Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
EMC Corp., solvency ratios
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | EMC Corp. debt to equity ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | EMC Corp. debt to capital ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | EMC Corp. debt to assets ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | EMC Corp. financial leverage ratio increased from 2013 to 2014 and from 2014 to 2015. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | EMC Corp. interest coverage ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | EMC Corp. fixed charge coverage ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Debt to Equity
EMC Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes converted and payable | —) | —) | 1,665) | —) | 1,700) | |
| Short-term debt | 1,299) | —) | —) | —) | —) | |
| Current portion of convertible debt | —) | —) | —) | 1,652) | 1,605) | |
| Long-term debt | 5,475) | 5,495) | 5,494) | —) | —) | |
| Total debt | 6,774) | 5,495) | 7,159) | 1,652) | 3,305) | |
| Total EMC Corporation’s shareholders’ equity | 21,140) | 21,896) | 22,301) | 22,357) | 18,959) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.32 | 0.25 | 0.32 | 0.07 | 0.17 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | |
| Analog Devices Inc. | — | — | — | — | — | |
| Applied Materials Inc. | — | — | — | — | — | |
| Broadcom Inc. | — | — | — | — | — | |
| Intel Corp. | — | — | — | — | — | |
| KLA Corp. | — | — | — | — | — | |
| Lam Research Corp. | — | — | — | — | — | |
| Micron Technology Inc. | — | — | — | — | — | |
| NVIDIA Corp. | — | — | — | — | — | |
| ON Semiconductor Corp. | — | — | — | — | — | |
| Qualcomm Inc. | — | — | — | — | — | |
| Texas Instruments Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Debt to equity = Total debt ÷ Total EMC Corporation’s shareholders’ equity
= 6,774 ÷ 21,140 = 0.32
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. | EMC Corp. debt to equity ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level. |
Debt to Capital
EMC Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes converted and payable | —) | —) | 1,665) | —) | 1,700) | |
| Short-term debt | 1,299) | —) | —) | —) | —) | |
| Current portion of convertible debt | —) | —) | —) | 1,652) | 1,605) | |
| Long-term debt | 5,475) | 5,495) | 5,494) | —) | —) | |
| Total debt | 6,774) | 5,495) | 7,159) | 1,652) | 3,305) | |
| Total EMC Corporation’s shareholders’ equity | 21,140) | 21,896) | 22,301) | 22,357) | 18,959) | |
| Total capital | 27,914) | 27,391) | 29,460) | 24,010) | 22,264) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.24 | 0.20 | 0.24 | 0.07 | 0.15 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | |
| Analog Devices Inc. | — | — | — | — | — | |
| Applied Materials Inc. | — | — | — | — | — | |
| Broadcom Inc. | — | — | — | — | — | |
| Intel Corp. | — | — | — | — | — | |
| KLA Corp. | — | — | — | — | — | |
| Lam Research Corp. | — | — | — | — | — | |
| Micron Technology Inc. | — | — | — | — | — | |
| NVIDIA Corp. | — | — | — | — | — | |
| ON Semiconductor Corp. | — | — | — | — | — | |
| Qualcomm Inc. | — | — | — | — | — | |
| Texas Instruments Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,774 ÷ 27,914 = 0.24
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. | EMC Corp. debt to capital ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level. |
Debt to Assets
EMC Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes converted and payable | —) | —) | 1,665) | —) | 1,700) | |
| Short-term debt | 1,299) | —) | —) | —) | —) | |
| Current portion of convertible debt | —) | —) | —) | 1,652) | 1,605) | |
| Long-term debt | 5,475) | 5,495) | 5,494) | —) | —) | |
| Total debt | 6,774) | 5,495) | 7,159) | 1,652) | 3,305) | |
| Total assets | 46,612) | 45,885) | 45,849) | 38,069) | 34,268) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.15 | 0.12 | 0.16 | 0.04 | 0.10 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | |
| Analog Devices Inc. | — | — | — | — | — | |
| Applied Materials Inc. | — | — | — | — | — | |
| Broadcom Inc. | — | — | — | — | — | |
| Intel Corp. | — | — | — | — | — | |
| KLA Corp. | — | — | — | — | — | |
| Lam Research Corp. | — | — | — | — | — | |
| Micron Technology Inc. | — | — | — | — | — | |
