Allergan plc Return On Equity vs. Current Ratio

AGN -- USA Stock  

USD 165.46  0.54  0.33%

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Allergan plc Current Ratio vs. Return On Equity Fundamental Analysis

Allergan plc is rated fifth in return on equity category among related companies. It is rated below average in current ratio category among related companies .
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how effecently a company utilizes investments to generate income.
Allergan plc 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
=
(12.97)%
For most industries Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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 
=
1.03X
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.

Allergan plc Fundamental Comparison

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