Comcast Corp. (NASDAQ:CMCSA)

The solvency position, as indicated by the presented metrics, demonstrates a period of increasing leverage followed by a stabilization and slight improvement. Generally, the company maintained a moderate to high level of debt relative to its equity and capital structure throughout the analyzed period.

Debt Ratios

Debt to equity, both with and without the inclusion of operating lease liabilities, increased from 2021 to 2022 before stabilizing in 2022 and 2023. A modest decrease in these ratios is observed in 2024 and 2025, suggesting a slight de-leveraging. The inclusion of operating lease liabilities consistently results in higher debt ratios, highlighting the impact of these obligations on the company’s overall debt profile. Debt to capital ratios follow a similar pattern, increasing initially and then remaining relatively stable before a slight decline. Debt to assets ratios also show a similar trend, remaining relatively flat between 2022 and 2024, with a minor decrease in 2025.

Leverage Ratios

Financial leverage increased from 2021 to 2023, peaking at 3.20, and then decreased slightly in 2024 and 2025. This indicates a period of increased reliance on debt financing, followed by a marginal reduction in that reliance. The trend mirrors the changes observed in the debt-to-equity ratios.

Coverage Ratios

Interest coverage decreased significantly from 2021 to 2022, indicating a reduced ability to meet interest obligations with earnings. However, it rebounded strongly in 2023 and continued to improve through 2025, suggesting enhanced earnings relative to interest expense. Fixed charge coverage exhibited a similar pattern, with a decline in 2022 followed by consistent improvement through 2025. The increasing trend in both coverage ratios suggests a strengthening capacity to meet broader fixed financial obligations.

In summary, the company experienced a period of increased leverage between 2021 and 2023, but subsequently demonstrated a trend towards stabilization and slight improvement in its solvency position from 2023 to 2025, as evidenced by decreasing debt ratios and improving coverage ratios.

The Debt-to-Equity ratio exhibits fluctuations over the five-year period. Initially, the ratio was nearly one, then increased before stabilizing and subsequently decreasing. This suggests a shifting reliance on debt versus equity financing.

Debt-to-Equity Ratio - Overall Trend

The Debt-to-Equity ratio began at 0.99 in 2021. It increased to 1.17 in 2022 and remained at that level through 2023. A slight decrease to 1.16 was observed in 2024, followed by a more pronounced decrease to 1.02 in 2025. This indicates an initial increase in financial leverage, followed by a period of stability, and then a reduction in leverage.

Debt-to-Equity Ratio - 2021-2022

From 2021 to 2022, the ratio increased from 0.99 to 1.17. This rise coincided with a decrease in Total Comcast Corporation shareholders’ equity, while Total debt remained relatively stable. The increase suggests the company financed operations or investments with more debt relative to equity during this period.

Debt-to-Equity Ratio - 2022-2024

Between 2022 and 2024, the ratio remained relatively consistent, fluctuating between 1.16 and 1.17. Total debt experienced a modest increase, while Total Comcast Corporation shareholders’ equity showed a slight upward trend. This suggests a balanced approach to capital structure during these years.

Debt-to-Equity Ratio - 2024-2025

The ratio decreased from 1.16 in 2024 to 1.02 in 2025. This decline was driven by a substantial increase in Total Comcast Corporation shareholders’ equity, coupled with a minor decrease in Total debt. This indicates a strengthening of the equity base relative to debt, potentially improving the company’s financial flexibility.

The observed trend suggests a dynamic capital structure management strategy. The initial increase in leverage was followed by a period of stability and then a move towards a more equity-focused financing approach.

The Debt to Equity ratio, including operating lease liability, exhibited fluctuations over the five-year period. Total debt, inclusive of operating leases, generally increased, while shareholders’ equity experienced a more volatile pattern. This resulted in a changing leverage profile for the company.

Debt to Equity Ratio - Overall Trend

The Debt to Equity ratio increased from 1.06 in 2021 to 1.26 in 2022, indicating a rise in financial leverage. It remained relatively stable at 1.25 in 2023 and decreased slightly to 1.23 in 2024. A notable decrease to 1.08 was observed in 2025, suggesting a reduction in leverage during that year.

