Moderna Inc. (NASDAQ:MRNA)

The financial ratios reflect several noteworthy trends over the five-year period under review. The debt-related ratios indicate a relatively low and stable level of leverage with minor fluctuations.

Debt to equity

The debt to equity ratio remained very low, starting at 0.03 in 2019 and slightly increasing to 0.06 in 2022 before declining again to 0.04 in 2023. This suggests that the company maintained minimal reliance on debt compared to equity throughout the period.

Debt to equity (including operating lease liability)

When including operating lease liabilities, the ratio started higher at 0.12 in 2019, decreased steadily to 0.06 by 2021 and 2022, and then increased again to 0.09 in 2023, indicating some variability in lease obligations impacting overall leverage.

Debt to capital

The debt to capital ratio mirrored the debt to equity trend, consistently low between 0.03 and 0.05, suggesting a stable capital structure with limited use of debt instruments.

Debt to capital (including operating lease liability)

This ratio showed a similar pattern as the debt to equity including leases, declining from 0.10 in 2019 to 0.06 in 2021 and 2022, then rising to 0.08 in 2023, underscoring the influence of operating leases on the company's capital structure.

Debt to assets

The debt to assets ratio remained consistently low, slightly increasing from 0.02 in 2019 to a peak of 0.04 in 2022, then falling back to 0.03 in 2023, which aligns with the low leverage profile indicated by other metrics.

Debt to assets (including operating lease liability)

This ratio began at 0.09 in 2019, dropped sharply to 0.03 in 2020, and increased gradually to 0.07 by 2023, highlighting that lease liabilities notably affect the asset leverage assessment.

Financial leverage

Financial leverage showed significant variation, with a high of 2.86 in 2020, suggesting increased use of debt relative to equity in that year. However, this figure declined markedly in subsequent years to approximately 1.33-1.35, indicating a reduction in leverage and a more conservative equity position towards the end of the period.

Interest coverage

The interest coverage ratio exhibited extreme volatility. It was deeply negative in 2019 and 2020 (around -75), dramatically surged to a very high positive level in 2021 (739.06), decreased but remained positive in 2022 (331.17), then reverted to negative in 2023 (-102.74). These swings suggest erratic earnings before interest and taxes relative to interest obligations, possibly reflecting significant fluctuations in profitability or non-recurring items.

Fixed charge coverage

This metric followed a pattern similar to interest coverage, deeply negative in 2019 and 2020, improving substantially to a positive peak in 2021 (317.31) and 2022 (125.35), before declining back to a negative figure in 2023 (-30.29). The movement implies changing ability to cover fixed financial obligations through operating earnings, mirroring the irregular profitability or cost structure over time.

In summary, the company maintained generally low debt levels and conservative leverage throughout the period. However, the significant volatility in coverage ratios indicates fluctuations in operational earnings relative to financial costs, which may warrant further investigation into the factors driving such swings in profitability and financial risk.

Total Debt

The total debt shows a significant upward trend from 2019 to 2022, increasing from 39 million USD in 2019 to a peak of 1,073 million USD in 2022. However, in 2023, there is a notable decrease in total debt to 575 million USD, indicating a possible strategic reduction in leverage or repayment of liabilities during that year.

Stockholders’ Equity

Stockholders’ equity has experienced substantial growth over the examined period. Starting at 1,175 million USD in 2019, it more than doubled by 2020 to 2,561 million USD and then surged dramatically to 14,145 million USD in 2021. This upward trend continues with equity reaching 19,123 million USD in 2022 before slightly declining to 13,854 million USD in 2023. The slight decrease in 2023 may indicate distributions to shareholders, losses, or other equity changes during that year.

Debt to Equity Ratio

The debt to equity ratio remains relatively low throughout the period, indicating a conservative leverage position. Starting at 0.03 in 2019, it slightly increases to 0.05 in 2020 and remains stable at 0.05 in 2021. The ratio peaks modestly at 0.06 in 2022, coinciding with the highest total debt and equity figures. In 2023, the ratio declines to 0.04, reflecting the reduction in debt and the decrease in equity. Overall, the ratio suggests that equity substantially exceeds debt, maintaining a low leverage level.

The analysis of the financial data reveals several noteworthy trends over the five-year period.

Total debt (including operating lease liability)

The total debt has exhibited a significant upward trend from 136 million US dollars in 2019 to 1,243 million US dollars in 2023. The most substantial increase occurred between 2020 and 2021, where debt rose sharply from 238 million to 916 million US dollars. After this surge, the debt continued to increase but at a slower rate, reaching 1,200 million in 2022 and slightly increasing to 1,243 million in 2023.

Stockholders’ equity

Stockholders’ equity showed considerable growth, particularly between 2020 and 2021, when it increased dramatically from 2,561 million to 14,145 million US dollars. The upward trend continued in 2022, reaching a peak of 19,123 million US dollars, followed by a decline to 13,854 million US dollars in 2023. Despite the decrease in the last year reported, equity remains substantially higher compared to the initial years.

Debt to equity (including operating lease liability)

The debt-to-equity ratio remained relatively low and stable throughout the period, fluctuating between 0.06 and 0.12. It decreased from 0.12 in 2019 to a low of 0.06 in 2021 and 2022, indicating a stronger equity base relative to debt. In 2023, there was a slight increase to 0.09, consistent with the observed decrease in equity and the marginal increase in debt.

Overall, the company appears to have significantly increased both its debt and equity levels over the period, with equity expanding at a faster rate initially, leading to a declining debt-to-equity ratio. However, the recent data show a modest reversal with equity decreasing and debt stabilizing at a high level. This could imply a shift in capital structure or changes in financial strategy during the most recent year.

Total Debt

The total debt experienced a significant increase from 39 million US dollars at the end of 2019 to 764 million US dollars by the end of 2021. This upward trend continued into 2022, reaching a peak of 1,073 million US dollars, before decreasing to 575 million US dollars as of the end of 2023. This indicates a substantial rise in debt during the initial years, followed by a notable reduction in the last reported year.

Total Capital

Total capital showed a marked upward trend from 1,213 million US dollars at the end of 2019 to a peak of 20,196 million US dollars in 2022. However, in 2023, total capital decreased to 14,429 million US dollars. Despite this recent reduction, the capital level in 2023 remains significantly higher than in previous years, suggesting substantial overall growth in the company's capital base over the analyzed period.

Debt to Capital Ratio

The debt to capital ratio remained relatively stable over the period, fluctuating slightly between 0.03 and 0.05. It started at 0.03 in 2019, increased to 0.05 from 2020 through 2022, and then decreased to 0.04 in 2023. This indicates that while total debt and capital values have changed considerably, the relative proportion of debt in the company’s capital structure has been maintained within a narrow range, implying a consistent approach to leverage management.

The financial data reveals several notable trends regarding the company's debt and capital structure over the five-year period ending December 31, 2023.

Total debt (including operating lease liability)

This metric shows a significant increase over the observed period. Starting from 136 million US dollars in 2019, total debt rose to 238 million in 2020 and then experienced a sharp rise to 916 million by the end of 2021. The upward trend continued but at a slower pace, reaching 1,200 million in 2022 and then 1,243 million in 2023. The data indicates a substantial debt accumulation mainly between 2020 and 2021, followed by stabilization at a higher level.

Total capital (including operating lease liability)

Total capital also increased substantially from 1,311 million US dollars in 2019 to 2,799 million in 2020. A notable spike occurred in 2021 when capital more than quintupled to 15,061 million, continuing to increase to 20,323 million in 2022. However, in 2023, total capital declined to 15,097 million, indicating a partial reversal of the previous year's gains. This pattern suggests a period of aggressive capital expansion mostly occurring between 2020 and 2022, followed by a contraction in 2023.

Debt to capital ratio (including operating lease liability)

The ratio of debt to capital decreased from 0.10 in 2019 to 0.08 in 2020, then further declined to 0.06 in 2021, remaining stable through 2022. However, in 2023, the ratio increased again to 0.08. This fluctuating ratio implies that although both debt and capital levels grew significantly, capital increased at a faster rate initially, improving the debt-to-capital position until 2022. The rise in the ratio in 2023 reflects the decrease in total capital combined with a slight increase in debt, indicating a shift towards a higher leverage position.

In summary, the data suggests a strong expansion phase characterized by considerable increases in both total debt and capital through 2021 and 2022. The company's capital base expanded at a much faster rate than debt during this period, leading to improved leverage ratios. However, the partial reversal in capital in 2023 alongside a marginal increase in debt indicates a relative increase in leverage, which may warrant closer monitoring going forward.

The financial data indicates that total debt increased markedly from 39 million USD in 2019 to a peak of 1,073 million USD in 2022, before decreasing significantly to 575 million USD in 2023. This suggests a strategy of taking on substantial debt over the 2019-2022 period, followed by debt reduction efforts in the most recent year.

Total assets followed an upward trajectory from 1,589 million USD in 2019 to a high of 25,858 million USD in 2022, reflecting strong asset growth. However, in 2023 total assets declined to 18,426 million USD, indicating a possible asset liquidation or revaluation occurring in that year.

The debt to assets ratio remained relatively low and stable despite the fluctuations in absolute debt and asset values. It was 0.02 in 2019 and 2020, rose slightly to 0.03 in 2021, moved up further to 0.04 in 2022, and then decreased back to 0.03 in 2023. This indicates that although debt levels increased substantially through 2022, total assets grew proportionally, keeping leverage at a moderate level. The decline in the ratio in 2023 correlates with the reduction in total debt outpacing the decrease in assets.

Overall, these trends reflect increased financing via debt during 2020-2022 supporting substantial asset growth, followed by a period of deleveraging and asset reduction in 2023. The company maintained relatively conservative leverage ratios throughout the period, suggesting prudent financial management despite significant changes in scale.

The financial data reveals several notable trends in the company's capital structure and asset base over the five-year period.

Total Debt (including operating lease liability)

The total debt showed a significant increase from 136 million USD in 2019 to a peak of 1,200 million USD in 2022, followed by a slight increase to 1,243 million USD in 2023. This represents a nearly ninefold increase over the five-year span, indicating a substantial rise in the company's leverage or financing activities.

Total Assets

Total assets expanded dramatically from 1,589 million USD in 2019 to 25,858 million USD by 2022, marking an increase of over sixteen times. However, there was a decline to 18,426 million USD in 2023, which suggests a contraction or revaluation of assets after reaching the peak in the previous year.

Debt to Assets Ratio (including operating lease liability)

Despite the increases in absolute debt figures, the debt to assets ratio remained relatively low and stable, fluctuating between 0.03 and 0.09. This low ratio implies that while the company increased its debt, asset growth kept pace sufficiently to preserve a conservative leverage position. The ratio increased from 0.03 in 2020 to 0.07 in 2023, indicating a gradual increase in financial leverage toward the end of the period.

In summary, the company exhibited rapid asset growth up to 2022, accompanied by a sharp rise in total debt. However, asset levels decreased in 2023 while debt slightly increased, resulting in a moderate rise in leverage as reflected in the debt to assets ratio. Overall, the data suggest an aggressive expansion phase followed by a partial contraction and a cautious but increasing use of debt financing.

Total Assets

Total assets increased substantially from 2019 to 2021, rising from 1,589 million USD to 24,669 million USD. This represents a significant growth phase during that period. In 2022, total assets continued to grow slightly to 25,858 million USD, reaching a peak. However, in 2023, total assets declined markedly to 18,426 million USD, indicating a contraction relative to the prior two years.

Stockholders’ Equity

Stockholders’ equity followed a somewhat parallel trend to total assets. It grew from 1,175 million USD in 2019 to 14,145 million USD in 2021, signifying strong capital growth. The equity further increased to 19,123 million USD in 2022. However, in 2023, there was a noticeable reduction to 13,854 million USD, which suggests a reversal in retained earnings or capital changes during that year.

Financial Leverage

The financial leverage ratio showed variability over the period. Starting at 1.35 in 2019, it sharply increased to 2.86 in 2020, indicating a higher reliance on debt or liabilities relative to equity during that year. Subsequently, leverage decreased to 1.74 in 2021 and then further declined to levels close to the initial value, 1.35 in 2022 and 1.33 in 2023. This trend reflects a reduction in financial risk or a shift towards a more equity-funded capital structure after the spike in 2020.

