Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Amgen Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial data exhibits notable variations and trends across several important leverage and coverage ratios over the reported periods.
- Debt to Equity Ratio
- This ratio shows a gradual increase from 3.36 in March 2020 to a peak of 4.97 by December 2021, indicating growing reliance on debt relative to equity. A dramatic spike occurs in March 2022, jumping to 40.23, likely reflecting a one-time event or accounting adjustment, followed by a sharp decline to 15.1 in June 2022 and a steady downward trend thereafter. The ratio tends to stabilize around values between approximately 7.5 and 12.75 from the latter part of 2022 through mid-2025, suggesting a reduction in debt reliance after the spike but maintaining elevated leverage compared to the early period.
- Debt to Capital Ratio
- This ratio remains relatively stable with slight fluctuations around the 0.76 to 0.83 range until December 2021. A significant increase is apparent beginning March 2022 at 0.98, followed by a gradual decline towards 0.88 by June 2025. Despite the spike, the values remain within a high range, indicating continued predominance of debt in the overall capital structure.
- Debt to Assets Ratio
- The debt to assets ratio shows moderate growth from 0.52 in early 2020 to approximately 0.58 by late 2021. A marked increase occurs in March 2023 to 0.69, and this higher level persists with only minor decreases to 0.64 by mid-2025. This trend suggests an increasing portion of asset financing through debt over time.
- Financial Leverage
- Financial leverage mirrors the prior leverage ratios with an initial moderate range of 5.9 to 9.13 up to December 2021. A dramatic spike is seen in March 2022 at 64.62, closely paralleling the debt to equity surge. This is followed by a rapid drop to mid-teens in subsequent quarters, maintaining elevated levels relative to early 2020 figures but indicating some deleveraging action after the spike.
- Interest Coverage Ratio
- Data for this ratio begins from September 2020, showing a healthy coverage above 6.0 until mid-2022. From that point, there is a clear declining trend, dropping to around 2.1 to 3.5 in the final observed periods through mid-2025. The declining interest coverage ratio indicates increasing difficulty in comfortably servicing interest expenses relative to earnings, implying rising financial risk or reduced earnings capacity.
In summary, the data reveals a period of rising financial leverage culminating in an anomalous spike during early 2022, followed by partial deleveraging but maintenance of higher debt levels compared to pre-2022 periods. Concurrently, the interest coverage ratio has deteriorated steadily, suggesting increased strain on earnings to cover interest expenses. The overall shifts point to heightened financial risk and a capital structure more weighted towards debt throughout the recent years.
Debt Ratios
Coverage Ratios
Debt to Equity
Amgen Inc., debt to equity calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt | 2,444) | 3,368) | 3,550) | 3,544) | 5,528) | 3,959) | 1,443) | 1,428) | 2,167) | 834) | 1,591) | 1,543) | 817) | 844) | 87) | 4,288) | 4,324) | 1,556) | 91) | 91) | 91) | 1,840) | |||||||
| Long-term debt, excluding current portion | 53,760) | 54,013) | 56,549) | 56,854) | 57,117) | 60,061) | 63,170) | 59,040) | 59,377) | 60,761) | 37,354) | 37,161) | 35,705) | 36,010) | 33,222) | 33,291) | 28,458) | 31,129) | 32,895) | 34,196) | 34,133) | 30,008) | |||||||
