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: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
The solvency profile exhibits a significant reduction in leverage and a strengthening of the balance sheet over the analyzed period. There is a notable transition from high initial leverage ratios to a more conservative capital structure, although interest coverage experienced a period of volatility before beginning a recovery phase.
- Debt to Equity and Financial Leverage
- A sharp downward trend is observed in both ratios starting from March 2022. The debt to equity ratio decreased from 40.23 to 6.24 by March 2026, while financial leverage dropped from 64.62 to 10.07 in the same timeframe. This indicates a substantial shift in the financing mix, suggesting either a significant reduction in total debt or a considerable increase in shareholder equity.
- Debt to Capital and Debt to Assets
- These ratios remained relatively stable compared to leverage metrics. The debt to capital ratio fluctuated within a narrow range, moving from 0.98 to 0.86. Similarly, the debt to assets ratio remained consistent, starting at 0.62, peaking at 0.69 in March 2024, and returning to 0.62 by March 2026. This stability suggests that while the relationship between debt and equity shifted, the overall proportion of debt relative to total assets and total capital remained largely constant.
- Interest Coverage
- A U-shaped trend is evident in the interest coverage ratio. Initially strong, peaking at 6.97 in June 2022, the ratio entered a steady decline, reaching a minimum of 2.10 in June 2024. This contraction suggests a period of increased interest expenses or diminished operating income. However, a recovery trend emerged thereafter, with the ratio climbing back to 4.38 by March 2026, indicating an improving capacity to meet interest obligations.
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Debt Ratios
Coverage Ratios
Debt to Equity
Amgen Inc., debt to equity calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt | 5,437) | 4,599) | 2,153) | 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) | ||||||
| Long-term debt, excluding current portion | 51,886) | 50,005) | 52,434) | 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) | ||||||
| Total debt | 57,323) | 54,604) | 54,587) | 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) | ||||||
| Stockholders’ equity | 9,190) | 8,658) | 9,619) | 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) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | 6.24 | 6.31 | 5.67 | 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 | ||||||
| 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 | ||||||
| Bristol-Myers Squibb Co. | 2.22 | 2.44 | 2.64 | 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 | ||||||
| Danaher Corp. | 0.35 | 0.35 | 0.33 | 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 | ||||||
| Eli Lilly & Co. | 1.39 | 1.60 | 1.79 | 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 | ||||||
| Gilead Sciences Inc. | 0.94 | 1.10 | 1.16 | 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 | ||||||
| Johnson & Johnson | 0.68 | 0.59 | 0.58 | 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 | ||||||
| Merck & Co. Inc. | 1.07 | 0.94 | 0.80 | 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 | ||||||
| Pfizer Inc. | 0.72 | 0.75 | 0.66 | 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 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.09 | 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 | ||||||
| Thermo Fisher Scientific Inc. | 0.83 | 0.74 | 0.70 | 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 | ||||||
| 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 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 57,323 ÷ 9,190 = 6.24
2 Click competitor name to see calculations.
The analysis of solvency metrics reveals a significant structural shift in the capital composition between March 2022 and March 2026. The most prominent characteristic is the substantial reduction in the debt-to-equity ratio, which declined from a peak of 40.23 to 6.24 over the analyzed period.
- Total Debt Dynamics
- Debt levels remained relatively stable throughout 2022 before experiencing a sharp increase in the first quarter of 2023, rising from 38,945 million USD in December 2022 to 61,595 million USD in March 2023. Following a peak of 64,613 million USD in December 2023, a gradual deleveraging trend emerged, with total debt descending to approximately 54,604 million USD by December 2025, before a slight increase to 57,323 million USD in March 2026.
- Stockholders' Equity Growth
- Equity exhibited a strong and consistent upward trajectory. Starting from a low base of 916 million USD in March 2022, equity expanded significantly, surpassing 5,000 million USD by March 2023 and reaching a peak of 9,619 million USD in September 2025. This expansion of the equity base served as a primary driver in improving the company's solvency position.
- Debt-to-Equity Ratio Trends
- The ratio experienced an immediate and drastic contraction during 2022, dropping from 40.23 to 10.64. Between 2023 and 2024, the ratio fluctuated between 7.90 and 12.75, reflecting the simultaneous increase in total debt and stockholders' equity. In the final stages of the analyzed period, a sustained downward trend is observed, with the ratio reaching its lowest point of 5.67 in September 2025 before stabilizing at 6.24 by March 2026.
