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Petroleo Brasileiro S.A. (PBR) | Long-term Debt and Solvency Analysis

Solvency ratios also known as long-term debt ratios measure a company's ability to meet long-term obligations.


Ratios (Summary)

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Petroleo Brasileiro S.A., debt and solvency ratios

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
chart Debt to equity
chart Debt to capital
chart Interest coverage

Source: Based on data from Petroleo Brasileiro S.A. Annual Reports

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Petroleo Brasileiro S.A.'s debt-to-equity ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Petroleo Brasileiro S.A.'s debt-to-capital ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Petroleo Brasileiro S.A.'s interest coverage ratio deteriorated from 2009 to 2010 but then improved from 2010 to 2011 not reaching 2009 level.

Debt to Equity

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Current debt
chart Current portion of finance lease obligations
chart Long-term debt
chart Finance lease obligations
chart Total debt
chart Petrobras shareholder's equity
  Debt to Equity, Comparison to Industry
chart Petroleo Brasileiro S.A.1
  Industry, Oil & Gas

Source: Based on data from Petroleo Brasileiro S.A. Annual Reports

2011 Calculations

1 Debt to equity = Total debt ÷ Petrobras shareholder's equity
= ÷ =

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Petroleo Brasileiro S.A.'s debt-to-equity ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.

Debt to Capital

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Current debt
chart Current portion of finance lease obligations
chart Long-term debt
chart Finance lease obligations
chart Total debt
chart Petrobras shareholder's equity
chart Total capital
  Debt to Capital, Comparison to Industry
chart Petroleo Brasileiro S.A.1
  Industry, Oil & Gas

Source: Based on data from Petroleo Brasileiro S.A. Annual Reports

2011 Calculations

1 Debt to capital = Total debt ÷ Total capital
= ÷ =

Ratio Description The company
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Petroleo Brasileiro S.A.'s debt-to-capital ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.

Interest Coverage

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Net income attributable to shareholders of Petrobras
chart Add: Net (income) loss attributable to non-controlling interests
chart Add: Borrowing costs, excluding capitalized
chart Add: Income tax expense (benefit)
chart Earnings before interest and tax (EBIT)
  Interest Coverage, Comparison to Industry
chart Petroleo Brasileiro S.A.1
  Industry, Oil & Gas

Source: Based on data from Petroleo Brasileiro S.A. Annual Reports

2011 Calculations

1 Interest coverage = EBIT ÷ Interest expense
= ÷ =

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Petroleo Brasileiro S.A.'s interest coverage ratio deteriorated from 2009 to 2010 but then improved from 2010 to 2011 not reaching 2009 level.

May 24, 2012

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