Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).
Solvency ratio | Description | The company |
---|---|---|
Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Diageo PLC debt to equity ratio improved from 2012 to 2013 and from 2013 to 2014. |
Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Diageo PLC debt to capital ratio improved from 2012 to 2013 and from 2013 to 2014. |
Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Diageo PLC debt to assets ratio deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014. |
Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Diageo PLC financial leverage ratio decreased from 2012 to 2013 and from 2013 to 2014. |
Solvency ratio | Description | The company |
---|---|---|
Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Diageo PLC interest coverage ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
Debt to Equity
Jun 30, 2014 | Jun 30, 2013 | Jun 30, 2012 | Jun 30, 2011 | Jun 30, 2010 | Jun 30, 2009 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions, translated from GBP £) | |||||||
Borrowings due within one year and bank overdrafts | 2,662) | 3,079) | 2,000) | 2,248) | 903) | 1,439) | |
Borrowings due after one year | 12,900) | 13,644) | 12,033) | 10,485) | 12,586) | 12,425) | |
Total debt | 15,562) | 16,724) | 14,033) | 12,733) | 13,489) | 13,864) | |
Equity attributable to equity shareholders of the parent company | 11,523) | 11,661) | 9,088) | 8,149) | 6,167) | 5,208) | |
Solvency Ratio | |||||||
Debt to equity1 | 1.35 | 1.43 | 1.54 | 1.56 | 2.19 | 2.66 | |
Benchmarks | |||||||
Debt to Equity, Competitors2 | |||||||
Coca-Cola Co. | — | — | — | — | — | — | |
Mondelēz International Inc. | — | — | — | — | — | — | |
PepsiCo Inc. | — | — | — | — | — | — |
Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).
1 2014 Calculation
Debt to equity = Total debt ÷ Equity attributable to equity shareholders of the parent company
= 15,562 ÷ 11,523 = 1.35
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Diageo PLC debt to equity ratio improved from 2012 to 2013 and from 2013 to 2014. |
Debt to Capital
Jun 30, 2014 | Jun 30, 2013 | Jun 30, 2012 | Jun 30, 2011 | Jun 30, 2010 | Jun 30, 2009 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions, translated from GBP £) | |||||||
Borrowings due within one year and bank overdrafts | 2,662) | 3,079) | 2,000) | 2,248) | 903) | 1,439) | |
Borrowings due after one year | 12,900) | 13,644) | 12,033) | 10,485) | 12,586) | 12,425) | |
Total debt | 15,562) | 16,724) | 14,033) | 12,733) | 13,489) | 13,864) | |
Equity attributable to equity shareholders of the parent company | 11,523) | 11,661) | 9,088) | 8,149) | 6,167) | 5,208) | |
Total capital | 27,085) | 28,384) | 23,121) | 20,883) | 19,657) | 19,072) | |
Solvency Ratio | |||||||
Debt to capital1 | 0.57 | 0.59 | 0.61 | 0.61 | 0.69 | 0.73 | |
Benchmarks | |||||||
Debt to Capital, Competitors2 | |||||||
Coca-Cola Co. | — | — | — | — | — | — | |
Mondelēz International Inc. | — | — | — | — | — | — | |
PepsiCo Inc. | — | — | — | — | — | — |
Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).
1 2014 Calculation
Debt to capital = Total debt ÷ Total capital
= 15,562 ÷ 27,085 = 0.57
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Diageo PLC debt to capital ratio improved from 2012 to 2013 and from 2013 to 2014. |
Debt to Assets
Jun 30, 2014 | Jun 30, 2013 | Jun 30, 2012 | Jun 30, 2011 | Jun 30, 2010 | Jun 30, 2009 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions, translated from GBP £) | |||||||
Borrowings due within one year and bank overdrafts | 2,662) | 3,079) | 2,000) | 2,248) | 903) | 1,439) | |
Borrowings due after one year | 12,900) | 13,644) | 12,033) | 10,485) | 12,586) | 12,425) | |
Total debt | 15,562) | 16,724) | 14,033) | 12,733) | 13,489) | 13,864) | |
Total assets | 38,784) | 41,559) | 36,347) | 30,729) | 29,943) | 29,258) | |
Solvency Ratio | |||||||
Debt to assets1 | 0.40 | 0.40 | 0.39 | 0.41 | 0.45 | 0.47 | |
Benchmarks | |||||||
Debt to Assets, Competitors2 | |||||||
Coca-Cola Co. | — | — | — | — | — | — | |
Mondelēz International Inc. | — | — | — | — | — | — | |
PepsiCo Inc. | — | — | — | — | — | — |
Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).
1 2014 Calculation
Debt to assets = Total debt ÷ Total assets
= 15,562 ÷ 38,784 = 0.40
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Diageo PLC debt to assets ratio deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014. |
Financial Leverage
Jun 30, 2014 | Jun 30, 2013 | Jun 30, 2012 | Jun 30, 2011 | Jun 30, 2010 | Jun 30, 2009 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions, translated from GBP £) | |||||||
Total assets | 38,784) | 41,559) | 36,347) | 30,729) | 29,943) | 29,258) | |
Equity attributable to equity shareholders of the parent company | 11,523) | 11,661) | 9,088) | 8,149) | 6,167) | 5,208) | |
Solvency Ratio | |||||||
Financial leverage1 | 3.37 | 3.56 | 4.00 | 3.77 | 4.86 | 5.62 | |
Benchmarks | |||||||
Financial Leverage, Competitors2 | |||||||
Coca-Cola Co. | — | — | — | — | — | — | |
Mondelēz International Inc. | — | — | — | — | — | — | |
PepsiCo Inc. | — | — | — | — | — | — |
Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).
1 2014 Calculation
Financial leverage = Total assets ÷ Equity attributable to equity shareholders of the parent company
= 38,784 ÷ 11,523 = 3.37
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Diageo PLC financial leverage ratio decreased from 2012 to 2013 and from 2013 to 2014. |
Interest Coverage
Jun 30, 2014 | Jun 30, 2013 | Jun 30, 2012 | Jun 30, 2011 | Jun 30, 2010 | Jun 30, 2009 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions, translated from GBP £) | |||||||
Profit for the year attributable to equity shareholders of the parent company | 3,797) | 4,118) | 3,158) | 2,952) | 2,507) | 2,621) | |
Add: Net income attributable to noncontrolling interest | (113) | 181) | 211) | 182) | 175) | 168) | |
Less: Discontinued operations | (140) | —) | (18) | —) | (29) | 3) | |
Add: Income tax expense | 755) | 877) | 1,688) | 533) | 734) | 472) | |
Add: Interest charges | 966) | 1,082) | 1,047) | 1,005) | 1,299) | 1,242) | |
Earnings before interest and tax (EBIT) | 5,545) | 6,258) | 6,123) | 4,672) | 4,745) | 4,500) | |
Solvency Ratio | |||||||
Interest coverage1 | 5.74 | 5.78 | 5.85 | 4.65 | 3.65 | 3.62 | |
Benchmarks | |||||||
Interest Coverage, Competitors2 | |||||||
Coca-Cola Co. | — | — | — | — | — | — | |
Mondelēz International Inc. | — | — | — | — | — | — | |
PepsiCo Inc. | — | — | — | — | — | — |
Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).
1 2014 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,545 ÷ 966 = 5.74
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Diageo PLC interest coverage ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |