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Allergan (FRA:AG4) Total Inventories : €240 Mil (As of Dec. 2014)


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What is Allergan Total Inventories?

Allergan's total inventories for the quarter that ended in Dec. 2014 was €240 Mil. Allergan's average total inventories from the quarter that ended in Sep. 2014 to the quarter that ended in Dec. 2014 was €236 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Allergan's Net-Net Working Capital per share for the quarter that ended in Dec. 2014 was €3.08.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Allergan's Days Inventory for the three months ended in Dec. 2014 was 126.74.

Inventory Turnover measures how fast the company turns over its inventory within a year. Allergan's Inventory Turnover for the quarter that ended in Dec. 2014 was 0.72.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Allergan's Inventory-to-Revenue for the quarter that ended in Dec. 2014 was 0.15.


Allergan Total Inventories Historical Data

The historical data trend for Allergan's Total Inventories can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Allergan Total Inventories Chart

Allergan Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Total Inventories
Get a 7-Day Free Trial Premium Member Only Premium Member Only 173.43 189.77 207.49 208.27 240.06

Allergan Quarterly Data
Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14
Total Inventories Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 208.27 214.44 220.73 231.02 240.06

Allergan Total Inventories Calculation

Total Inventories includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company's current assets.


Allergan  (FRA:AG4) Total Inventories Explanation

Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers' required delivery time. If it has too much inventory, the cost of holding the inventory can be high.

1. In Ben Graham's calculation of Net-Net Working Capital (NNWC), inventory is only considered worth half of its book value.

Allergan's Net-Net Working Capital Per Share for the quarter that ended in Dec. 2014 is

Net-Net Working Capital Per Share (Q: Dec. 2014 )
=(Cash And Cash Equivalents+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(4027.75+0.75 * 741.659+0.5 * 240.056-3773.34
-0-8.11)/299.233
=3.08

2. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Allergan's Days Inventory for the three months ended in Dec. 2014 is calculated as:

Days Inventory=Average Total Inventories (Q: Dec. 2014 )/Cost of Goods Sold (Q: Dec. 2014 )*Days in Period
=235.5355/169.58*365 / 4
=126.74

3. Inventory Turnover measures how fast the company turns over its inventory within a year.

Allergan's Inventory Turnover for the quarter that ended in Dec. 2014 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Dec. 2014 ) / Average Total Inventories (Q: Dec. 2014 )
=169.58 / 235.5355
=0.72

4. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Allergan's Inventory to Revenue for the quarter that ended in Dec. 2014 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=235.5355 / 1549.415
=0.15

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.

When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.

Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.


Allergan Total Inventories Related Terms

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Allergan (FRA:AG4) Business Description

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Allergan Inc incorporated in Delaware in 1977. It is a multi-specialty health care company. The Company is engaged in the developing and commercializing pharmaceuticals, biologics, medical devices and over-the-counter products that enable people to live life to its full potential - to see more clearly, move more freely and express themselves more fully. It offers products for the ophthalmic, neurological, medical aesthetics, medical dermatology, breast aesthetics, urological and other specialty markets in more than 100 countries around the world. It is also engaged in specialty pharmaceutical, biologic and medical device research and development. The Company's business segments are specialty pharmaceuticals and medical devices. The specialty pharmaceuticals segment produces pharmaceutical products, including: ophthalmic products for dry eye, glaucoma, inflammation, infection, allergy and retinal disease; Botox for certain therapeutic and aesthetic indications; skin care products for acne, psoriasis, eyelash growth and other prescription and over-the-counter skin care products; and urologics products. The medical devices segment produces medical devices, including: breast implants for augmentation, revision and reconstructive surgery and tissue expanders; and facial aesthetics products. The Company sells its products directly through its own sales subsidiaries in approximately 40 countries and, supplemented by independent distributors, in over 100 countries. Its products are sold to drug wholesalers, independent and chain drug stores, pharmacies, commercial optical chains, opticians, mass merchandisers, food stores, hospitals, group purchasing organizations, integrated direct hospital networks, ambulatory surgery centers, government purchasing agencies and medical practitioners. The Company also utilize distributors for its products in smaller international markets. The Company's competitors include Akorn, Inc., Alcon Laboratories, Inc./Novartis AG, Abbott Laboratories, Alimera Sciences, Inc., Bausch & Lomb, Inc., a division of Valeant, Genentech/Hoffmann La Roche AG, Merck & Co., Pfizer Inc., Regeneron Pharmaceuticals, Inc. and Santen Seiyaku. Mentor and Sientra, Inc., or Sientra, a partner of Silimed, LifeCell Corporation, CR Bard Inc. The Company's operations are subject to federal, state, local and foreign environmental laws and regulations, including the U.S. Occupational Safety and Health Act, the U.S. Toxic Substances Control Act, the U.S. Resource Conservation and Recovery Act, Superfund Amendments and Reauthorization Act, Comprehensive Environmental Response, Compensation and Liability Act and other current and potential future federal, state or local regulations.

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