| Total debt | 56,204) | 57,381) | 60,099) | 60,398) | 62,645) | 64,020) | 64,613) | 60,468) | 61,544) | 61,595) | 38,945) | 38,704) | 36,522) | 36,854) | 33,309) | 37,579) | 32,782) | 32,685) | 32,986) | 34,287) | 34,224) | 31,848) | |||||||
| Stockholders’ equity | 7,428) | 6,207) | 5,877) | 7,527) | 5,925) | 5,022) | 6,232) | 7,656) | 6,781) | 5,348) | 3,661) | 3,653) | 2,419) | 916) | 6,700) | 8,217) | 8,247) | 9,334) | 9,409) | 10,959) | 10,659) | 9,485) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 7.57 | 9.24 | 10.23 | 8.02 | 10.57 | 12.75 | 10.37 | 7.90 | 9.08 | 11.52 | 10.64 | 10.60 | 15.10 | 40.23 | 4.97 | 4.57 | 3.98 | 3.50 | 3.51 | 3.13 | 3.21 | 3.36 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| AbbVie Inc. | — | 49.22 | 20.19 | 11.78 | 10.42 | 9.24 | 5.73 | 5.02 | 4.74 | 4.68 | 3.67 | 4.35 | 4.98 | 4.51 | 4.98 | 5.96 | 6.53 | 6.24 | 6.58 | 5.70 | 5.94 | — | |||||||
| Bristol-Myers Squibb Co. | 2.82 | 2.86 | 3.04 | 2.90 | 3.08 | 3.38 | 1.35 | 1.30 | 1.18 | 1.19 | 1.27 | 1.20 | 1.29 | 1.42 | 1.24 | 1.20 | 1.23 | 1.23 | 1.34 | 0.90 | 0.95 | 0.94 | |||||||
| Danaher Corp. | 0.33 | 0.32 | 0.32 | 0.34 | 0.34 | 0.34 | 0.34 | 0.42 | 0.38 | 0.39 | 0.39 | 0.41 | 0.43 | 0.47 | 0.49 | 0.54 | 0.48 | 0.50 | 0.53 | 0.57 | 0.62 | 0.84 | |||||||
| Eli Lilly & Co. | 2.18 | 2.44 | 2.37 | 2.19 | 2.13 | 2.05 | 2.34 | 1.80 | 1.70 | 1.69 | 1.52 | 1.58 | 1.97 | 1.77 | 1.88 | 2.20 | 2.56 | 2.35 | 2.94 | 3.51 | 3.99 | 5.60 | |||||||
| Gilead Sciences Inc. | 1.27 | 1.30 | 1.38 | 1.26 | 1.28 | 1.44 | 1.09 | 1.12 | 1.19 | 1.20 | 1.19 | 1.20 | 1.30 | 1.32 | 1.27 | 1.29 | 1.53 | 1.59 | 1.73 | 1.68 | 1.34 | 1.09 | |||||||
| Johnson & Johnson | 0.65 | 0.67 | 0.51 | 0.51 | 0.58 | 0.48 | 0.43 | 0.42 | 0.61 | 0.75 | 0.52 | 0.43 | 0.43 | 0.44 | 0.46 | 0.48 | 0.48 | 0.51 | 0.56 | 0.59 | 0.48 | 0.45 | |||||||
| Merck & Co. Inc. | 0.72 | 0.72 | 0.80 | 0.86 | 0.87 | 0.85 | 0.93 | 0.85 | 0.95 | 0.66 | 0.67 | 0.68 | 0.73 | 0.78 | 0.87 | 0.74 | 0.80 | 1.16 | 1.26 | 0.98 | 1.12 | 1.07 | |||||||
| Pfizer Inc. | 0.70 | 0.69 | 0.73 | 0.73 | 0.79 | 0.75 | 0.81 | 0.66 | 0.66 | 0.36 | 0.37 | 0.40 | 0.46 | 0.44 | 0.50 | 0.53 | 0.56 | 0.58 | 0.63 | 0.97 | 0.99 | 0.80 | |||||||
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | 0.14 | 0.16 | 0.18 | 0.23 | 0.24 | 0.27 | 0.24 | 0.06 | |||||||
| Thermo Fisher Scientific Inc. | 0.70 | 0.69 | 0.63 | 0.72 | 0.75 | 0.78 | 0.75 | 0.78 | 0.78 | 0.83 | 0.78 | 0.67 | 0.72 | 0.81 | 0.85 | 0.56 | 0.51 | 0.53 | 0.63 | 0.66 | 0.71 | 0.70 | |||||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 56,204 ÷ 7,428 = 7.57
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends regarding the company’s leverage and equity position over the observed periods.
- Total Debt
- Total debt shows a generally increasing trend from March 31, 2020, through December 31, 2021, rising from approximately $31.8 billion to $33.3 billion, with fluctuations including a peak around September 30, 2021, at about $37.6 billion. Thereafter, debt levels continue to increase significantly, reaching a peak of approximately $64.6 billion by December 31, 2023, before gradually declining to around $56.2 billion by June 30, 2025.
- Stockholders' Equity
- Stockholders' equity demonstrates a contrasting downward trend initially, decreasing from roughly $9.5 billion in March 2020 to just $6.7 billion at the end of 2021. It then drops sharply to about $916 million by March 31, 2022. Following this, equity gradually recovers over subsequent quarters, peaking around $7.7 billion in September 2024, before slightly decreasing to $7.4 billion by mid-2025.
- Debt to Equity Ratio
- The debt to equity ratio exhibits substantial volatility, generally trending upward throughout the period. Starting at a ratio of approximately 3.36 in March 2020, it increases steadily to nearly 5.0 by December 2021. This ratio spikes dramatically in early 2022, reaching an exceptionally high value of over 40.0 by March 31, 2022, reflecting the sharp drop in equity against high debt levels. Subsequently, the ratio declines, fluctuating between about 7.5 and 12.8 in the later periods, indicating sustained high leverage but with some reduction compared to the peak.
Overall, the data indicates that the company has taken on significantly more debt relative to its equity over the examined timeline, particularly from early 2022 onward. The sudden decline in equity around early 2022 substantially amplifies the leverage ratio, highlighting weakened shareholder equity support during that period. Although there is a gradual recovery in equity following the decline, the high debt levels maintain an elevated debt to equity ratio, suggesting increased financial risk and dependence on debt financing in recent years.
Debt to Capital
Amgen Inc., debt to capital calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt | 2,444) | 3,368) | 3,550) | 3,544) | 5,528) | 3,959) | 1,443) | 1,428) | 2,167) | 834) | 1,591) | 1,543) | 817) | 844) | 87) | 4,288) | 4,324) | 1,556) | 91) | 91) | 91) | 1,840) | |||||||
| Long-term debt, excluding current portion | 53,760) | 54,013) | 56,549) | 56,854) | 57,117) | 60,061) | 63,170) | 59,040) | 59,377) | 60,761) | 37,354) | 37,161) | 35,705) | 36,010) | 33,222) | 33,291) | 28,458) | 31,129) | 32,895) | 34,196) | 34,133) | 30,008) | |||||||
| Total debt | 56,204) | 57,381) | 60,099) | 60,398) | 62,645) | 64,020) | 64,613) | 60,468) | 61,544) | 61,595) | 38,945) | 38,704) | 36,522) | 36,854) | 33,309) | 37,579) | 32,782) | 32,685) | 32,986) | 34,287) | 34,224) | 31,848) | |||||||
| Stockholders’ equity | 7,428) | 6,207) | 5,877) | 7,527) | 5,925) | 5,022) | 6,232) | 7,656) | 6,781) | 5,348) | 3,661) | 3,653) | 2,419) | 916) | 6,700) | 8,217) | 8,247) | 9,334) | 9,409) | 10,959) | 10,659) | 9,485) | |||||||
| Total capital | 63,632) | 63,588) | 65,976) | 67,925) | 68,570) | 69,042) | 70,845) | 68,124) | 68,325) | 66,943) | 42,606) | 42,357) | 38,941) | 37,770) | 40,009) | 45,796) | 41,029) | 42,019) | 42,395) | 45,246) | 44,883) | 41,333) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.88 | 0.90 | 0.91 | 0.89 | 0.91 | 0.93 | 0.91 | 0.89 | 0.90 | 0.92 | 0.91 | 0.91 | 0.94 | 0.98 | 0.83 | 0.82 | 0.80 | 0.78 | 0.78 | 0.76 | 0.76 | 0.77 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| AbbVie Inc. | 1.00 | 0.98 | 0.95 | 0.92 | 0.91 | 0.90 | 0.85 | 0.83 | 0.83 | 0.82 | 0.79 | 0.81 | 0.83 | 0.82 | 0.83 | 0.86 | 0.87 | 0.86 | 0.87 | 0.85 | 0.86 | 1.12 | |||||||
| Bristol-Myers Squibb Co. | 0.74 | 0.74 | 0.75 | 0.74 | 0.75 | 0.77 | 0.57 | 0.56 | 0.54 | 0.54 | 0.56 | 0.54 | 0.56 | 0.59 | 0.55 | 0.55 | 0.55 | 0.55 | 0.57 | 0.47 | 0.49 | 0.48 | |||||||
| Danaher Corp. | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.26 | 0.30 | 0.28 | 0.28 | 0.28 | 0.29 | 0.30 | 0.32 | 0.33 | 0.35 | 0.32 | 0.33 | 0.35 | 0.37 | 0.38 | 0.46 | |||||||
