Debt to Equity
since 2005
Calculation
Celgene Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2018 | 3.29 | = | 20,270) | ÷ | 6,161) |
| Dec 31, 2017 | 2.29 | = | 15,838) | ÷ | 6,921) |
| Dec 31, 2016 | 2.17 | = | 14,289) | ÷ | 6,599) |
| Dec 31, 2015 | 2.41 | = | 14,250) | ÷ | 5,919) |
| Dec 31, 2014 | 1.05 | = | 6,872) | ÷ | 6,525) |
| Dec 31, 2013 | 0.85 | = | 4,741) | ÷ | 5,590) |
| Dec 31, 2012 | 0.54 | = | 3,080) | ÷ | 5,694) |
| Dec 31, 2011 | 0.33 | = | 1,802) | ÷ | 5,513) |
| Dec 31, 2010 | 0.21 | = | 1,248) | ÷ | 5,984) |
| Dec 31, 2009 | 0.00 | = | —) | ÷ | 4,395) |
| Dec 31, 2008 | 0.00 | = | —) | ÷ | 3,491) |
| Dec 31, 2007 | 0.07 | = | 197) | ÷ | 2,844) |
| Dec 31, 2006 | 0.20 | = | 400) | ÷ | 1,976) |
| Dec 31, 2005 | 0.63 | = | 400) | ÷ | 636) |
Based on: 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), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The capital structure transitioned from a conservative, equity-funded model to a highly leveraged position between 2005 and 2018. This trajectory is characterized by an initial phase of deleveraging followed by a prolonged and accelerating increase in total debt relative to stockholders' equity.
- Initial Deleveraging Phase (2005–2007)
- A significant reduction in financial leverage occurred during this period. Total debt decreased from 400 million USD in 2005 to 197 million USD in 2007, while stockholders' equity grew substantially from 636 million USD to 2,844 million USD. Consequently, the debt-to-equity ratio declined from 0.63 to a low of 0.07, indicating a strong reliance on equity and a minimal debt burden.
- Moderate Leverage Expansion (2010–2013)
- Starting in 2010, a trend of increasing borrowing emerged. Total debt rose steadily from 1,248 million USD in 2010 to 4,741 million USD in 2013. During this timeframe, stockholders' equity remained relatively stable, fluctuating between 5,513 million USD and 5,984 million USD. This imbalance led to a steady increase in the debt-to-equity ratio, which climbed from 0.21 to 0.85.
- Rapid Leverage Escalation (2014–2018)
- The most aggressive expansion of debt occurred in the final five years of the analysis. Total debt increased exponentially, rising from 6,872 million USD in 2014 to 20,270 million USD in 2018. While stockholders' equity experienced limited growth and eventually contracted to 6,161 million USD by 2018, the debt load continued to surge. As a result, the debt-to-equity ratio spiked from 1.05 in 2014 to 3.29 in 2018, reflecting a fundamental shift toward a highly leveraged capital structure.