Total Debt

Total debt, including operating lease liability, demonstrated a modest increase overall, rising from US$102,089 million in 2021 to US$105,413 million in 2024. A slight decrease to US$105,033 million was recorded in 2025. This suggests a consistent, though not dramatic, reliance on debt financing.

Shareholders’ Equity

Shareholders’ equity experienced a significant decline from US$96,092 million in 2021 to US$80,943 million in 2022. It then showed a recovery, increasing to US$82,703 million in 2023 and US$85,560 million in 2024, before a more substantial increase to US$96,903 million in 2025. This volatility in equity likely influenced the fluctuations in the Debt to Equity ratio.

The decrease in the Debt to Equity ratio in 2025 coincides with the largest increase in shareholders’ equity over the observed period, indicating that equity growth contributed to the improved leverage position. The initial increase in the ratio from 2021 to 2022 was primarily driven by the decrease in shareholders’ equity.

The Debt to Capital ratio exhibits a generally stable pattern over the five-year period, with some fluctuation. Initial values indicate an increase in leverage, followed by a period of consistency, and a slight decrease towards the end of the observed timeframe.

Debt to Capital Ratio - Overall Trend

The ratio increased from 0.50 in 2021 to 0.54 in 2022, suggesting a greater reliance on debt financing relative to capital. This level was maintained through 2023 and 2024. A slight decrease to 0.51 is observed in 2025, indicating a modest reduction in the proportion of debt used to finance assets.

Debt to Capital Ratio - Year-over-Year Changes

The most significant year-over-year change occurred between 2021 and 2022, with an increase of 0.04. Subsequent annual changes were minimal, remaining within a range of 0.00 to 0.01. The decrease from 2024 to 2025 was also 0.01, mirroring the change observed between 2022 and 2023.

Debt and Capital Components

Total debt remained relatively stable, fluctuating between US$94.85 billion and US$99.09 billion. Total capital experienced a decrease in 2022, followed by a gradual increase through 2025. The interplay between these two components drives the observed trend in the Debt to Capital ratio.

The consistency in the Debt to Capital ratio from 2022 to 2024 suggests a deliberate management strategy to maintain a specific capital structure. The slight decline in 2025 could indicate a shift towards reducing financial leverage or an increase in equity financing.

The Debt to Capital ratio, inclusive of operating lease liabilities, exhibits a fluctuating pattern over the five-year period. Initially, the ratio increased before stabilizing and then decreasing slightly. Total debt, including operating lease liability, generally increased over the period, though with a minor decrease in the final year presented. Total capital, inclusive of operating lease liability, demonstrated a more volatile pattern, decreasing in 2022 before increasing in subsequent years.

Debt to Capital Ratio Trend

The Debt to Capital ratio began at 0.52 in 2021, increasing to 0.56 in 2022. It remained at 0.56 in 2023, then decreased slightly to 0.55 in 2024, and concluded at 0.52 in 2025. This suggests a period of increased leverage followed by stabilization and a modest reduction in reliance on debt financing relative to capital.

Total Debt (including operating lease liability) Trend

Total debt, including operating lease liability, experienced a slight decrease from US$102,089 million in 2021 to US$101,593 million in 2022. It then increased to US$103,676 million in 2023 and further to US$105,413 million in 2024. A minor decrease was observed in the final year, with total debt reaching US$105,033 million in 2025.

Total Capital (including operating lease liability) Trend

Total capital, inclusive of operating lease liability, decreased from US$198,181 million in 2021 to US$182,536 million in 2022. Subsequent years saw increases, reaching US$186,379 million in 2023, US$190,973 million in 2024, and US$201,936 million in 2025. This indicates a recovery and expansion of the company’s capital base following the initial decline.

The interplay between the debt and capital trends suggests that while the company increased its overall debt, it also expanded its capital base, ultimately leading to a stabilization and slight reduction in the Debt to Capital ratio by the end of the observed period.