Overall, the data indicates a transition from a highly leveraged position toward a more balanced capital structure. The combination of strategic debt management and significant equity accumulation has fundamentally reduced the debt-to-equity ratio, indicating a strengthened solvency profile over the observed quarterly sequence.
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Debt to Capital
Amgen Inc., debt to capital calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt | 5,437) | 4,599) | 2,153) | 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) | ||||||
| Long-term debt, excluding current portion | 51,886) | 50,005) | 52,434) | 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) | ||||||
| Total debt | 57,323) | 54,604) | 54,587) | 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) | ||||||
| Stockholders’ equity | 9,190) | 8,658) | 9,619) | 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) | ||||||
| Total capital | 66,513) | 63,262) | 64,206) | 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) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | 0.86 | 0.86 | 0.85 | 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 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | 1.10 | 1.05 | 1.04 | 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 | ||||||
| Bristol-Myers Squibb Co. | 0.69 | 0.71 | 0.73 | 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 | ||||||
| Danaher Corp. | 0.26 | 0.26 | 0.25 | 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 | ||||||
| Eli Lilly & Co. | 0.58 | 0.62 | 0.64 | 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 | ||||||
| Gilead Sciences Inc. | 0.49 | 0.52 | 0.54 | 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 | ||||||
| Johnson & Johnson | 0.40 | 0.37 | 0.37 | 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 | ||||||
| Merck & Co. Inc. | 0.52 | 0.48 | 0.44 | 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 | ||||||
| Pfizer Inc. | 0.42 | 0.43 | 0.40 | 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 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.08 | 0.08 | 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 | ||||||
| Thermo Fisher Scientific Inc. | 0.45 | 0.42 | 0.41 | 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 | ||||||
| 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 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 57,323 ÷ 66,513 = 0.86
2 Click competitor name to see calculations.
A review of the solvency metrics reveals a period of significant capital restructuring followed by a gradual deleveraging phase. The most prominent shift occurred between December 31, 2022, and March 31, 2023, characterized by a substantial increase in both total debt and total capital, suggesting a major financing event or strategic acquisition during the first quarter of 2023.
- Total Debt Trajectory
- Absolute debt levels remained relatively stable through 2022, fluctuating between 36.5 billion and 38.9 billion US dollars. A sharp escalation was recorded in March 2023, with debt rising to 61.6 billion US dollars. This elevated level was maintained through 2023 and early 2024, peaking at 64.6 billion US dollars in December 2023. Starting in mid-2024, a consistent downward trend emerged, with total debt decreasing to 54.6 billion US dollars by December 2025, before a slight increase to 57.3 billion US dollars in March 2026.
- Total Capital Evolution
- Total capital mirrored the movement of total debt, jumping from 42.6 billion US dollars in December 2022 to 66.9 billion US dollars in March 2023. Capitalization reached its maximum value of 70.8 billion US dollars in December 2023. Following this peak, total capital exhibited a gradual decline throughout 2024 and 2025, reaching a low of 63.3 billion US dollars in December 2025, before rising again to 66.5 billion US dollars by March 2026.
- Debt to Capital Ratio Analysis
- The debt to capital ratio began at a high of 0.98 in March 2022 and trended downward to 0.91 by the end of that year. Despite the massive influx of debt in early 2023, the ratio remained remarkably stable, fluctuating within a narrow band between 0.89 and 0.93 for approximately two years. This indicates that the increase in debt was proportionally matched by an increase in total capital. A period of improvement in the solvency profile is observable from June 2024 through September 2025, where the ratio declined from 0.91 to its lowest point of 0.85. The period concluded with the ratio stabilizing at 0.86 in early 2026.
Overall, the analysis indicates a strategic expansion of the balance sheet in early 2023, followed by a disciplined reduction of leverage. The decline in the debt to capital ratio over the latter half of the observed period suggests an intentional effort to strengthen the solvency position by reducing the reliance on debt relative to the total capital base.
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Debt to Assets
Amgen Inc., debt to assets calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt | 5,437) | 4,599) | 2,153) | 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) | ||||||
| Long-term debt, excluding current portion | 51,886) | 50,005) | 52,434) | 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) | ||||||
| Total debt | 57,323) | 54,604) | 54,587) | 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) | ||||||
| Total assets | 92,504) | 90,586) | 90,141) | 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) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | 0.62 | 0.60 | 0.61 | 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 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | 0.53 | 0.50 | 0.51 | 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 | ||||||
| Bristol-Myers Squibb Co. | 0.51 | 0.50 | 0.51 | 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 | ||||||
| Danaher Corp. | 0.22 | 0.22 | 0.21 | 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 | ||||||
| Eli Lilly & Co. | 0.37 | 0.38 | 0.37 | 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 | ||||||
| Gilead Sciences Inc. | 0.39 | 0.42 | 0.43 | 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 | ||||||
| Johnson & Johnson | 0.27 | 0.24 | 0.24 | 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 | ||||||
| Merck & Co. Inc. | 0.38 | 0.36 | 0.32 | 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 | ||||||
| Pfizer Inc. | 0.31 | 0.31 | 0.30 | 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 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.07 | 0.07 | 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 | ||||||
| Thermo Fisher Scientific Inc. | 0.38 | 0.36 | 0.35 | 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 | ||||||
| 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 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 57,323 ÷ 92,504 = 0.62