| Eli Lilly & Co. | 0.69 | 0.71 | 0.70 | 0.69 | 0.68 | 0.67 | 0.70 | 0.64 | 0.63 | 0.63 | 0.60 | 0.61 | 0.66 | 0.64 | 0.65 | 0.69 | 0.72 | 0.70 | 0.75 | 0.78 | 0.80 | 0.85 | |||||||
| Gilead Sciences Inc. | 0.56 | 0.57 | 0.58 | 0.56 | 0.56 | 0.59 | 0.52 | 0.53 | 0.54 | 0.55 | 0.54 | 0.54 | 0.56 | 0.57 | 0.56 | 0.56 | 0.60 | 0.61 | 0.63 | 0.63 | 0.57 | 0.52 | |||||||
| Johnson & Johnson | 0.39 | 0.40 | 0.34 | 0.34 | 0.37 | 0.32 | 0.30 | 0.30 | 0.38 | 0.43 | 0.34 | 0.30 | 0.30 | 0.31 | 0.31 | 0.33 | 0.32 | 0.34 | 0.36 | 0.37 | 0.33 | 0.31 | |||||||
| Merck & Co. Inc. | 0.42 | 0.42 | 0.44 | 0.46 | 0.46 | 0.46 | 0.48 | 0.46 | 0.49 | 0.40 | 0.40 | 0.41 | 0.42 | 0.44 | 0.46 | 0.42 | 0.44 | 0.54 | 0.56 | 0.50 | 0.53 | 0.52 | |||||||
| Pfizer Inc. | 0.41 | 0.41 | 0.42 | 0.42 | 0.44 | 0.43 | 0.45 | 0.40 | 0.40 | 0.26 | 0.27 | 0.28 | 0.32 | 0.31 | 0.33 | 0.35 | 0.36 | 0.37 | 0.39 | 0.49 | 0.50 | 0.45 | |||||||
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.12 | 0.12 | 0.13 | 0.14 | 0.15 | 0.18 | 0.20 | 0.21 | 0.20 | 0.06 | |||||||
| Thermo Fisher Scientific Inc. | 0.41 | 0.41 | 0.39 | 0.42 | 0.43 | 0.44 | 0.43 | 0.44 | 0.44 | 0.45 | 0.44 | 0.40 | 0.42 | 0.45 | 0.46 | 0.36 | 0.34 | 0.35 | 0.39 | 0.40 | 0.42 | 0.41 | |||||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 56,204 ÷ 63,632 = 0.88
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a generally increasing trend from March 2020 through December 2021, rising from approximately 31.8 billion to around 33.3 billion US dollars, with a notable peak at nearly 37.6 billion in September 2021. From March 2022 onward, total debt fluctuated but maintained a higher level overall, reaching a peak of about 64.6 billion US dollars in December 2023 before beginning a gradual decline to approximately 56.2 billion by June 2025. This indicates periods of increased borrowing possibly corresponding to strategic financing activities, followed by cautious deleveraging.
- Total Capital
- Total capital initially rose from about 41.3 billion US dollars in March 2020 to around 45.3 billion in September 2020, then decreased to approximately 40.0 billion by December 2021. A substantial increase is noted starting in March 2023, climbing sharply to a peak of roughly 70.8 billion in December 2023. Thereafter, total capital gradually declined, settling at around 63.6 billion by June 2025. This pattern suggests a significant capital infusion or revaluation event in early 2023, followed by relative stabilization.
- Debt to Capital Ratio
- The debt to capital ratio remained relatively stable near 0.77 to 0.83 from March 2020 through December 2021, indicating that debt consistently constituted a major portion of the capital structure in this period. It then increased sharply to approximately 0.98 by March 2022, denoting a high leverage level. Subsequently, the ratio declined gradually but remained elevated, fluctuating between 0.88 and 0.93 from mid-2022 through June 2025. This sustained high leverage level reflects a capital structure heavily reliant on debt financing during these years.