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Comparison to Competitors
Celgene Corp., debt to equity, long-term trends, comparison to competitors
| Celgene Corp. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2018 | 3.29 | — | 2.71 | 0.52 | 0.35 | 1.30 | 1.28 | 0.51 | 0.94 | 0.66 | 0.08 | 0.69 | 0.13 |
| Dec 31, 2017 | 2.29 | 7.33 | 1.40 | 0.68 | 0.40 | 1.18 | 1.64 | 0.57 | 0.71 | 0.60 | 0.11 | 0.83 | 0.29 |
| Dec 31, 2016 | 2.17 | 7.95 | 1.16 | 0.41 | 0.53 | 0.74 | 1.39 | 0.39 | 0.62 | 0.71 | 0.11 | 0.77 | 0.71 |
| Dec 31, 2015 | 2.41 | 8.03 | 1.12 | 0.47 | 0.54 | 0.55 | 1.20 | 0.28 | 0.59 | 0.60 | 0.10 | 0.59 | 0.86 |
| Dec 31, 2014 | 1.05 | 8.62 | 1.19 | 0.53 | 0.15 | 0.52 | 0.80 | 0.27 | 0.44 | 0.51 | 0.18 | 0.71 | 0.75 |
| Dec 31, 2013 | 0.85 | 3.28 | 1.45 | 0.55 | 0.16 | 0.30 | 0.58 | 0.25 | 0.50 | 0.48 | 0.26 | 0.62 | 0.36 |
| Dec 31, 2012 | 0.54 | 4.66 | 1.39 | 0.54 | 0.28 | 0.37 | 0.88 | 0.25 | 0.39 | 0.46 | 0.37 | 0.46 | 0.68 |
| Dec 31, 2011 | 0.33 | — | 1.13 | 0.34 | 0.31 | 0.52 | 1.13 | 0.34 | 0.32 | 0.47 | 0.90 | 0.47 | 0.58 |
| Dec 31, 2010 | 0.21 | — | 0.56 | 0.35 | 0.21 | 0.56 | 0.59 | 0.30 | 0.33 | 0.50 | 0.31 | 0.14 | 1.07 |
| Dec 31, 2009 | 0.00 | — | 0.47 | 0.43 | 0.25 | 0.70 | 0.18 | 0.29 | 0.30 | 0.54 | 0.27 | 0.14 | 0.14 |
| Dec 31, 2008 | 0.00 | — | 0.50 | 0.55 | 0.27 | 1.55 | 0.31 | 0.28 | 0.33 | 0.30 | 0.00 | 0.14 | 1.20 |
| Dec 31, 2007 | 0.07 | — | 0.63 | 0.59 | 0.41 | 0.37 | 0.38 | 0.22 | 0.32 | 0.20 | 0.43 | 0.15 | 0.07 |
| Dec 31, 2006 | 0.20 | — | 0.48 | 0.74 | 0.37 | 0.34 | 0.77 | 0.17 | 0.39 | 0.11 | 0.92 | 0.19 | 0.24 |
| Dec 31, 2005 | 0.63 | — | 0.19 | 0.77 | 0.21 | 0.60 | 0.10 | 0.07 | 0.45 | 0.27 | 1.75 | 0.21 | 0.75 |
Based on: 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), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Celgene Corp., debt to equity, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Celgene Corp. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2018 | 3.29 | 0.93 |
| Dec 31, 2017 | 2.29 | 0.87 |
| Dec 31, 2016 | 2.17 | 0.79 |
| Dec 31, 2015 | 2.41 | 0.68 |
| Dec 31, 2014 | 1.05 | 0.55 |
| Dec 31, 2013 | 0.85 | 0.52 |
| Dec 31, 2012 | 0.54 | 0.51 |
| Dec 31, 2011 | 0.33 | 0.46 |
| Dec 31, 2010 | 0.21 | 0.40 |
| Dec 31, 2009 | 0.00 | 0.39 |
| Dec 31, 2008 | 0.00 | 0.37 |
| Dec 31, 2007 | 0.07 | 0.30 |
| Dec 31, 2006 | 0.20 | 0.25 |
| Dec 31, 2005 | 0.63 | 0.29 |
Based on: 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), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Celgene Corp., debt to equity, long-term trends, comparison to industry (health care)
| Celgene Corp. | Health Care | |
|---|---|---|
| Dec 31, 2018 | 3.29 | 0.80 |
| Dec 31, 2017 | 2.29 | 0.82 |
| Dec 31, 2016 | 2.17 | 0.77 |
| Dec 31, 2015 | 2.41 | 0.69 |
| Dec 31, 2014 | 1.05 | 0.54 |
| Dec 31, 2013 | 0.85 | 0.50 |
| Dec 31, 2012 | 0.54 | 0.54 |
| Dec 31, 2011 | 0.33 | 0.47 |
| Dec 31, 2010 | 0.21 | 0.43 |
| Dec 31, 2009 | 0.00 | 0.42 |
| Dec 31, 2008 | 0.00 | 0.42 |
| Dec 31, 2007 | 0.07 | 0.36 |
| Dec 31, 2006 | 0.20 | 0.32 |
| Dec 31, 2005 | 0.63 | 0.30 |
Based on: 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), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).