2 Click competitor name to see calculations.
The solvency profile of the organization underwent a significant structural shift starting in the first quarter of 2023, marked by a substantial increase in both total debt and total assets. Following this period of expansion, a consistent deleveraging trend is observed through 2024 and 2025, resulting in a gradual restoration of the debt-to-assets ratio to levels observed in early 2022.
- Capital Structure Expansion
- Between December 31, 2022, and March 31, 2023, total debt rose sharply from 38,945 million USD to 61,595 million USD. This increase coincided with a surge in total assets from 65,121 million USD to 88,720 million USD, suggesting a large-scale financed acquisition or strategic capital investment. This event shifted the debt-to-assets ratio from a baseline of approximately 0.60 to a peak of 0.69.
- Solvency Ratio Volatility
- The debt-to-assets ratio remained elevated throughout 2023 and the first half of 2024, fluctuating between 0.67 and 0.69. This indicates a period of sustained higher leverage relative to the asset base. The peak ratio of 0.69 was maintained through June 30, 2024, reflecting a period where debt accumulation or retention outpaced asset growth.
- Deleveraging Trend
- A steady downward trajectory in the debt-to-assets ratio is evident from June 30, 2024, through December 31, 2025. Total debt decreased from 62,645 million USD to 54,604 million USD during this window. By December 31, 2025, the ratio returned to 0.60, matching the solvency level recorded in December 2022, indicating a successful reduction of liabilities relative to the company's total asset holdings.
- Recent Capital Movements
- As of March 31, 2026, a slight reversal in the deleveraging trend is observed. Total debt increased to 57,323 million USD and total assets rose to 92,504 million USD, resulting in a marginal increase of the debt-to-assets ratio to 0.62. This suggests a modest increase in leveraged financing to support asset growth in the most recent quarter.
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Financial Leverage
Amgen Inc., financial leverage calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Total assets | 92,504) | 90,586) | 90,141) | 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) | ||||||
| Stockholders’ equity | 9,190) | 8,658) | 9,619) | 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) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | 10.07 | 10.46 | 9.37 | 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 | ||||||
| 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 | ||||||
| Bristol-Myers Squibb Co. | 4.31 | 4.87 | 5.22 | 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 | ||||||
| Danaher Corp. | 1.58 | 1.59 | 1.56 | 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 | ||||||
| Eli Lilly & Co. | 3.74 | 4.24 | 4.83 | 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 | ||||||
| Gilead Sciences Inc. | 2.39 | 2.60 | 2.72 | 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 | ||||||
| Johnson & Johnson | 2.47 | 2.44 | 2.43 | 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 | ||||||
| Merck & Co. Inc. | 2.80 | 2.60 | 2.50 | 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 | ||||||
| Pfizer Inc. | 2.30 | 2.41 | 2.25 | 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 | ||||||
| Regeneron Pharmaceuticals Inc. | 1.30 | 1.30 | 1.30 | 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 | ||||||
| Thermo Fisher Scientific Inc. | 2.18 | 2.07 | 2.02 | 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 | ||||||
| Vertex Pharmaceuticals Inc. | 1.37 | 1.37 | 1.44 | 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 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 92,504 ÷ 9,190 = 10.07
2 Click competitor name to see calculations.
The analyzed period reflects a significant shift in the capital structure, characterized by a transition from extreme financial leverage to a more stable and conservative solvency position. A marked expansion in both the asset base and stockholders' equity has contributed to a substantial reduction in the financial leverage ratio over the observed timeframe.
- Total Assets Trend
- Total assets exhibited a strong upward trajectory, rising from 59,196 million USD in March 2022 to a peak of 97,154 million USD by December 2023. A particularly sharp increase occurred between December 2022 and March 2023, where assets grew by approximately 36%. Following this peak, the asset base stabilized, fluctuating within the 87,000 to 92,000 million USD range through March 2026.