The Debt-to-Assets ratio exhibits a generally stable pattern over the five-year period, with a slight increase initially followed by stabilization and a minor decrease. This indicates a consistent, though not dramatically changing, reliance on debt financing relative to the company’s asset base.

Debt-to-Assets Ratio Trend

In 2021, the ratio stood at 0.34. It increased to 0.37 in 2022 and remained at that level through 2023 and 2024. A slight decrease to 0.36 is observed in 2025. This suggests an initial increase in financial leverage, followed by a period of consistent leverage, and then a marginal reduction.

The consistency of the ratio from 2022 to 2024 suggests the company maintained a relatively stable capital structure during those years. The slight decline in 2025 could indicate a deliberate effort to reduce debt or an increase in asset values, or a combination of both. However, the change is minimal and may not represent a significant shift in the company’s financial risk profile.

Total Debt

Total debt remained relatively stable between 2021 and 2025, fluctuating between US$94.85 billion and US$99.09 billion. The modest increase in debt between 2021 and 2024 was largely offset by the slight decrease in 2025.

Total Assets

Total assets experienced a decrease from US$275.91 billion in 2021 to US$257.28 billion in 2022. Subsequently, assets showed a gradual increase, reaching US$272.63 billion in 2025. This asset growth in the later years likely contributed to the stabilization and eventual slight decrease in the Debt-to-Assets ratio.

Overall, the Debt-to-Assets ratio suggests a moderate level of financial leverage that has remained relatively consistent over the observed period. The minor fluctuations do not appear to indicate a substantial change in the company’s risk posture.

The Debt to Assets ratio, including operating lease liability, exhibits a generally increasing trend over the five-year period. While fluctuations occur, the ratio demonstrates a move towards greater reliance on debt financing relative to the company’s asset base.

Overall Trend

The ratio increased from 0.37 in 2021 to 0.40 in 2024, before decreasing slightly to 0.39 in 2025. This indicates a growing proportion of assets financed by debt over most of the observed period.

Year-over-Year Changes

From 2021 to 2022, the ratio rose from 0.37 to 0.39, representing a 5.4% increase. A similar increase occurred between 2022 and 2023, with the ratio remaining at 0.39. The most significant increase was observed between 2023 and 2024, where the ratio climbed to 0.40. Finally, a slight decrease of 1.5% was noted from 2024 to 2025, bringing the ratio back to 0.39.

Debt and Asset Movements

Total debt, including operating lease liability, remained relatively stable between 2021 and 2023, with a slight increase in 2024 and a minor decrease in 2025. Total assets decreased in 2022, then increased in 2023, 2024, and 2025. The combined effect of these movements contributed to the observed trend in the Debt to Assets ratio. The asset decrease in 2022, coupled with relatively stable debt, drove the initial ratio increase. Subsequent asset growth, while present, did not fully offset the increases in debt, resulting in continued ratio elevation through 2024.

The consistency of the ratio around 0.39-0.40 in the latter years suggests a stabilization of the company’s capital structure, although the level represents a higher degree of financial leverage than observed in 2021.

An examination of the financial information reveals trends in the company’s financial leverage over a five-year period. Total assets experienced a decrease from 2021 to 2022, followed by increases in subsequent years, ultimately reaching 272,631 US$ in millions by 2025. Total shareholders’ equity also decreased from 2021 to 2022, then showed incremental increases through 2025, concluding at 96,903 US$ in millions. The financial leverage ratio, which indicates the extent to which the company relies on debt financing, exhibited fluctuations during the period.

Financial Leverage

The financial leverage ratio increased from 2.87 in 2021 to 3.18 in 2022, suggesting a greater reliance on debt relative to equity. This trend continued modestly into 2023, reaching 3.20. A slight decrease was observed in 2024, with the ratio falling to 3.11. By 2025, the ratio had decreased further to 2.81, indicating a reduction in financial leverage compared to the peak levels observed in 2022 and 2023. This suggests a potential shift in the company’s capital structure towards greater equity financing or debt reduction during the latter part of the analyzed period.