Debt to Assets
Amgen Inc., debt to assets calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt | 2,444) | 3,368) | 3,550) | 3,544) | 5,528) | 3,959) | 1,443) | 1,428) | 2,167) | 834) | 1,591) | 1,543) | 817) | 844) | 87) | 4,288) | 4,324) | 1,556) | 91) | 91) | 91) | 1,840) | |||||||
| Long-term debt, excluding current portion | 53,760) | 54,013) | 56,549) | 56,854) | 57,117) | 60,061) | 63,170) | 59,040) | 59,377) | 60,761) | 37,354) | 37,161) | 35,705) | 36,010) | 33,222) | 33,291) | 28,458) | 31,129) | 32,895) | 34,196) | 34,133) | 30,008) | |||||||
| Total debt | 56,204) | 57,381) | 60,099) | 60,398) | 62,645) | 64,020) | 64,613) | 60,468) | 61,544) | 61,595) | 38,945) | 38,704) | 36,522) | 36,854) | 33,309) | 37,579) | 32,782) | 32,685) | 32,986) | 34,287) | 34,224) | 31,848) | |||||||
| Total assets | 87,897) | 89,367) | 91,839) | 90,883) | 90,907) | 92,980) | 97,154) | 90,534) | 90,269) | 88,720) | 65,121) | 63,700) | 59,294) | 59,196) | 61,165) | 64,993) | 59,773) | 62,539) | 62,948) | 64,637) | 65,011) | 61,669) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.64 | 0.64 | 0.65 | 0.66 | 0.69 | 0.69 | 0.67 | 0.67 | 0.68 | 0.69 | 0.60 | 0.61 | 0.62 | 0.62 | 0.54 | 0.58 | 0.55 | 0.52 | 0.52 | 0.53 | 0.53 | 0.52 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| AbbVie Inc. | 0.51 | 0.51 | 0.50 | 0.50 | 0.50 | 0.50 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | 0.49 | 0.51 | 0.51 | 0.52 | 0.54 | 0.56 | 0.57 | 0.57 | 0.58 | 0.58 | 0.74 | |||||||
| Bristol-Myers Squibb Co. | 0.52 | 0.54 | 0.54 | 0.53 | 0.55 | 0.56 | 0.42 | 0.41 | 0.40 | 0.40 | 0.41 | 0.40 | 0.42 | 0.44 | 0.41 | 0.40 | 0.41 | 0.41 | 0.43 | 0.36 | 0.36 | 0.36 | |||||||
| Danaher Corp. | 0.21 | 0.21 | 0.21 | 0.22 | 0.22 | 0.22 | 0.22 | 0.25 | 0.23 | 0.23 | 0.23 | 0.24 | 0.25 | 0.26 | 0.27 | 0.29 | 0.26 | 0.27 | 0.28 | 0.30 | 0.31 | 0.38 | |||||||
| Eli Lilly & Co. | 0.40 | 0.43 | 0.43 | 0.41 | 0.40 | 0.41 | 0.39 | 0.35 | 0.34 | 0.36 | 0.33 | 0.33 | 0.36 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.36 | 0.39 | 0.39 | 0.42 | |||||||
| Gilead Sciences Inc. | 0.45 | 0.44 | 0.45 | 0.43 | 0.44 | 0.45 | 0.40 | 0.40 | 0.40 | 0.41 | 0.40 | 0.40 | 0.42 | 0.42 | 0.39 | 0.41 | 0.44 | 0.45 | 0.46 | 0.48 | 0.43 | 0.40 | |||||||
| Johnson & Johnson | 0.26 | 0.27 | 0.20 | 0.20 | 0.23 | 0.20 | 0.18 | 0.18 | 0.24 | 0.27 | 0.21 | 0.18 | 0.18 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.20 | 0.22 | 0.19 | 0.18 | |||||||
| Merck & Co. Inc. | 0.30 | 0.30 | 0.32 | 0.32 | 0.34 | 0.32 | 0.33 | 0.33 | 0.35 | 0.29 | 0.28 | 0.28 | 0.30 | 0.30 | 0.31 | 0.28 | 0.29 | 0.34 | 0.35 | 0.32 | 0.34 | 0.33 | |||||||
| Pfizer Inc. | 0.30 | 0.30 | 0.30 | 0.31 | 0.32 | 0.31 | 0.32 | 0.30 | 0.30 | 0.18 | 0.18 | 0.19 | 0.21 | 0.20 | 0.21 | 0.22 | 0.23 | 0.25 | 0.26 | 0.35 | 0.36 | 0.31 | |||||||
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.13 | 0.15 | 0.16 | 0.17 | 0.15 | 0.05 | |||||||
| Thermo Fisher Scientific Inc. | 0.35 | 0.35 | 0.32 | 0.35 | 0.36 | 0.37 | 0.35 | 0.36 | 0.36 | 0.37 | 0.35 | 0.32 | 0.33 | 0.36 | 0.37 | 0.29 | 0.28 | 0.28 | 0.31 | 0.33 | 0.35 | 0.34 | |||||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 56,204 ÷ 87,897 = 0.64
2 Click competitor name to see calculations.
- Total Debt
- The total debt shows a generally increasing trend from March 31, 2020, to December 31, 2024, followed by a decline in the first half of 2025. Initially, debt rises moderately from approximately 31.8 billion USD in early 2020 to around 38.9 billion USD by the end of 2022, with some fluctuations. A significant increase occurs at the beginning of 2023, peaking near 64.6 billion USD at the end of 2023, before gradually decreasing to roughly 56.2 billion USD in mid-2025. This pattern suggests an expansion in debt levels through 2023, coupled with a strategic deleveraging effort in 2024 and 2025.
