Alcon Inc Financials
Financial Health Signals
Based on FY2010 annual data. Scores normalized against common benchmarks. How we calculate these scores
Alcon Inc has an operating margin of 34.5%, meaning the company retains $34 of operating profit per $100 of revenue. This strong profitability earns a score of 100/100, reflecting efficient cost management and pricing power. This is down from 34.8% the prior year.
Alcon Inc's revenue grew 10.5% year-over-year to $7.2B, a solid pace of expansion. This earns a growth score of 58/100.
Alcon Inc carries a low D/E ratio of 0.00, meaning only $0.00 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 3.39, Alcon Inc holds $3.39 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.
Alcon Inc converts 28.8% of revenue into free cash flow ($2.1B). This strong cash generation earns a score of 100/100.
Alcon Inc earns a strong 30.5% return on equity (ROE), meaning it generates $30 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is down from 34.0% the prior year.
Alcon Inc scores 11.10, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($38.9B) relative to total liabilities ($2.8B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Alcon Inc passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Alcon Inc generates $1.07 in operating cash flow ($2.4B OCF vs $2.2B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Alcon Inc earns $275.0 in operating income for every $1 of interest expense ($2.5B vs $9.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
This page shows Alcon Inc (ALC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 4 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Alcon Inc generated $7.2B in revenue in fiscal year 2010. This represents an increase of 10.5% from the prior year.
Alcon Inc's EBITDA was $2.7B in fiscal year 2010, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 10.8% from the prior year.
Alcon Inc generated $2.1B in free cash flow in fiscal year 2010, representing cash available after capex. This represents a decrease of 0.4% from the prior year.
Alcon Inc reported $2.2B in net income in fiscal year 2010. This represents an increase of 10.1% from the prior year.
Alcon Inc earned $7.27 per diluted share (EPS) in fiscal year 2010. This represents an increase of 9.2% from the prior year.
Alcon Inc held $2.5B in cash against $0 in long-term debt as of fiscal year 2010.
Alcon Inc had 302M shares outstanding in fiscal year 2010. This represents an increase of 0.9% from the prior year.
Alcon Inc's gross margin was 76.7% in fiscal year 2010, indicating the percentage of revenue retained after direct costs. This is up 1.5 percentage points from the prior year.
Alcon Inc's operating margin was 34.5% in fiscal year 2010, reflecting core business profitability. This is down 0.3 percentage points from the prior year.
Alcon Inc's net profit margin was 30.8% in fiscal year 2010, showing the share of revenue converted to profit. This is down 0.1 percentage points from the prior year.
Alcon Inc's ROE was 30.5% in fiscal year 2010, measuring profit generated per dollar of shareholder equity. This is down 3.5 percentage points from the prior year.
Alcon Inc invested $747.0M in research and development in fiscal year 2010. This represents an increase of 12.3% from the prior year.
Alcon Inc spent $33.0M on share buybacks in fiscal year 2010, returning capital to shareholders by reducing shares outstanding. This represents an increase of 371.4% from the prior year.
Alcon Inc invested $309.0M in capex in fiscal year 2010, funding long-term assets and infrastructure. This represents a decrease of 9.6% from the prior year.
ALC Income Statement
| Metric | Q4'10 | Q3'10 | Q2'10 | Q1'10 | Q4'09 | Q3'09 | Q2'09 | Q1'09 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.8B+3.0% | $1.8B-6.7% | $1.9B+9.6% | $1.7B+0.3% | $1.7B+6.3% | $1.6B-3.8% | $1.7B+12.3% | $1.5B |
| Cost of Revenue | $435.0M+3.1% | $422.0M-0.9% | $426.0M+8.7% | $392.0M-12.1% | $446.0M+11.8% | $399.0M-3.9% | $415.0M+17.2% | $354.0M |
| Gross Profit | $1.4B+2.9% | $1.3B-8.4% | $1.5B+9.9% | $1.3B+4.7% | $1.3B+4.4% | $1.2B-3.7% | $1.3B+10.8% | $1.1B |
| R&D Expenses | $210.0M+14.1% | $184.0M0.0% | $184.0M+8.9% | $169.0M-17.2% | $204.0M+29.1% | $158.0M+0.6% | $157.0M+7.5% | $146.0M |
