Debt to Equity
since 2008
Calculation
Activision Blizzard Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, net, including current portion1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 0.19 | = | 3,611) | ÷ | 19,243) |
| Dec 31, 2021 | 0.21 | = | 3,608) | ÷ | 17,599) |
| Dec 31, 2020 | 0.24 | = | 3,605) | ÷ | 15,037) |
| Dec 31, 2019 | 0.21 | = | 2,675) | ÷ | 12,805) |
| Dec 31, 2018 | 0.24 | = | 2,671) | ÷ | 11,357) |
| Dec 31, 2017 | 0.46 | = | 4,390) | ÷ | 9,462) |
| Dec 31, 2016 | 0.54 | = | 4,887) | ÷ | 9,119) |
| Dec 31, 2015 | 0.51 | = | 4,079) | ÷ | 8,068) |
| Dec 31, 2014 | 0.60 | = | 4,324) | ÷ | 7,233) |
| Dec 31, 2013 | 0.71 | = | 4,693) | ÷ | 6,622) |
| Dec 31, 2012 | 0.00 | = | —) | ÷ | 11,317) |
| Dec 31, 2011 | 0.00 | = | —) | ÷ | 10,492) |
| Dec 31, 2010 | 0.00 | = | —) | ÷ | 10,203) |
| Dec 31, 2009 | 0.00 | = | —) | ÷ | 10,756) |
| Dec 31, 2008 | 0.00 | = | —) | ÷ | 11,527) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
1 US$ in millions
An analysis of the leverage profile from 2008 to 2022 reveals a consistent long-term trend toward deleveraging and a substantial strengthening of the capital base. The financial position evolved from a period of higher relative indebtedness in the early 2010s to a highly conservative capital structure by the end of 2022.
- Shareholders' Equity Evolution
- Equity levels showed significant volatility between 2008 and 2013, declining from 11.53 billion USD to a low of 6.62 billion USD. Following 2013, a period of sustained and aggressive growth is observed, with equity increasing every consecutive year to reach 19.24 billion USD by December 31, 2022. This trajectory indicates a strong accumulation of retained earnings or capital contributions.
- Long-term Debt Dynamics
- Debt levels remained relatively high between 2013 and 2017, peaking at 4.89 billion USD in 2016. A notable reduction in liabilities occurred in 2018, when long-term debt dropped to 2.67 billion USD. While debt increased slightly in the subsequent years, stabilizing at 3.61 billion USD by 2022, the overall levels remained significantly lower than the peaks seen in the mid-2010s.
- Debt to Equity Ratio Interpretation
- The debt to equity ratio demonstrates a clear downward trend, reflecting a reduction in financial risk. The ratio decreased from a peak of 0.71 in 2013 to 0.19 in 2022. A critical inflection point occurred between 2017 and 2018, where the ratio fell from 0.46 to 0.24, driven by the simultaneous reduction of debt and the expansion of equity. This decline indicates that the company has shifted toward relying more heavily on equity than debt to finance its operations.
The convergence of rising equity and managed debt levels has resulted in a significantly improved solvency position. The reduction of the debt to equity ratio to 0.19 by 2022 underscores a diminished reliance on external borrowing and a strengthened balance sheet capable of absorbing greater financial volatility.
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Comparison to Competitors
Activision Blizzard Inc., debt to equity, long-term trends, comparison to competitors
| Activision Blizzard Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2022 | 0.19 | 0.06 | 1.17 | 0.08 | 0.69 | 0.51 |
| Dec 31, 2021 | 0.21 | 0.06 | 0.99 | 0.00 | 0.97 | 0.61 |
| Dec 31, 2020 | 0.24 | 0.06 | 1.15 | 0.00 | 1.47 | 0.70 |
| Dec 31, 2019 | 0.21 | 0.02 | 1.24 | 0.00 | 1.95 | 0.53 |
| Dec 31, 2018 | 0.24 | 0.02 | 1.56 | 0.00 | 1.98 | 0.43 |
| Dec 31, 2017 | 0.46 | 0.03 | 0.94 | 0.00 | 1.81 | 0.61 |
| Dec 31, 2016 | 0.54 | 0.03 | 1.13 | 0.00 | 1.26 | 0.47 |
| Dec 31, 2015 | 0.51 | 0.04 | 1.01 | 0.00 | 1.07 | 0.39 |
| Dec 31, 2014 | 0.60 | 0.05 | 0.92 | 0.01 | 0.48 | 0.33 |
| Dec 31, 2013 | 0.71 | 0.06 | 0.94 | 0.03 | 0.37 | 0.31 |
| Dec 31, 2012 | 0.00 | 0.08 | 0.82 | 0.20 | 0.54 | 0.36 |
| Dec 31, 2011 | 0.00 | 0.07 | 0.83 | — | 0.62 | 0.37 |
| Dec 31, 2010 | 0.00 | 0.07 | 0.71 | — | 0.69 | 0.33 |
| Dec 31, 2009 | 0.00 | 0.00 | 0.68 | — | 1.00 | 0.38 |
| Dec 31, 2008 | 0.00 | 0.00 | 0.80 | — | 0.00 | 0.45 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
Comparison to Sector (Media & Entertainment)
Activision Blizzard Inc., debt to equity, long-term trends, comparison to sector (media & entertainment)
| Activision Blizzard Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2022 | 0.19 | 0.31 |
| Dec 31, 2021 | 0.21 | 0.31 |
| Dec 31, 2020 | 0.24 | 0.36 |
| Dec 31, 2019 | 0.21 | 0.35 |
| Dec 31, 2018 | 0.24 | 0.38 |
| Dec 31, 2017 | 0.46 | 0.29 |
| Dec 31, 2016 | 0.54 | 0.30 |
| Dec 31, 2015 | 0.51 | 0.29 |
| Dec 31, 2014 | 0.60 | 0.29 |
| Dec 31, 2013 | 0.71 | 0.34 |
| Dec 31, 2012 | 0.00 | 0.36 |
| Dec 31, 2011 | 0.00 | 0.40 |
| Dec 31, 2010 | 0.00 | 0.37 |
| Dec 31, 2009 | 0.00 | 0.37 |
| Dec 31, 2008 | 0.00 | 0.46 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
Comparison to Industry (Communication Services)
Activision Blizzard Inc., debt to equity, long-term trends, comparison to industry (communication services)
| Activision Blizzard Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2022 | 0.19 | 0.65 |
| Dec 31, 2021 | 0.21 | 0.65 |
| Dec 31, 2020 | 0.24 | 0.67 |
| Dec 31, 2019 | 0.21 | 0.62 |
| Dec 31, 2018 | 0.24 | 0.71 |
| Dec 31, 2017 | 0.46 | 0.75 |
| Dec 31, 2016 | 0.54 | 0.75 |
| Dec 31, 2015 | 0.51 | 0.81 |
| Dec 31, 2014 | 0.60 | 0.81 |
| Dec 31, 2013 | 0.71 | 0.75 |
| Dec 31, 2012 | 0.00 | 0.62 |
| Dec 31, 2011 | 0.00 | 0.62 |
| Dec 31, 2010 | 0.00 | 0.60 |
| Dec 31, 2009 | 0.00 | 0.69 |
| Dec 31, 2008 | 0.00 | 0.73 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).