The interplay between total assets and shareholders’ equity influences the financial leverage ratio. The initial decrease in equity coupled with a decrease in assets contributed to the rise in leverage in 2022. Subsequent increases in both assets and equity, particularly the more substantial increase in equity in the later years, appear to have contributed to the observed decline in the leverage ratio towards the end of the period.

Overall, the company demonstrated a fluctuating, but ultimately decreasing, trend in financial leverage between 2021 and 2025. While leverage increased initially, it subsequently moderated, suggesting a potential strengthening of the company’s financial position from a debt perspective.

The period under review demonstrates fluctuations in the company’s ability to meet its interest obligations. Earnings before interest and tax (EBIT) and interest expense both exhibit variability, impacting the interest coverage ratio accordingly.

Earnings Before Interest and Tax (EBIT)

EBIT decreased significantly from 2021 to 2022, falling from US$23,374 million to US$13,180 million. A substantial recovery was then observed in 2023, with EBIT reaching US$24,565 million. This upward trend continued, albeit at a slower pace, to US$22,807 million in 2024, before accelerating to US$30,175 million in 2025. This indicates improving operational profitability over the latter part of the analyzed period.

Interest Expense

Interest expense remained relatively stable between 2021 and 2024, fluctuating between US$3,896 million and US$4,281 million. A moderate increase was noted in 2025, with interest expense rising to US$4,409 million. This suggests a consistent, though slightly increasing, cost of borrowing.

Interest Coverage Ratio

The interest coverage ratio mirrored the trends in EBIT. It declined from 5.46 in 2021 to a low of 3.38 in 2022, reflecting the decrease in EBIT and relatively stable interest expense. The ratio improved considerably to 6.01 in 2023, coinciding with the recovery in EBIT. It remained at a healthy level of 5.52 in 2024 and further strengthened to 6.84 in 2025, indicating a growing capacity to cover interest obligations with earnings. The ratio consistently remained above 3.0, suggesting a generally adequate ability to service debt.

Overall, the company experienced a period of reduced profitability in 2022, which impacted its interest coverage. However, subsequent years demonstrate a strong recovery in earnings, leading to a strengthened ability to meet its interest obligations. The increasing EBIT and stable interest expense contribute to a positive outlook regarding solvency.

The company’s fixed charge coverage exhibited volatility over the five-year period. Earnings before fixed charges and tax, and fixed charges themselves, both demonstrate fluctuations, impacting the overall coverage ratio.

Earnings Before Fixed Charges and Tax

Earnings before fixed charges and tax decreased significantly from 2021 to 2022, falling from US$24,574 million to US$14,380 million. A substantial recovery occurred in 2023, with earnings rising to US$25,765 million. This level was maintained relatively consistently in 2024 at US$24,007 million, before increasing further to US$31,375 million in 2025. This indicates a strengthening earnings position in the latter part of the analyzed period.

Fixed Charges

Fixed charges remained relatively stable between 2021 and 2024, fluctuating between US$5,096 million and US$5,481 million. A moderate increase was observed in 2025, with fixed charges reaching US$5,609 million. The consistency in fixed charges suggests a predictable debt and lease obligation structure.

Fixed Charge Coverage Ratio

The fixed charge coverage ratio mirrored the earnings trend. It declined from 4.48 in 2021 to a low of 2.82 in 2022, coinciding with the decrease in earnings. The ratio improved considerably to 4.87 in 2023, reflecting the earnings recovery. It remained at 4.50 in 2024, and then increased to 5.59 in 2025, indicating a strengthened ability to meet fixed obligations. The ratio consistently remained above 2.82, suggesting the company generally possesses sufficient earnings to cover its fixed charges, though the 2022 value warrants attention.

Overall, the company demonstrated an improving capacity to cover its fixed charges, particularly in the later years of the period. The significant earnings decline in 2022 negatively impacted the coverage ratio, but subsequent recovery and growth in earnings led to a stronger coverage position by 2025.