Allergan plc Beta vs. Current Ratio

AGN -- USA Stock  

USD 166.14  0.21  0.13%

The Drivers Module shows relationships between Allergan plc's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Allergan plc over time as well as its relative position and ranking within its peers. Check also Trending Equities

Allergan plc Current Ratio vs. Beta Fundamental Analysis

Allergan plc is rated second in beta category among related companies. It is rated below average in current ratio category among related companies fabricating about  0.54  of Current Ratio per Beta. The ratio of Beta to Current Ratio for Allergan plc is roughly  1.86 
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of financial instrument to the financial market in which this instrument is traded. For example if Beta of equity is 2, it will be expected to significantly outperform market when market is going up and significantly underperform when market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns during over time.
Allergan plc 
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Allergan plc 
Current Ratio 
Current Asset 
Current Liabilities 
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e. Current Ration of 2 to 1).

Allergan plc Current Ratio Comparison

  Current Ratio 
      Allergan plc Comparables 
Allergan plc is currently under evaluation in current ratio category among related companies.

Beta Analysis

As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Allergan plc will likely underperform.

Allergan plc Fundamental Comparison