| NVIDIA Corp. | — | — | — | — | — | |
| ON Semiconductor Corp. | — | — | — | — | — | |
| Qualcomm Inc. | — | — | — | — | — | |
| Texas Instruments Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,774 ÷ 46,612 = 0.15
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. | EMC Corp. debt to assets ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level. |
Financial Leverage
EMC Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 46,612) | 45,885) | 45,849) | 38,069) | 34,268) | |
| Total EMC Corporation’s shareholders’ equity | 21,140) | 21,896) | 22,301) | 22,357) | 18,959) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.20 | 2.10 | 2.06 | 1.70 | 1.81 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | |
| Analog Devices Inc. | — | — | — | — | — | |
| Applied Materials Inc. | — | — | — | — | — | |
| Broadcom Inc. | — | — | — | — | — | |
| Intel Corp. | — | — | — | — | — | |
| KLA Corp. | — | — | — | — | — | |
| Lam Research Corp. | — | — | — | — | — | |
| Micron Technology Inc. | — | — | — | — | — | |
| NVIDIA Corp. | — | — | — | — | — | |
| ON Semiconductor Corp. | — | — | — | — | — | |
| Qualcomm Inc. | — | — | — | — | — | |
| Texas Instruments Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Financial leverage = Total assets ÷ Total EMC Corporation’s shareholders’ equity
= 46,612 ÷ 21,140 = 2.20
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. | EMC Corp. financial leverage ratio increased from 2013 to 2014 and from 2014 to 2015. |
Interest Coverage
EMC Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to EMC Corporation | 1,990) | 2,714) | 2,889) | 2,733) | 2,461) | |
| Add: Net income attributable to noncontrolling interest | 182) | 180) | 204) | 153) | 148) | |
| Add: Income tax expense | 710) | 868) | 772) | 918) | 640) | |
| Add: Interest expense | 164) | 147) | 156) | 79) | 170) | |
| Earnings before interest and tax (EBIT) | 3,046) | 3,909) | 4,021) | 3,883) | 3,420) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 18.57 | 26.59 | 25.78 | 49.21 | 20.06 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | |
| Analog Devices Inc. | — | — | — | — | — | |
| Applied Materials Inc. | — | — | — | — | — | |
| Broadcom Inc. | — | — | — | — | — | |
| Intel Corp. | — | — | — | — | — | |
| KLA Corp. | — | — | — | — | — | |
| Lam Research Corp. | — | — | — | — | — | |
| Micron Technology Inc. | — | — | — | — | — | |
| NVIDIA Corp. | — | — | — | — | — | |
| ON Semiconductor Corp. | — | — | — | — | — | |
| Qualcomm Inc. | — | — | — | — | — | |
| Texas Instruments Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,046 ÷ 164 = 18.57
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. | EMC Corp. interest coverage ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Fixed Charge Coverage
EMC Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to EMC Corporation | 1,990) | 2,714) | 2,889) | 2,733) | 2,461) | |
| Add: Net income attributable to noncontrolling interest | 182) | 180) | 204) | 153) | 148) | |
| Add: Income tax expense | 710) | 868) | 772) | 918) | 640) | |
| Add: Interest expense | 164) | 147) | 156) | 79) | 170) | |
| Earnings before interest and tax (EBIT) | 3,046) | 3,909) | 4,021) | 3,883) | 3,420) | |
| Add: Rent expense | 451) | 361) | 328) | 312) | 309) | |
| Earnings before fixed charges and tax | 3,497) | 4,270) | 4,349) | 4,194) | 3,728) | |
| Interest expense | 164) | 147) | 156) | 79) | 170) | |
| Rent expense | 451) | 361) | 328) | 312) | 309) | |
| Fixed charges | 615) | 508) | 484) | 391) | 479) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 5.69 | 8.41 | 8.99 | 10.74 | 7.78 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | |
| Analog Devices Inc. | — | — | — | — | — | |
| Applied Materials Inc. | — | — | — | — | — | |
| Broadcom Inc. | — | — | — | — | — | |
| Intel Corp. | — | — | — | — | — | |
| KLA Corp. | — | — | — | — | — | |
| Lam Research Corp. | — | — | — | — | — | |
| Micron Technology Inc. | — | — | — | — | — | |
| NVIDIA Corp. | — | — | — | — | — | |
| ON Semiconductor Corp. | — | — | — | — | — | |
| Qualcomm Inc. | — | — | — | — | — | |
| Texas Instruments Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,497 ÷ 615 = 5.69
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | EMC Corp. fixed charge coverage ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |