Stock Analysis on Net
Stock Analysis on Net

Illumina Inc. (NASDAQ:ILMN)

Analysis of Solvency Ratios

Microsoft Excel LibreOffice Calc

Solvency Ratios (Summary)

Illumina Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Debt Ratios
Debt to equity 0.25 0.25 0.53 0.49 0.58
Debt to equity (including operating lease liability) 0.41 0.41 0.53 0.49 0.58
Debt to capital 0.20 0.20 0.35 0.33 0.37
Debt to capital (including operating lease liability) 0.29 0.29 0.35 0.33 0.37
Debt to assets 0.16 0.16 0.29 0.25 0.30
Debt to assets (including operating lease liability) 0.25 0.26 0.29 0.25 0.30
Financial leverage 1.62 1.59 1.85 1.91 1.95
Coverage Ratios
Interest coverage 18.47 22.50 16.68 29.19 17.91
Fixed charge coverage 7.44 9.22 8.98 13.57 8.11

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

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

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Illumina Inc.’s interest coverage ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Illumina Inc.’s fixed charge coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Equity

Illumina Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Build-to-suit lease liability —  —  —  144  223 
Long-term debt, current portion 511  —  1,107  10 
Long-term debt, excluding current portion 673  1,141  890  1,182  1,048 
Total debt 1,184  1,141  1,997  1,336  1,272 
 
Total Illumina stockholders’ equity 4,694  4,613  3,758  2,749  2,197 
Solvency Ratio
Debt to equity1 0.25 0.25 0.53 0.49 0.58
Benchmarks
Debt to Equity, Competitors2
AbbVie Inc. 6.58 7.33 7.95
Amgen Inc. 3.51 3.09 2.71 1.40 1.16
Eli Lilly & Co. 2.94 5.88 1.30 1.18 0.74
Gilead Sciences Inc. 1.73 1.09 1.28 1.64 1.39
Johnson & Johnson 0.56 0.47 0.51 0.57 0.39
Merck & Co. Inc. 1.26 1.02 0.94 0.71 0.62
Moderna Inc. 0.05 0.03 0.03
Pfizer Inc. 0.63 0.83 0.66 0.61 0.71
Regeneron Pharmaceuticals Inc. 0.24 0.06 0.08 0.11 0.11
Thermo Fisher Scientific Inc. 0.63 0.60 0.69 0.83 0.77
Zoetis Inc. 1.91 2.38 2.95 2.80 3.00
Debt to Equity, Sector
Pharmaceuticals, Biotechnology & Life Sciences 1.20 1.20 1.05 0.95 0.84
Debt to Equity, Industry
Health Care 0.97 0.98 0.94 0.90 0.85

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Debt to equity = Total debt ÷ Total Illumina stockholders’ equity
= 1,184 ÷ 4,694 = 0.25

2 Click competitor name to see calculations.

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

Debt to Equity (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Build-to-suit lease liability —  —  —  144  223 
Long-term debt, current portion 511  —  1,107  10 
Long-term debt, excluding current portion 673  1,141  890  1,182  1,048 
Total debt 1,184  1,141  1,997  1,336  1,272 
Operating lease liabilities, current portion 51  45  —  —  — 
Operating lease liabilities, excluding current portion 671  695  —  —  — 
Total debt (including operating lease liability) 1,906  1,881  1,997  1,336  1,272 
 
Total Illumina stockholders’ equity 4,694  4,613  3,758  2,749  2,197 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.41 0.41 0.53 0.49 0.58
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
AbbVie Inc. 6.66 7.33 7.95
Amgen Inc. 3.55 3.15 2.71 1.40 1.16
Eli Lilly & Co. 3.06 6.11 1.30 1.18 0.74
Gilead Sciences Inc. 1.76 1.12 1.28 1.64 1.39
Johnson & Johnson 0.57 0.48 0.51 0.57 0.39
Merck & Co. Inc. 1.32 1.06 0.94 0.71 0.62
Moderna Inc. 0.09 0.12 0.03
Pfizer Inc. 0.65 0.85 0.66 0.61 0.71
Regeneron Pharmaceuticals Inc. 0.25 0.07 0.08 0.11 0.11
Thermo Fisher Scientific Inc. 0.65 0.62 0.69 0.83 0.77
Zoetis Inc. 1.96 2.45 2.95 2.80 3.00
Debt to Equity (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 1.24 1.23 1.05 0.95 0.84
Debt to Equity (including Operating Lease Liability), Industry
Health Care 1.03 1.05 0.94 0.90 0.85

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Illumina stockholders’ equity
= 1,906 ÷ 4,694 = 0.41

2 Click competitor name to see calculations.

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

Debt to Capital

Illumina Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Build-to-suit lease liability —  —  —  144  223 
Long-term debt, current portion 511  —  1,107  10 
Long-term debt, excluding current portion 673  1,141  890  1,182  1,048 
Total debt 1,184  1,141  1,997  1,336  1,272 
Total Illumina stockholders’ equity 4,694  4,613  3,758  2,749  2,197 
Total capital 5,878  5,754  5,755  4,085  3,469 
Solvency Ratio
Debt to capital1 0.20 0.20 0.35 0.33 0.37
Benchmarks
Debt to Capital, Competitors2
AbbVie Inc. 0.87 1.14 1.27 0.88 0.89
Amgen Inc. 0.78 0.76 0.73 0.58 0.54
Eli Lilly & Co. 0.75 0.85 0.57 0.54 0.42
Gilead Sciences Inc. 0.63 0.52 0.56 0.62 0.58
Johnson & Johnson 0.36 0.32 0.34 0.37 0.28
Merck & Co. Inc. 0.56 0.50 0.48 0.42 0.38
Moderna Inc. 0.05 0.03 0.03
Pfizer Inc. 0.39 0.45 0.40 0.38 0.41
Regeneron Pharmaceuticals Inc. 0.20 0.06 0.07 0.10 0.10
Thermo Fisher Scientific Inc. 0.39 0.37 0.41 0.45 0.44
Zoetis Inc. 0.66 0.70 0.75 0.74 0.75
Debt to Capital, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.55 0.55 0.51 0.49 0.46
Debt to Capital, Industry
Health Care 0.49 0.50 0.48 0.47 0.46

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 1,184 ÷ 5,878 = 0.20

2 Click competitor name to see calculations.

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

Debt to Capital (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Build-to-suit lease liability —  —  —  144  223 
Long-term debt, current portion 511  —  1,107  10 
Long-term debt, excluding current portion 673  1,141  890  1,182  1,048 
Total debt 1,184  1,141  1,997  1,336  1,272 
Operating lease liabilities, current portion 51  45  —  —  — 
Operating lease liabilities, excluding current portion 671  695  —  —  — 
Total debt (including operating lease liability) 1,906  1,881  1,997  1,336  1,272 
Total Illumina stockholders’ equity 4,694  4,613  3,758  2,749  2,197 
Total capital (including operating lease liability) 6,600  6,494  5,755  4,085  3,469 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.29 0.29 0.35 0.33 0.37
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
AbbVie Inc. 0.87 1.14 1.27 0.88 0.89
Amgen Inc. 0.78 0.76 0.73 0.58 0.54
Eli Lilly & Co. 0.75 0.86 0.57 0.54 0.42
Gilead Sciences Inc. 0.64 0.53 0.56 0.62 0.58
Johnson & Johnson 0.36 0.33 0.34 0.37 0.28
Merck & Co. Inc. 0.57 0.51 0.48 0.42 0.38
Moderna Inc. 0.08 0.10 0.03
Pfizer Inc. 0.39 0.46 0.40 0.38 0.41
Regeneron Pharmaceuticals Inc. 0.20 0.06 0.07 0.10 0.10
Thermo Fisher Scientific Inc. 0.40 0.38 0.41 0.45 0.44
Zoetis Inc. 0.66 0.71 0.75 0.74 0.75
Debt to Capital (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.55 0.55 0.51 0.49 0.46
Debt to Capital (including Operating Lease Liability), Industry
Health Care 0.51 0.51 0.48 0.47 0.46

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 1,906 ÷ 6,600 = 0.29

2 Click competitor name to see calculations.

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

Debt to Assets

Illumina Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Build-to-suit lease liability —  —  —  144  223 
Long-term debt, current portion 511  —  1,107  10 
Long-term debt, excluding current portion 673  1,141  890  1,182  1,048 
Total debt 1,184  1,141  1,997  1,336  1,272 
 
Total assets 7,585  7,316  6,959  5,257  4,281 
Solvency Ratio
Debt to assets1 0.16 0.16 0.29 0.25 0.30
Benchmarks
Debt to Assets, Competitors2
AbbVie Inc. 0.57 0.75 0.68 0.53 0.56
Amgen Inc. 0.52 0.50 0.51 0.44 0.45
Eli Lilly & Co. 0.36 0.39 0.29 0.30 0.27
Gilead Sciences Inc. 0.46 0.40 0.43 0.48 0.46
Johnson & Johnson 0.20 0.18 0.20 0.22 0.19
Merck & Co. Inc. 0.35 0.31 0.30 0.28 0.26
Moderna Inc. 0.02 0.02 0.02
Pfizer Inc. 0.26 0.31 0.26 0.25 0.25
Regeneron Pharmaceuticals Inc. 0.16 0.05 0.06 0.08 0.07
Thermo Fisher Scientific Inc. 0.31 0.30 0.34 0.37 0.36
Zoetis Inc. 0.53 0.56 0.60 0.58 0.58
Debt to Assets, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.36 0.36 0.33 0.33 0.32
Debt to Assets, Industry
Health Care 0.32 0.33 0.33 0.33 0.32

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 1,184 ÷ 7,585 = 0.16

2 Click competitor name to see calculations.

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

Debt to Assets (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Build-to-suit lease liability —  —  —  144  223 
Long-term debt, current portion 511  —  1,107  10 
Long-term debt, excluding current portion 673  1,141  890  1,182  1,048 
Total debt 1,184  1,141  1,997  1,336  1,272 
Operating lease liabilities, current portion 51  45  —  —  — 
Operating lease liabilities, excluding current portion 671  695  —  —  — 
Total debt (including operating lease liability) 1,906  1,881  1,997  1,336  1,272 
 
Total assets 7,585  7,316  6,959  5,257  4,281 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.25 0.26 0.29 0.25 0.30
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
AbbVie Inc. 0.58 0.75 0.68 0.53 0.56
Amgen Inc. 0.53 0.51 0.51 0.44 0.45
Eli Lilly & Co. 0.37 0.41 0.29 0.30 0.27
Gilead Sciences Inc. 0.47 0.41 0.43 0.48 0.46
Johnson & Johnson 0.21 0.18 0.20 0.22 0.19
Merck & Co. Inc. 0.37 0.32 0.30 0.28 0.26
Moderna Inc. 0.03 0.09 0.02
Pfizer Inc. 0.27 0.32 0.26 0.25 0.25
Regeneron Pharmaceuticals Inc. 0.16 0.05 0.06 0.08 0.07
Thermo Fisher Scientific Inc. 0.33 0.32 0.34 0.37 0.36
Zoetis Inc. 0.54 0.58 0.60 0.58 0.58
Debt to Assets (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.37 0.37 0.33 0.33 0.32
Debt to Assets (including Operating Lease Liability), Industry
Health Care 0.35 0.36 0.33 0.33 0.32

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 1,906 ÷ 7,585 = 0.25

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Illumina Inc.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020.

Financial Leverage

Illumina Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Total assets 7,585  7,316  6,959  5,257  4,281 
Total Illumina stockholders’ equity 4,694  4,613  3,758  2,749  2,197 
Solvency Ratio
Financial leverage1 1.62 1.59 1.85 1.91 1.95
Benchmarks
Financial Leverage, Competitors2
AbbVie Inc. 11.51 13.89 14.26
Amgen Inc. 6.69 6.17 5.31 3.17 2.60
Eli Lilly & Co. 8.27 15.07 4.47 3.88 2.77
Gilead Sciences Inc. 3.76 2.74 2.98 3.44 3.02
Johnson & Johnson 2.76 2.65 2.56 2.61 2.01
Merck & Co. Inc. 3.62 3.26 3.09 2.56 2.38
Moderna Inc. 2.86 1.35 1.28
Pfizer Inc. 2.44 2.65 2.51 2.41 2.88
Regeneron Pharmaceuticals Inc. 1.56 1.34 1.34 1.43 1.57
Thermo Fisher Scientific Inc. 2.00 1.97 2.04 2.23 2.13
Zoetis Inc. 3.61 4.26 4.93 4.85 5.14
Financial Leverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 3.39 3.36 3.13 2.88 2.67
Financial Leverage, Industry
Health Care 2.97 2.94 2.86 2.76 2.65

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Financial leverage = Total assets ÷ Total Illumina stockholders’ equity
= 7,585 ÷ 4,694 = 1.62

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Illumina Inc.’s financial leverage ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

Interest Coverage

Illumina Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to Illumina stockholders 656  1,002  826  726  463 
Add: Net income attributable to noncontrolling interest —  (12) (44) (48) (35)
Add: Income tax expense 200  128  112  365  133 
Add: Interest expense 49  52  57  37  33 
Earnings before interest and tax (EBIT) 905  1,170  951  1,080  594 
Solvency Ratio
Interest coverage1 18.47 22.50 16.68 29.19 17.91
Benchmarks
Interest Coverage, Competitors2
AbbVie Inc. 2.38 5.72 4.86 7.72 8.53
Amgen Inc. 7.44 8.09 7.86 8.36 8.27
Eli Lilly & Co. 21.11 14.15 14.95 10.77 19.22
Gilead Sciences Inc. 2.70 6.19 8.24 13.10 18.74
Johnson & Johnson 83.07 55.49 18.91 19.92 28.28
Merck & Co. Inc. 11.58 13.84 12.27 9.65 7.72
Moderna Inc. -74.31 -76.85 -123.16
Pfizer Inc. 6.17 12.23 10.03 10.69 8.04
Regeneron Pharmaceuticals Inc. 67.97 81.43 91.55 83.75 185.82
Thermo Fisher Scientific Inc. 14.07 7.02 5.89 5.10 5.31
Zoetis Inc. 9.64 9.08 9.20 9.71 8.40
Interest Coverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 8.86 11.12 9.96 11.10 12.20
Interest Coverage, Industry
Health Care 7.14 8.51 7.90 9.26 9.81

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 905 ÷ 49 = 18.47

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Illumina Inc.’s interest coverage ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Fixed Charge Coverage

Illumina Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to Illumina stockholders 656  1,002  826  726  463 
Add: Net income attributable to noncontrolling interest —  (12) (44) (48) (35)
Add: Income tax expense 200  128  112  365  133 
Add: Interest expense 49  52  57  37  33 
Earnings before interest and tax (EBIT) 905  1,170  951  1,080  594 
Add: Operating lease costs 84  84  55  46  46 
Earnings before fixed charges and tax 989  1,254  1,006  1,126  640 
 
Interest expense 49  52  57  37  33 
Operating lease costs 84  84  55  46  46 
Fixed charges 133  136  112  83  79 
Solvency Ratio
Fixed charge coverage1 7.44 9.22 8.98 13.57 8.11
Benchmarks
Fixed Charge Coverage, Competitors2
AbbVie Inc. 2.28 5.42 4.44 6.86 7.54
Amgen Inc. 6.48 7.12 7.13 7.56 7.57
Eli Lilly & Co. 15.06 10.18 8.66 5.89 9.31
Gilead Sciences Inc. 2.45 5.46 7.58 12.26 17.36
Johnson & Johnson 33.93 28.72 14.46 14.53 19.75
Merck & Co. Inc. 8.47 10.31 8.95 7.03 5.73
Moderna Inc. -26.75 -20.79 -8.26
Pfizer Inc. 4.98 9.88 8.34 8.76 6.64
Thermo Fisher Scientific Inc. 10.30 5.60 4.72 4.07 4.11
Zoetis Inc. 8.21 7.85 7.73 8.55 7.43
Fixed Charge Coverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 7.24 9.08 8.21 9.06 9.88
Fixed Charge Coverage, Industry
Health Care 5.26 6.30 6.02 6.86 7.22

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 989 ÷ 133 = 7.44

2 Click competitor name to see calculations.

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