- Total Assets
- Total assets display an upward trajectory overall, albeit with periodic fluctuations. Starting at around 61.7 billion USD in Q1 2020, assets slightly decline through mid-2021, touching near 59.2 billion USD, then recover and increase sharply beginning in early 2023 peaking at approximately 97.2 billion USD in December 2023. After this peak, assets slightly retreat but remain elevated relative to earlier periods, settling just below 87.9 billion USD in mid-2025. The asset growth aligns with the increase in debt, particularly in 2023, indicating possible asset acquisitions or capital investments financed through debt issuance.
- Debt to Assets Ratio
- The debt to assets ratio fluctuates within a range from 0.52 to 0.69 over the observed period. Initially stable around 0.52-0.55 in 2020 and early 2021, the ratio trends upward from mid-2021, reaching its highest point around 0.69 from 2023 through mid-2024. This sustained increase reflects that total debt has grown at a faster pace than total assets during this time. In the latter half of 2024 and into 2025, the ratio declines modestly to about 0.64, consistent with the reduction in total debt and stabilization of assets. This ratio behavior suggests a period of increased financial leverage during 2023, followed by an effort to strengthen the balance sheet by reducing relative debt levels.
Financial Leverage
Amgen Inc., financial leverage calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | 87,897) | 89,367) | 91,839) | 90,883) | 90,907) | 92,980) | 97,154) | 90,534) | 90,269) | 88,720) | 65,121) | 63,700) | 59,294) | 59,196) | 61,165) | 64,993) | 59,773) | 62,539) | 62,948) | 64,637) | 65,011) | 61,669) | |||||||
| Stockholders’ equity | 7,428) | 6,207) | 5,877) | 7,527) | 5,925) | 5,022) | 6,232) | 7,656) | 6,781) | 5,348) | 3,661) | 3,653) | 2,419) | 916) | 6,700) | 8,217) | 8,247) | 9,334) | 9,409) | 10,959) | 10,659) | 9,485) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 11.83 | 14.40 | 15.63 | 12.07 | 15.34 | 18.51 | 15.59 | 11.83 | 13.31 | 16.59 | 17.79 | 17.44 | 24.51 | 64.62 | 9.13 | 7.91 | 7.25 | 6.70 | 6.69 | 5.90 | 6.10 | 6.50 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| AbbVie Inc. | — | 95.89 | 40.65 | 23.78 | 20.94 | 18.59 | 13.00 | 11.26 | 10.52 | 10.14 | 8.04 | 8.84 | 9.77 | 8.80 | 9.51 | 10.99 | 11.77 | 10.98 | 11.51 | 9.80 | 10.17 | — | |||||||
| Bristol-Myers Squibb Co. | 5.43 | 5.32 | 5.67 | 5.46 | 5.56 | 6.01 | 3.23 | 3.15 | 2.92 | 2.96 | 3.12 | 3.01 | 3.08 | 3.26 | 3.04 | 2.98 | 3.01 | 2.99 | 3.13 | 2.50 | 2.61 | 2.59 | |||||||
| Danaher Corp. | 1.56 | 1.56 | 1.57 | 1.57 | 1.57 | 1.56 | 1.58 | 1.67 | 1.64 | 1.65 | 1.68 | 1.72 | 1.76 | 1.80 | 1.84 | 1.90 | 1.82 | 1.87 | 1.92 | 1.92 | 1.97 | 2.22 | |||||||
| Eli Lilly & Co. | 5.52 | 5.67 | 5.55 | 5.31 | 5.30 | 4.99 | 5.94 | 5.16 | 4.95 | 4.75 | 4.65 | 4.71 | 5.51 | 5.03 | 5.44 | 6.21 | 7.42 | 6.79 | 8.27 | 9.10 | 10.25 | 13.35 | |||||||
| Gilead Sciences Inc. | 2.83 | 2.95 | 3.05 | 2.95 | 2.93 | 3.21 | 2.72 | 2.80 | 2.95 | 2.95 | 2.97 | 2.97 | 3.11 | 3.17 | 3.23 | 3.13 | 3.45 | 3.56 | 3.76 | 3.49 | 3.10 | 2.71 | |||||||