Overall Analysis

The data reflects a period of rapid growth in total assets and equity primarily between 2019 and 2022, followed by a notable decline in these figures in 2023. The peak in 2022 suggests the company reached a high point in asset accumulation and capital base before downsizing or reconfiguring its balance sheet in the subsequent year. The financial leverage trend implies a temporary increase in debt usage in 2020, which diminished in the following years, possibly indicating strategic deleveraging or capital restructuring. Such patterns could be associated with changing market conditions, operational developments, or financing decisions impacting the company's financial position.

Earnings before interest and tax (EBIT)

The EBIT values displayed a significant fluctuation over the five-year period. The company experienced substantial losses in 2019 and 2020, with EBIT of -508 million and -735 million US dollars respectively. A remarkable improvement occurred in 2021, where EBIT surged to a positive 13,303 million US dollars, indicating a strong operational performance. However, this was followed by a decline in 2022, with EBIT falling to 9,604 million US dollars, though still positive. In 2023, EBIT returned to a negative figure of -3,904 million US dollars, reflecting a considerable downturn in earnings before interest and tax.

Interest Expense

Interest expense showed a steady increasing trend throughout the analyzed period. Starting from a relatively low base of 7 million US dollars in 2019, it increased incrementally each year reaching 38 million US dollars in 2023. This consistent rise suggests growing financial costs, possibly due to increased borrowings or higher interest rates on existing debt.

Interest Coverage Ratio

The interest coverage ratio exhibited pronounced volatility. It was substantially negative in 2019 and 2020 at -76.85 and -74.31 respectively, reflecting an inability to cover interest expenses through operating earnings during those years. In 2021, the ratio improved dramatically to 739.06, indicating an exceptional capacity to meet interest obligations comfortably. This ability weakened in 2022, declining to 331.17 but remaining well above the critical threshold. The situation deteriorated considerably in 2023, with the ratio dropping back to -102.74, again reflecting insufficient earnings to cover interest costs and potential financial distress.

Overall Analysis

The financial performance over the period reveals a company that faced losses initially, achieved a period of highly profitable operations in the middle years, and then experienced a notable return to losses by the end of the period. Interest expenses consistently increased, exerting upward pressure on financial charges. The interest coverage ratio aligns with EBIT trends, showing strong coverage in 2021 and 2022 but negative coverage in 2019, 2020, and 2023, which highlights periods of operational and financial challenges. The data suggests volatility in operational efficiency and financial health, with particular concern regarding the negative EBIT and interest coverage ratio in the latest year.

Earnings before fixed charges and tax

The earnings before fixed charges and tax exhibited a significant turnaround over the analyzed periods. Initially, the company reported substantial negative results in 2019 and 2020, with losses deepening from -491 million USD to -718 million USD. A marked improvement occurred in 2021, with earnings rising sharply to 13,327 million USD, signaling a strong positive shift. This upward momentum somewhat diminished in 2022, with earnings decreasing to 9,652 million USD, yet remaining robust. However, in 2023, a reversal occurred as earnings fell back into negative territory at -3,816 million USD.

Fixed charges

Fixed charges displayed a consistent upward trend throughout the period. Starting from 24 million USD in 2019, the charges increased gradually each year, reaching 126 million USD by 2023. This steady rise reflects growing financial obligations or increased costs associated with fixed expenditures.

Fixed charge coverage ratio

The fixed charge coverage ratio mirrored the fluctuations observed in earnings before fixed charges and tax. The ratio was deeply negative in 2019 and 2020, indicating insufficient earnings to cover fixed charges, with values of -20.79 and -26.75 respectively. In 2021, the ratio soared dramatically to 317.31, consistent with the surge in earnings. Although it decreased to 125.35 in 2022, it remained strongly positive, suggesting an ample ability to cover fixed charges. In 2023, the ratio dropped sharply to -30.29, reflecting a return to inadequate earnings relative to fixed charges.