Inc. | 13.13% | — | — | — | — | |
| Bristol-Myers Squibb Co. | 2.65% | — | — | — | — | |
| Danaher Corp. | 4.85% | — | — | — | — | |
| Eli Lilly & Co. | 21.17% | — | — | — | — | |
| Gilead Sciences Inc. | 8.74% | — | — | — | — | |
| Johnson & Johnson | 9.59% | — | — | — | — | |
| Merck & Co. Inc. | 11.66% | — | — | — | — | |
| Moderna Inc. | -32.34% | — | — | — | — | |
| Pfizer Inc. | 9.72% | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 14.29% | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 6.33% | — | — | — | — | |
| ROA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 8.90% | — | — | — | — | |
| ROA, Industry | ||||||
| Health Care | 7.15% | — | — | — | — | |
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
ROA = 100 × Net income (loss) attributable to shareholders ÷ Total assets
= 100 × -5,271,000 ÷ 94,699,100 = -5.57%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Allergan PLC ROA deteriorated from 2017 to 2018 and from 2018 to 2019. |