Stock Analysis on Net

Diageo PLC (NYSE:DEO)

This company has been moved to the archive! The financial data has not been updated since August 12, 2014.

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Diageo PLC, solvency ratios

Microsoft Excel
Jun 30, 2014 Jun 30, 2013 Jun 30, 2012 Jun 30, 2011 Jun 30, 2010 Jun 30, 2009
Debt Ratios
Debt to equity 1.35 1.43 1.54 1.56 2.19 2.66
Debt to capital 0.57 0.59 0.61 0.61 0.69 0.73
Debt to assets 0.40 0.40 0.39 0.41 0.45 0.47
Financial leverage 3.37 3.56 4.00 3.77 4.86 5.62
Coverage Ratios
Interest coverage 5.74 5.78 5.85 4.65 3.65 3.62

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

Diageo PLC, debt to equity calculation, comparison to benchmarks

Microsoft Excel
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

Diageo PLC, debt to capital calculation, comparison to benchmarks

Microsoft Excel
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

Diageo PLC, debt to assets calculation, comparison to benchmarks

Microsoft Excel
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

Diageo PLC, financial leverage calculation, comparison to benchmarks

Microsoft Excel
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

Diageo PLC, interest coverage calculation, comparison to benchmarks

Microsoft Excel
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.