Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Activision Blizzard Inc. (NASDAQ:ATVI)

Analysis of Solvency Ratios

Beginner level

Solvency Ratios (Summary)

Activision Blizzard Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Debt Ratios
Debt to equity 0.24 0.21 0.24 0.46 0.54
Debt to equity (including operating lease liability) 0.26 0.23 0.24 0.46 0.54
Debt to capital 0.19 0.17 0.19 0.32 0.35
Debt to capital (including operating lease liability) 0.21 0.19 0.19 0.32 0.35
Debt to assets 0.16 0.13 0.15 0.24 0.28
Debt to assets (including operating lease liability) 0.17 0.15 0.15 0.24 0.28
Financial leverage 1.54 1.55 1.57 1.97 1.91
Coverage Ratios
Interest coverage 27.42 19.14 14.41 8.10 6.10
Fixed charge coverage 16.03 10.90 9.73 5.94 4.92

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Activision Blizzard Inc.’s debt to equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Activision Blizzard Inc.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Activision Blizzard Inc.’s debt to capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Activision Blizzard Inc.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Activision Blizzard Inc.’s debt to assets ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Activision Blizzard Inc.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Activision Blizzard Inc.’s financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Activision Blizzard Inc.’s interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Activision Blizzard Inc.’s fixed charge coverage ratio improved from 2018 to 2019 and from 2019 to 2020.

Debt to Equity

Activision Blizzard Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Long-term debt, net 3,605  2,675  2,671  4,390  4,887 
Total debt 3,605  2,675  2,671  4,390  4,887 
 
Shareholders’ equity 15,037  12,805  11,357  9,462  9,119 
Solvency Ratio
Debt to equity1 0.24 0.21 0.24 0.46 0.54
Benchmarks
Debt to Equity, Industry
Consumer Goods 1.87 1.83 1.79 1.76 1.52

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 3,605 ÷ 15,037 = 0.24

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Activision Blizzard Inc.’s debt to equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Equity (including Operating Lease Liability)

Activision Blizzard Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Long-term debt, net 3,605  2,675  2,671  4,390  4,887 
Total debt 3,605  2,675  2,671  4,390  4,887 
Current operating lease liabilities (classified in Accrued expenses and other current liabilities) 66  63  —  —  — 
Non-current operating lease liabilities (classified in Other liabilities) 224  210  —  —  — 
Total debt (including operating lease liability) 3,895  2,948  2,671  4,390  4,887 
 
Shareholders’ equity 15,037  12,805  11,357  9,462  9,119 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.26 0.23 0.24 0.46 0.54
Benchmarks
Debt to Equity (including Operating Lease Liability), Industry
Consumer Goods 1.95 1.87 1.79 1.76 1.52

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 3,895 ÷ 15,037 = 0.26

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Activision Blizzard Inc.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Capital

Activision Blizzard Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Long-term debt, net 3,605  2,675  2,671  4,390  4,887 
Total debt 3,605  2,675  2,671  4,390  4,887 
Shareholders’ equity 15,037  12,805  11,357  9,462  9,119 
Total capital 18,642  15,480  14,028  13,852  14,006 
Solvency Ratio
Debt to capital1 0.19 0.17 0.19 0.32 0.35
Benchmarks
Debt to Capital, Industry
Consumer Goods 0.65 0.65 0.64 0.64 0.60

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 3,605 ÷ 18,642 = 0.19

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Activision Blizzard Inc.’s debt to capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Capital (including Operating Lease Liability)

Activision Blizzard Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Long-term debt, net 3,605  2,675  2,671  4,390  4,887 
Total debt 3,605  2,675  2,671  4,390  4,887 
Current operating lease liabilities (classified in Accrued expenses and other current liabilities) 66  63  —  —  — 
Non-current operating lease liabilities (classified in Other liabilities) 224  210  —  —  — 
Total debt (including operating lease liability) 3,895  2,948  2,671  4,390  4,887 
Shareholders’ equity 15,037  12,805  11,357  9,462  9,119 
Total capital (including operating lease liability) 18,932  15,753  14,028  13,852  14,006 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.21 0.19 0.19 0.32 0.35
Benchmarks
Debt to Capital (including Operating Lease Liability), Industry
Consumer Goods 0.66 0.65 0.64 0.64 0.60

