Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Moderna Inc., solvency ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The solvency profile is characterized by a very low reliance on debt financing and significant volatility in earnings-based coverage ratios. Overall debt levels relative to equity and assets have remained minimal and stable over the five-year period, while coverage ratios reflect a sharp cyclical shift in operational profitability.
- Debt and Capital Structure
- Debt to equity and debt to capital ratios remained consistently low, fluctuating within a narrow range between 0.03 and 0.06. Even when incorporating operating lease liabilities, the debt to equity ratio peaked at 0.12 in 2019 and remained below 0.10 throughout the observed period. Debt to assets also remained marginal, peaking at 0.04 in 2022, indicating that the asset base is primarily funded through equity rather than borrowed capital.
- Financial Leverage
- A notable peak in financial leverage occurred in 2020, reaching 2.86. This was followed by a steady decline and stabilization, with the ratio returning to 1.33 by December 31, 2023. This trend suggests a temporary expansion of the balance sheet or a shift in asset utilization that was later corrected to a baseline level consistent with 2019 figures.
- Coverage Ratios
- Interest and fixed charge coverage ratios exhibit extreme volatility. Both metrics were deeply negative in 2019 and 2020, indicating an inability to cover interest and fixed obligations from operating income. A dramatic reversal occurred in 2021, with interest coverage surging to 739.06 and fixed charge coverage to 317.31. Although these ratios remained high in 2022, they returned to negative values in 2023, with interest coverage dropping to -102.74 and fixed charge coverage to -30.29, signaling a return to operational losses that preclude the coverage of fixed financial obligations from current earnings.
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Debt to Equity
Moderna Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Financing lease liabilities, current | —) | 161) | 165) | 24) | —) | |
| Financing lease liabilities, non-current | 575) | 912) | 599) | 110) | 39) | |
| Total debt | 575) | 1,073) | 764) | 134) | 39) | |
| Stockholders’ equity | 13,854) | 19,123) | 14,145) | 2,561) | 1,175) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.04 | 0.06 | 0.05 | 0.05 | 0.03 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | 5.73 | 3.67 | 4.98 | — | — | |
| Amgen Inc. | 10.37 | 10.64 | 4.97 | — | — | |
| Bristol-Myers Squibb Co. | 1.35 | 1.27 | 1.24 | — | — | |
| Danaher Corp. | 0.34 | 0.39 | 0.49 | — | — | |
| Eli Lilly & Co. | 2.34 | 1.52 | 1.88 | — | — | |
| Gilead Sciences Inc. | 1.09 | 1.19 | 1.27 | — | — | |
| Johnson & Johnson | 0.43 | 0.52 | 0.46 | — | — | |
| Merck & Co. Inc. | 0.93 | 0.67 | 0.87 | — | — | |
| Pfizer Inc. | 0.81 | 0.37 | 0.50 | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.10 | 0.12 | 0.14 | — | — | |
| Thermo Fisher Scientific Inc. | 0.75 | 0.78 | 0.85 | — | — | |
| Vertex Pharmaceuticals Inc. | 0.02 | 0.03 | 0.06 | — | — | |
| Debt to Equity, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.97 | 0.80 | 0.93 | — | — | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.82 | 0.72 | 0.80 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 575 ÷ 13,854 = 0.04
2 Click competitor name to see calculations.
Analysis of the solvency profile indicates a highly conservative approach to leverage from 2019 through 2023. Despite significant fluctuations in the absolute values of both liabilities and equity, the company maintained a consistently low reliance on borrowed capital relative to its equity base.
- Total Debt Trends
- An upward trajectory in total debt was observed between 2019 and 2022, increasing from US$ 39 million to a peak of US$ 1,073 million. This growth was followed by a significant reduction in 2023, where total debt decreased to US$ 575 million, representing a substantial decline from the previous year's peak.
- Stockholders' Equity Dynamics
- Stockholders' equity exhibited exponential expansion, rising from US$ 1,175 million in 2019 to a peak of US$ 19,123 million in 2022. A contraction was recorded in 2023, with equity falling to US$ 13,854 million. The scale of equity growth significantly outpaced the growth of debt during the primary expansionary period.
- Debt to Equity Ratio Interpretation
- The debt-to-equity ratio remained remarkably stable, oscillating within a narrow range between 0.03 and 0.06. The peak ratio of 0.06 in 2022 indicates that even at the highest level of borrowing, the equity cushion remained dominant. The subsequent decrease to 0.04 in 2023 confirms a sustained state of low financial leverage and strong solvency.
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Debt to Equity (including Operating Lease Liability)
Moderna Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Financing lease liabilities, current | —) | 161) | 165) | 24) | —) | |
| Financing lease liabilities, non-current | 575) | 912) | 599) | 110) | 39) | |
| Total debt | 575) | 1,073) | 764) | 134) | 39) | |
| Operating lease liabilities, current | 25) | 35) | 46) | 6) | 4) | |
| Operating lease liabilities, non-current | 643) | 92) | 106) | 97) | 94) | |
| Total debt (including operating lease liability) | 1,243) | 1,200) | 916) | 238) | 136) | |
| Stockholders’ equity | 13,854) | 19,123) | 14,145) | 2,561) | 1,175) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.09 | 0.06 | 0.06 | 0.09 | 0.12 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 5.82 | 3.72 | 5.03 | — | — | |
| Amgen Inc. | 10.50 | 10.83 | 5.07 | — | — | |
| Bristol-Myers Squibb Co. | 1.41 | 1.31 | 1.27 | — | — | |
| Danaher Corp. | 0.37 | 0.41 | 0.52 | — | — | |
| Eli Lilly & Co. | 2.44 | 1.59 | 1.96 | — | — | |
| Gilead Sciences Inc. | 1.12 | 1.22 | 1.30 | — | — | |
| Johnson & Johnson | 0.44 | 0.53 | 0.47 | — | — | |
| Merck & Co. Inc. | 0.97 | 0.70 | 0.91 | — | — | |
| Pfizer Inc. | 0.84 | 0.41 | 0.54 | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.11 | 0.12 | 0.15 | — | — | |
| Thermo Fisher Scientific Inc. | 0.78 | 0.82 | 0.89 | — | — | |
| Vertex Pharmaceuticals Inc. | 0.05 | 0.06 | 0.10 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.00 | 0.83 | 0.96 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.85 | 0.76 | 0.83 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 1,243 ÷ 13,854 = 0.09
