Asset structure analysis
Teva pharmaceutical ‘s total assets were $43.5 billion and $44 billion at December 31, 2023 and at December 31, 2022, respectively.
Goodwill was $17.2 billion as of December 31, 2023, accounting for 39.5% of total assets.
We think that goodwill is cost.
Property, plant and equipment, net were $5.75 billion as of December 31, 2023, comprising 13.2% of total assets.
Identifiable intangible assets, net were $5.4 billion as of December 31, 2023, making up 12.4% of total assets.
Total current assets were $12.5 billion as of December 31, 2023, consisting of 28.7% of total assets.
Cash and cash equivalents were $3.2 billion as of December 31, 2023, accounting for 7.4% of total assets.
Accounts receivable, net were $3.4 billion as of December 31, 2023, comprising 7.8% of total assets.
Inventories were $4 billion as of December 31, 2023, consisting of 9.2% of total assets.
Liquidity and solvency analysis
Total current liabilities were $12.25 billion as of December 31, 2023.
The current ratio was 1.02 times for 2023.
Total liabilities were $35.35 billion as of December 31, 2023.
The debt ratio was 81.3% for 2023.
Asset manage efficiency
The accounts receivable turnover ratio was about 4.5 times in 2023, and the days sales outstanding was about 81 days in 2023.
The inventory turnover ratio was about 2.1 times in 2023, and the days sales of inventory was 173.8 days in 2023.
The accounts payable turnover ratio was about 3.6 times in 2023, and the days payable outstanding was 101.4 days in 2023.
The cash conversion cycle was 153.4 days in 2023.
Profitability analysis
Teva pharmaceutical ‘s total revenues were $15.85 billion, $15 billion and $15.88 billion in 2023, 2022 and 2021, respectively.
The total revenues in 2023 were up 5.7% year-on-year.
The total revenues in 2022 were down 5.5% year-on-year.
Operating income was $433 million, -$2.2 billion and $1.7 billion in 2023, 2022 and 2021, respectively.
Financial expenses, net were $1.06 billion, $966 million and $1.06 billion in 2023, 2022 and 2021, respectively.
Cash flow analysis
Net cash provided by operating activities was $1.37 billion, $1.6 billion and $800 million in 2023, 2022 and 2021, respectively.
Purchases of property, plant and equipment and intangible assets were $526 million, $548 million and $562 million in 2023, 2022 and 2021, respectively.
Free cash flow was $844 million, $1.05 billion and $238 million in 2023, 2022 and 2021, respectively.
Conclusion
Teva pharmaceutical’s debt pressure is very great.
Too many acquisitions generated net income or cash flow that is not enough to cover debt. If the company had generated $ 5 billion in cash flow each year, the debt pressure would have been very minimal.
Capital expenditure is essential, and the amount of repaying debt is very small relative its long-term debt.
The company’s stock price is $12.86 per share, which equivalent to $14.57 billion in market capitalization.
We reckon that Teva pharmaceutical is worth $0.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
We are a global pharmaceutical company, committed to helping patients around the world to access affordable medicines and benefit from innovations to improve their health. Our mission is to be a global leader in generics, innovative medicines and biopharmaceuticals, improving the lives of patients.
We operate worldwide, with headquarters in Israel and a significant presence in the United States, Europe and many other markets around the world. Our key strengths include our world-leading generic medicines expertise and portfolio, focused innovative medicines portfolio and global infrastructure and scale.
Teva was incorporated in Israel on February 13, 1944 and is the successor to a number of Israeli corporations, the oldest of which was established in 1901.