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 3,895 ÷ 18,932 = 0.21

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Activision Blizzard Inc.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Assets

Activision Blizzard Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Long-term debt, net 3,605  2,675  2,671  4,390  4,887 
Total debt 3,605  2,675  2,671  4,390  4,887 
 
Total assets 23,109  19,845  17,835  18,668  17,452 
Solvency Ratio
Debt to assets1 0.16 0.13 0.15 0.24 0.28
Benchmarks
Debt to Assets, Industry
Consumer Goods 0.42 0.41 0.42 0.41 0.38

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 3,605 ÷ 23,109 = 0.16

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Activision Blizzard Inc.’s debt to assets ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Assets (including Operating Lease Liability)

Activision Blizzard Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Long-term debt, net 3,605  2,675  2,671  4,390  4,887 
Total debt 3,605  2,675  2,671  4,390  4,887 
Current operating lease liabilities (classified in Accrued expenses and other current liabilities) 66  63  —  —  — 
Non-current operating lease liabilities (classified in Other liabilities) 224  210  —  —  — 
Total debt (including operating lease liability) 3,895  2,948  2,671  4,390  4,887 
 
Total assets 23,109  19,845  17,835  18,668  17,452 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.17 0.15 0.15 0.24 0.28
Benchmarks
Debt to Assets (including Operating Lease Liability), Industry
Consumer Goods 0.44 0.42 0.42 0.41 0.38

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 3,895 ÷ 23,109 = 0.17

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Activision Blizzard Inc.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Financial Leverage

Activision Blizzard Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Total assets 23,109  19,845  17,835  18,668  17,452 
Shareholders’ equity 15,037  12,805  11,357  9,462  9,119 
Solvency Ratio
Financial leverage1 1.54 1.55 1.57 1.97 1.91
Benchmarks
Financial Leverage, Industry
Consumer Goods 4.43 4.43 4.28 4.25 3.96

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 23,109 ÷ 15,037 = 1.54

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Activision Blizzard Inc.’s financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020.

Interest Coverage

Activision Blizzard Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 2,197  1,503  1,813  273  966 
Add: Income tax expense 419  130  64  878  140 
Add: Interest expense from debt and amortization of debt discount and deferred financing costs 99  90  140  162  217 
Earnings before interest and tax (EBIT) 2,715  1,723  2,017  1,313  1,323 
Solvency Ratio
Interest coverage1 27.42 19.14 14.41 8.10 6.10
Benchmarks
Interest Coverage, Industry
Consumer Goods 10.71 9.36 11.69 12.86 14.56

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,715 ÷ 99 = 27.42

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Activision Blizzard Inc.’s interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020.

Fixed Charge Coverage

Activision Blizzard Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 2,197  1,503  1,813  273  966 
Add: Income tax expense 419  130  64  878  140 
Add: Interest expense from debt and amortization of debt discount and deferred financing costs 99  90  140  162  217 
Earnings before interest and tax (EBIT) 2,715  1,723  2,017  1,313  1,323 
Add: Operating lease costs 75  75  75  71  65 
Earnings before fixed charges and tax 2,790  1,798  2,092  1,384  1,388 
 
Interest expense from debt and amortization of debt discount and deferred financing costs 99  90  140  162  217 
Operating lease costs 75  75  75  71  65 
Fixed charges 174  165  215  233  282 
Solvency Ratio
Fixed charge coverage1 16.03 10.90 9.73 5.94 4.92
Benchmarks
Fixed Charge Coverage, Industry
Consumer Goods 7.02 5.97 7.51 8.40 9.63

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,790 ÷ 174 = 16.03

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Activision Blizzard Inc.’s fixed charge coverage ratio improved from 2018 to 2019 and from 2019 to 2020.