| SG&A Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Income | $576.0M+16.4% | $495.0M-34.1% | $751.0M+15.0% | $653.0M+21.6% | $537.0M-7.1% | $578.0M-8.5% | $632.0M+23.0% | $514.0M |
| Interest Expense | $16.0M+900.0% | -$2.0M0.0% | -$2.0M+33.3% | -$3.0M-110.3% | $29.0M+1066.7% | -$3.0M+40.0% | -$5.0M0.0% | -$5.0M |
| Income Tax | $60.0M+7.1% | $56.0M-42.9% | $98.0M-4.9% | $103.0M+7.3% | $96.0M+21.5% | $79.0M+14.5% | $69.0M+11.3% | $62.0M |
| Net Income | $521.0M+16.8% | $446.0M-33.4% | $670.0M+16.9% | $573.0M+25.1% | $458.0M-11.1% | $515.0M-11.5% | $582.0M+28.8% | $452.0M |
| EPS (Diluted) | $1.71+16.3% | $1.47-33.5% | $2.21+16.9% | $1.89+25.2% | $1.51-11.7% | $1.71-11.9% | $1.94+28.5% | $1.51 |
ALC Balance Sheet
| Metric | Q4'10 | Q3'10 | Q2'10 | Q1'10 | Q4'09 | Q3'09 | Q2'09 | Q1'09 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $10.1B+6.5% | $9.5B+10.0% | $8.6B-6.7% | $9.2B+6.1% | $8.7B+6.5% | $8.2B+8.5% | $7.5B | N/A |
| Current Assets | $6.1B+8.3% | $5.6B+5.0% | $5.3B-12.9% | $6.1B+5.1% | $5.8B+10.6% | $5.3B+5.2% | $5.0B | N/A |
| Cash & Equivalents | $2.5B+15.0% | $2.2B-4.3% | $2.3B-26.7% | $3.1B+4.1% | $3.0B+19.4% | $2.5B+11.5% | $2.3B-26.9% | $3.1B |
| Inventory | $693.0M+0.1% | $692.0M+16.1% | $596.0M-2.6% | $612.0M-2.2% | $626.0M-4.6% | $656.0M+4.8% | $626.0M | N/A |
| Accounts Receivable | $1.5B+0.7% | $1.5B+4.4% | $1.4B-3.1% | $1.5B+8.2% | $1.3B+1.1% | $1.3B+1.0% | $1.3B | N/A |
| Goodwill | $833.0M-0.1% | $834.0M+20.9% | $690.0M-1.4% | $700.0M+1.7% | $688.0M-0.3% | $690.0M+7.0% | $645.0M | N/A |
| Total Liabilities | $2.8B+3.3% | $2.7B+6.2% | $2.6B-6.4% | $2.7B-1.2% | $2.8B+0.9% | $2.8B+0.6% | $2.7B | N/A |
| Current Liabilities | $1.8B+3.0% | $1.7B-2.6% | $1.8B-8.6% | $2.0B-1.2% | $2.0B+1.2% | $2.0B-5.6% | $2.1B | N/A |
| Long-Term Debt | $0 | $0 | $0 | $0-100.0% | $56.0M-6.7% | $60.0M+5.3% | $57.0M | N/A |
| Total Equity | $7.3B+7.8% | $6.7B+11.6% | $6.0B-6.8% | $6.5B+9.5% | $5.9B+9.4% | $5.4B+13.0% | $4.8B | N/A |
| Retained Earnings | $5.7B+10.1% | $5.2B+9.4% | $4.7B-7.2% | $5.1B+12.6% | $4.5B+11.2% | $4.1B+10.6% | $3.7B | N/A |
ALC Cash Flow Statement
| Metric | Q4'10 | Q3'10 | Q2'10 | Q1'10 | Q4'09 | Q3'09 | Q2'09 | Q1'09 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $611.0M+34.6% | $454.0M-50.8% | $922.0M+137.6% | $388.0M-39.5% | $641.0M-2.9% | $660.0M-6.5% | $706.0M+72.6% | $409.0M |
| Capital Expenditures | $519.0M+863.2% | -$68.0M+6.8% | -$73.0M-5.8% | -$69.0M-112.1% | $568.0M+752.9% | -$87.0M0.0% | -$87.0M-67.3% | -$52.0M |
| Free Cash Flow | $92.0M-76.2% | $386.0M-54.5% | $849.0M+166.1% | $319.0M+337.0% | $73.0M-87.3% | $573.0M-7.4% | $619.0M+73.4% | $357.0M |
| Investing Cash Flow | -$356.0M+39.1% | -$585.0M-55.2% | -$377.0M+2.6% | -$387.0M-176.4% | -$140.0M+17.6% | -$170.0M+15.4% | -$201.0M-266.1% | $121.0M |
| Financing Cash Flow | $73.0M+231.8% | $22.0M+101.6% | -$1.4B-1180.3% | $127.0M+1007.1% | -$14.0M+94.1% | -$236.0M+82.5% | -$1.3B-1279.8% | $114.0M |
| Dividends Paid | $2.1B | $0 | N/A | N/A | $2.1B | $0 | N/A | N/A |
| Share Buybacks | $62.0M+464.7% | -$17.0M-466.7% | -$3.0M+66.7% | -$9.0M-175.0% | $12.0M | $0+100.0% | -$1.0M+75.0% | -$4.0M |
ALC Financial Ratios
| Metric | Q4'10 | Q3'10 | Q2'10 | Q1'10 | Q4'09 | Q3'09 | Q2'09 | Q1'09 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 76.0%-0.0pp | 76.0%-1.4pp | 77.4%+0.2pp | 77.2%+3.2pp | 74.0%-1.3pp | 75.3%+0.0pp | 75.3%-1.0pp | 76.3% |
| Operating Margin | 31.8%+3.7pp | 28.1%-11.7pp | 39.8%+1.9pp | 37.9%+6.6pp | 31.3%-4.5pp | 35.8%-1.9pp | 37.7%+3.3pp | 34.4% |
| Net Margin | 28.7%+3.4pp | 25.3%-10.2pp | 35.5%+2.2pp | 33.3%+6.6pp | 26.7%-5.2pp | 31.9%-2.8pp | 34.7%+4.4pp | 30.3% |
| Return on Equity | 7.2%+0.6pp | 6.6%-4.5pp | 11.1%+2.3pp | 8.9%+1.1pp | 7.8%-1.8pp | 9.5%-2.6pp | 12.2% | N/A |
| Return on Assets | 5.2%+0.5pp | 4.7%-3.1pp | 7.8%+1.6pp | 6.2%+1.0pp | 5.3%-1.1pp | 6.3%-1.4pp | 7.7% | N/A |
| Current Ratio | 3.39+0.2 | 3.22+0.2 | 2.99-0.2 | 3.14+0.2 | 2.95+0.3 | 2.70+0.3 | 2.43 | N/A |
| Debt-to-Equity | 0.000.0 | 0.000.0 | 0.000.0 | 0.000.0 | 0.010.0 | 0.010.0 | 0.01 | N/A |
| FCF Margin | 5.1%-16.8pp | 21.9%-23.1pp | 45.0%+26.5pp | 18.5%+14.3pp | 4.3%-31.2pp | 35.5%-1.4pp | 36.9%+13.0pp | 23.9% |
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Frequently Asked Questions
What is Alcon Inc's annual revenue?