- Stockholders' Equity Growth
- A consistent and substantial increase in stockholders' equity is observed, starting from a low of 916 million USD in March 2022 and reaching 9,190 million USD by March 2026. Although the growth was not linear—with notable contractions in December 2023 and December 2024—the overall trend indicates a significant strengthening of the equity cushion, which grew more than tenfold over the period.
- Financial Leverage Analysis
- The financial leverage ratio underwent a dramatic decline, falling from a peak of 64.62 in March 2022 to 10.07 by March 2026. The most aggressive deleveraging occurred in the first half of 2022, with the ratio dropping from 64.62 to 17.44 by September 2022. From 2023 onward, the ratio remained relatively stable, generally oscillating between 9.37 and 18.51. This trend indicates a strategic reduction in the reliance on debt relative to equity, significantly lowering the company's financial risk profile.
The correlation between the surge in stockholders' equity and the precipitous drop in the financial leverage ratio suggests a deliberate deleveraging process. The stability of the leverage ratio in the final two years indicates that the capital structure has reached a new equilibrium, supporting a more sustainable solvency position.
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Interest Coverage
Amgen Inc., interest coverage calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income (loss) | 1,819) | 1,333) | 3,216) | 1,432) | 1,730) | 627) | 2,830) | 746) | (113) | 767) | 1,730) | 1,379) | 2,841) | 1,616) | 2,143) | 1,317) | 1,476) | ||||||
| Add: Income tax expense | 265) | 181) | 705) | 136) | 243) | 155) | 271) | 48) | 45) | 85) | 217) | 235) | 601) | 132) | 249) | 214) | 199) | ||||||
| Add: Interest expense, net | 657) | 653) | 685) | 694) | 723) | 747) | 776) | 808) | 824) | 821) | 759) | 752) | 543) | 415) | 368) | 328) | 295) | ||||||
| Earnings before interest and tax (EBIT) | 2,741) | 2,167) | 4,606) | 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) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | 4.38 | 4.26 | 3.89 | 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 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Danaher Corp. | 17.95 | 16.97 | 16.41 | 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 | ||||||
| Gilead Sciences Inc. | 11.68 | 10.57 | 10.71 | 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 | ||||||
| Johnson & Johnson | 25.00 | 34.55 | 36.24 | 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 | ||||||
| Regeneron Pharmaceuticals Inc. | 108.44 | 120.42 | 123.21 | 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 | ||||||
| Thermo Fisher Scientific Inc. | 6.03 | 6.12 | 6.19 | 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 | ||||||
| Vertex Pharmaceuticals Inc. | 502.52 | 350.11 | 348.55 | 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 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Interest coverage
= (EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025)
÷ (Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025)
= (2,741 + 2,167 + 4,606 + 2,262)
÷ (657 + 653 + 685 + 694)
= 4.38
2 Click competitor name to see calculations.
The solvency profile exhibits three distinct phases: a period of high stability, a significant contraction in coverage capacity, and a gradual recovery trend. The interest coverage ratio transitioned from a peak of 6.97 in June 2022 to a trough of 2.10 in June 2024, before rebounding to 4.38 by March 2026.
- Earnings Before Interest and Tax (EBIT) Volatility
- Earnings demonstrate substantial quarterly fluctuations. A notable decline occurred in the first quarter of 2024, where EBIT dropped to 756 million, the lowest point in the observed period. This was followed by a strong recovery, characterized by peaks in September 2024 (3,877 million) and September 2025 (4,606 million), indicating a volatile but ultimately upward trajectory in operating profitability.
- Net Interest Expense Trends
- Interest obligations experienced a steady upward climb from March 2022 (295 million) through December 2023 (821 million). This increasing cost of debt peaked in March 2024 at 824 million. Subsequently, a consistent downward trend is observed, with expenses decreasing to 653 million by December 2025, suggesting either a reduction in total debt or a refinancing into lower-interest instruments.
- Interest Coverage Ratio Dynamics
- The coverage ratio underwent a sharp compression between March 2023 and June 2024. This deterioration was the result of a dual pressure: rising net interest expenses coupled with declining EBIT. The ratio fell from 6.51 to 2.10, significantly narrowing the margin of safety for debt servicing. However, from June 2024 onward, the ratio entered a recovery phase, climbing steadily back to 4.38 by March 2026. This improvement was driven by the simultaneous increase in operating earnings and the reduction of net interest costs.
The overall trend indicates that while the company experienced a period of heightened financial leverage risk in early 2024, the subsequent improvement in operating margins and the reduction in interest outflows have restored a more robust solvency position.
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