| Johnson & Johnson | 2.46 | 2.48 | 2.52 | 2.54 | 2.53 | 2.46 | 2.44 | 2.33 | 2.55 | 2.77 | 2.44 | 2.35 | 2.33 | 2.39 | 2.46 | 2.55 | 2.54 | 2.62 | 2.76 | 2.65 | 2.51 | 2.53 | |||||||
| Merck & Co. Inc. | 2.40 | 2.38 | 2.53 | 2.64 | 2.58 | 2.62 | 2.84 | 2.59 | 2.70 | 2.30 | 2.37 | 2.41 | 2.48 | 2.61 | 2.77 | 2.61 | 2.72 | 3.37 | 3.62 | 3.08 | 3.28 | 3.24 | |||||||
| Pfizer Inc. | 2.32 | 2.30 | 2.42 | 2.38 | 2.47 | 2.40 | 2.54 | 2.22 | 2.22 | 1.94 | 2.06 | 2.10 | 2.24 | 2.23 | 2.35 | 2.37 | 2.43 | 2.31 | 2.44 | 2.74 | 2.77 | 2.56 | |||||||
| Regeneron Pharmaceuticals Inc. | 1.28 | 1.28 | 1.29 | 1.28 | 1.28 | 1.27 | 1.27 | 1.29 | 1.28 | 1.28 | 1.29 | 1.29 | 1.32 | 1.32 | 1.36 | 1.37 | 1.42 | 1.48 | 1.56 | 1.59 | 1.59 | 1.30 | |||||||
| Thermo Fisher Scientific Inc. | 2.00 | 2.01 | 1.96 | 2.05 | 2.08 | 2.13 | 2.11 | 2.14 | 2.15 | 2.24 | 2.21 | 2.08 | 2.14 | 2.26 | 2.33 | 1.90 | 1.84 | 1.88 | 2.00 | 2.01 | 2.06 | 2.05 | |||||||
| Vertex Pharmaceuticals Inc. | 1.40 | 1.39 | 1.37 | 1.42 | 1.36 | 1.29 | 1.29 | 1.32 | 1.32 | 1.31 | 1.30 | 1.28 | 1.31 | 1.31 | 1.33 | 1.32 | 1.33 | 1.35 | 1.35 | 1.39 | 1.36 | 1.38 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 87,897 ÷ 7,428 = 11.83
2 Click competitor name to see calculations.
- Total assets
- Total assets show fluctuations over the reported periods. Initially, assets increased from US$61,669 million in March 2020 to a peak around US$65,011 million in June 2020, then experienced a gradual decline through 2021, falling below US$60,000 million by March 2022. A significant surge occurred starting from March 2023, reaching a high of US$97,154 million by December 2023. Subsequently, total assets slightly decreased but stabilized around US$87,000 to US$90,000 million towards mid-2025.
- Stockholders’ equity
- Stockholders’ equity exhibited notable volatility. It started at US$9,485 million in March 2020, increased to a peak of US$10,959 million in September 2020, and then declined substantially through 2021, reaching a low point of US$6700 million in December 2021. A sharp drop is evident by March 2022, where equity dropped to US$916 million, followed by a slow recovery reaching US$7,656 million by September 2023. The equity value then fluctuated, generally ranging between approximately US$5,000 million and US$7,400 million from late 2023 through mid-2025, indicating instability in equity financing or accumulated earnings during these periods.
- Financial leverage
- Financial leverage ratios reflect significant changes corresponding with movements in equity and assets. Leverage was relatively stable and moderate during 2020 and early 2021, ranging roughly between 5.9 and 9.13. However, from late 2021 entering 2022, leverage surged dramatically, reaching an exceptionally high ratio of 64.62 by March 2022. This spike corresponds with the drastic fall in equity during the same period. Leverage then declined gradually but remained elevated, fluctuating between 11.83 and 18.51 through 2024 and into 2025. The elevated leverage ratios indicate increased reliance on debt or liabilities relative to equity, suggesting higher financial risk and potential concerns regarding capital structure stability over these periods.