Alcon Inc (ALC) reported $7.2B in total revenue for fiscal year 2010. This represents a 10.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Alcon Inc's revenue growing?
Alcon Inc (ALC) revenue grew by 10.5% year-over-year, from $6.5B to $7.2B in fiscal year 2010.
Is Alcon Inc profitable?
Yes, Alcon Inc (ALC) reported a net income of $2.2B in fiscal year 2010, with a net profit margin of 30.8%.
What is Alcon Inc's earnings per share (EPS)?
Alcon Inc (ALC) reported diluted earnings per share of $7.27 for fiscal year 2010. This represents a 9.2% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Alcon Inc's EBITDA?
Alcon Inc (ALC) had EBITDA of $2.7B in fiscal year 2010, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Alcon Inc have?
As of fiscal year 2010, Alcon Inc (ALC) had $2.5B in cash and equivalents against $0 in long-term debt.
What is Alcon Inc's gross margin?
Alcon Inc (ALC) had a gross margin of 76.7% in fiscal year 2010, indicating the percentage of revenue retained after direct costs of goods sold.
What is Alcon Inc's operating margin?
Alcon Inc (ALC) had an operating margin of 34.5% in fiscal year 2010, reflecting the profitability of core business operations before interest and taxes.
What is Alcon Inc's net profit margin?
Alcon Inc (ALC) had a net profit margin of 30.8% in fiscal year 2010, representing the share of revenue converted into profit after all expenses.
What is Alcon Inc's return on equity (ROE)?
Alcon Inc (ALC) has a return on equity of 30.5% for fiscal year 2010, measuring how efficiently the company generates profit from shareholder equity.
What is Alcon Inc's free cash flow?
Alcon Inc (ALC) generated $2.1B in free cash flow during fiscal year 2010. This represents a -0.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Alcon Inc's operating cash flow?
Alcon Inc (ALC) generated $2.4B in operating cash flow during fiscal year 2010, representing cash generated from core business activities.
What are Alcon Inc's total assets?
Alcon Inc (ALC) had $10.1B in total assets as of fiscal year 2010, including both current and long-term assets.
What are Alcon Inc's capital expenditures?
Alcon Inc (ALC) invested $309.0M in capital expenditures during fiscal year 2010, funding long-term assets and infrastructure.
How much does Alcon Inc spend on research and development?
Alcon Inc (ALC) invested $747.0M in research and development during fiscal year 2010.
Does Alcon Inc buy back shares?
Yes, Alcon Inc (ALC) spent $33.0M on share buybacks during fiscal year 2010, returning capital to shareholders by reducing shares outstanding.
How many shares does Alcon Inc have outstanding?
Alcon Inc (ALC) had 302M shares outstanding as of fiscal year 2010.
What is Alcon Inc's current ratio?
Alcon Inc (ALC) had a current ratio of 3.39 as of fiscal year 2010, which is generally considered healthy.
What is Alcon Inc's debt-to-equity ratio?
Alcon Inc (ALC) had a debt-to-equity ratio of 0.00 as of fiscal year 2010, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Alcon Inc's return on assets (ROA)?
Alcon Inc (ALC) had a return on assets of 21.9% for fiscal year 2010, measuring how efficiently the company uses its assets to generate profit.
What is Alcon Inc's Altman Z-Score?
Alcon Inc (ALC) has an Altman Z-Score of 11.10, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Alcon Inc's Piotroski F-Score?
Alcon Inc (ALC) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Alcon Inc's earnings high quality?
Alcon Inc (ALC) has an earnings quality ratio of 1.07x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Alcon Inc cover its interest payments?
Alcon Inc (ALC) has an interest coverage ratio of 275.0x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Alcon Inc?
Alcon Inc (ALC) scores 93 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.