Interest Coverage
Amgen Inc., interest coverage calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) | 1,432) | 1,730) | 627) | 2,830) | 746) | (113) | 767) | 1,730) | 1,379) | 2,841) | 1,616) | 2,143) | 1,317) | 1,476) | 1,899) | 1,884) | 464) | 1,646) | 1,615) | 2,021) | 1,803) | 1,825) | |||||||
| Add: Income tax expense | 136) | 243) | 155) | 271) | 48) | 45) | 85) | 217) | 235) | 601) | 132) | 249) | 214) | 199) | 232) | 271) | 94) | 211) | 262) | 185) | 227) | 195) | |||||||
| Add: Interest expense, net | 694) | 723) | 747) | 776) | 808) | 824) | 821) | 759) | 752) | 543) | 415) | 368) | 328) | 295) | 335) | 296) | 281) | 285) | 318) | 302) | 296) | 346) | |||||||
| Earnings before interest and tax (EBIT) | 2,262) | 2,696) | 1,529) | 3,877) | 1,602) | 756) | 1,673) | 2,706) | 2,366) | 3,985) | 2,163) | 2,760) | 1,859) | 1,970) | 2,466) | 2,451) | 839) | 2,142) | 2,195) | 2,508) | 2,326) | 2,366) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | 3.53 | 3.18 | 2.46 | 2.45 | 2.10 | 2.38 | 3.73 | 4.54 | 5.43 | 6.51 | 6.22 | 6.83 | 6.97 | 6.40 | 6.60 | 6.46 | 6.48 | 7.64 | 7.44 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Danaher Corp. | 15.01 | 16.80 | 17.71 | 16.11 | 17.61 | 17.81 | 18.64 | 23.66 | 29.65 | 35.60 | 40.30 | 41.32 | 35.26 | 33.54 | 32.92 | 28.74 | 25.87 | 21.54 | 17.35 | — | — | — | |||||||
| Gilead Sciences Inc. | 8.20 | 7.94 | 1.71 | 1.18 | 2.58 | 2.11 | 8.27 | 8.88 | 9.03 | 8.84 | 7.22 | 5.80 | 6.73 | 6.97 | 9.27 | 10.06 | 7.61 | 2.93 | 2.70 | — | — | — | |||||||
| Johnson & Johnson | 33.48 | 34.09 | 23.10 | 23.92 | 26.40 | 29.06 | 20.51 | 19.09 | 23.89 | 31.49 | 79.71 | 141.63 | 160.27 | 164.15 | 125.46 | 94.27 | 87.06 | 73.87 | 83.07 | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 134.19 | 105.27 | 87.59 | 79.88 | 69.47 | 57.85 | 58.52 | 61.70 | 69.61 | 73.97 | 82.80 | 108.62 | 116.35 | 163.24 | 163.75 | 139.74 | 104.12 | 68.20 | 67.97 | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 6.09 | 6.25 | 6.03 | 5.62 | 5.62 | 5.53 | 5.54 | 5.98 | 6.64 | 8.28 | 11.56 | 13.59 | 15.70 | 16.73 | 17.49 | 19.94 | 19.52 | 17.58 | 14.07 | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 258.29 | -11.94 | 9.12 | 7.76 | 6.14 | 111.61 | 100.32 | 96.54 | 90.90 | 82.27 | 78.23 | 70.08 | 66.72 | 48.17 | 45.40 | 44.83 | 40.33 | 55.95 | 54.60 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Interest coverage
= (EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024
+ EBITQ3 2024)
÷ (Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024
+ Interest expenseQ3 2024)
= (2,262 + 2,696 + 1,529 + 3,877)
÷ (694 + 723 + 747 + 776)
= 3.53
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values demonstrate considerable volatility across the periods analyzed. Initially, EBIT remained relatively stable between early 2020 and early 2021, fluctuating roughly between 2,100 and 2,500 million USD. However, a sharp decline occurred in the second quarter of 2021, followed by a significant recovery in the subsequent quarters of that year. The trend continues with oscillations through 2022 and early 2023, where a peak is observed in the first quarter of 2023, reaching approximately 3,985 million USD. Declines and recoveries occur again through late 2023 into early 2024, with the level dropping markedly in early 2024, increasing sharply in the third quarter of 2024, and falling thereafter into 2025. Overall, the EBIT trajectory indicates a pattern of sharp fluctuations rather than steady growth or decline.
- Interest expense, net
- Interest expense exhibits a gradual upward trend over the entire period. Starting at approximately 346 million USD in the first quarter of 2020, interest expense rises steadily, peaking around 824 million USD by the third quarter of 2024. Minor fluctuations occur in the later quarters, but the overall trajectory is an increase in interest expense. This suggests growing leverage or increased borrowing costs during the timeframe analyzed.
- Interest coverage ratio
- The interest coverage ratio shows a marked decline over the periods available. Early values, not fully detailed, indicate healthy coverage above 6 times EBIT to interest expense during 2020 and 2021 quarters. From 2021 onward, there is a steady decrease in this ratio, falling below 3 times in the period of late 2023 through 2025. This deterioration illustrates a reduced ability to cover interest expenses with operating earnings, potentially indicating increasing financial risk.