2 Click competitor name to see calculations.
An analysis of the solvency position from 2019 to 2023 reveals a significant expansion of both total debt and stockholders' equity, though these components evolved at different velocities, directly impacting the overall leverage profile.
- Total Debt Trajectory
- Total debt, inclusive of operating lease liabilities, exhibited a consistent and substantial upward trend over the five-year period. Obligations increased from 136 million US$ in 2019 to 1,243 million US$ by the end of 2023. The most aggressive growth occurred between 2020 and 2021, where debt rose from 238 million US$ to 916 million US$, indicating a period of significant capital expansion.
- Stockholders' Equity Dynamics
- Stockholders' equity experienced exponential growth between 2019 and 2022, rising from 1,175 million US$ to a peak of 19,123 million US$. A reversal is observed in 2023, with equity declining to 13,854 million US$. Despite this recent contraction, the equity base remains substantially larger than the levels maintained prior to 2021.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio remained consistently low, suggesting a strong solvency position with minimal reliance on debt relative to equity. The ratio declined from 0.12 in 2019 to a low of 0.06 in 2021 and 2022, as the growth in equity significantly outpaced the increase in debt. In 2023, the ratio increased to 0.09, driven by the combination of rising total debt and a reduction in stockholders' equity.
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Debt to Capital
Moderna Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Financing lease liabilities, current | —) | 161) | 165) | 24) | —) | |
| Financing lease liabilities, non-current | 575) | 912) | 599) | 110) | 39) | |
| Total debt | 575) | 1,073) | 764) | 134) | 39) | |
| Stockholders’ equity | 13,854) | 19,123) | 14,145) | 2,561) | 1,175) | |
| Total capital | 14,429) | 20,196) | 14,909) | 2,696) | 1,213) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.04 | 0.05 | 0.05 | 0.05 | 0.03 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | 0.85 | 0.79 | 0.83 | — | — | |
| Amgen Inc. | 0.91 | 0.91 | 0.83 | — | — | |
| Bristol-Myers Squibb Co. | 0.57 | 0.56 | 0.55 | — | — | |
| Danaher Corp. | 0.26 | 0.28 | 0.33 | — | — | |
| Eli Lilly & Co. | 0.70 | 0.60 | 0.65 | — | — | |
| Gilead Sciences Inc. | 0.52 | 0.54 | 0.56 | — | — | |
| Johnson & Johnson | 0.30 | 0.34 | 0.31 | — | — | |
| Merck & Co. Inc. | 0.48 | 0.40 | 0.46 | — | — | |
| Pfizer Inc. | 0.45 | 0.27 | 0.33 | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.11 | 0.13 | — | — | |
| Thermo Fisher Scientific Inc. | 0.43 | 0.44 | 0.46 | — | — | |
| Vertex Pharmaceuticals Inc. | 0.02 | 0.03 | 0.05 | — | — | |
| Debt to Capital, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.49 | 0.44 | 0.48 | — | — | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.45 | 0.42 | 0.44 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 575 ÷ 14,429 = 0.04
2 Click competitor name to see calculations.
The financial data indicates a highly conservative capital structure characterized by minimal reliance on borrowed funds relative to total capitalization. Despite fluctuations in absolute debt levels, the company has maintained a consistently low solvency risk throughout the observed five-year period.
- Debt Dynamics
- Total debt experienced a period of rapid escalation, rising from 39 million US dollars in 2019 to a peak of 1,073 million US dollars in 2022. However, a significant reduction occurred by December 31, 2023, with total debt falling to 575 million US dollars, representing a decrease of approximately 46% from the previous year's peak.
- Capitalization Trends
- Total capital exhibited exponential growth between 2019 and 2022, increasing from 1,213 million US dollars to 20,196 million US dollars. This suggests a substantial influx of equity or retained earnings that far exceeded the growth of liabilities. A contraction in total capital to 14,429 million US dollars was noted in 2023.
- Debt to Capital Ratio Analysis
- The debt to capital ratio remained remarkably stable, fluctuating within a narrow range between 0.03 and 0.05. The ratio increased slightly from 0.03 in 2019 to 0.05 between 2020 and 2022, before moderating to 0.04 in 2023. This stability demonstrates that the expansion of the company's capital base effectively offset the increase in total debt, ensuring that leverage remained negligible.
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Debt to Capital (including Operating Lease Liability)
Moderna Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Financing lease liabilities, current | —) | 161) | 165) | 24) | —) | |
| Financing lease liabilities, non-current | 575) | 912) | 599) | 110) | 39) | |
| Total debt | 575) | 1,073) | 764) | 134) | 39) | |
| Operating lease liabilities, current | 25) | 35) | 46) | 6) | 4) | |
| Operating lease liabilities, non-current | 643) | 92) | 106) | 97) | 94) | |
| Total debt (including operating lease liability) | 1,243) | 1,200) | 916) | 238) | 136) | |
| Stockholders’ equity | 13,854) | 19,123) | 14,145) | 2,561) | 1,175) | |
| Total capital (including operating lease liability) | 15,097) | 20,323) | 15,061) | 2,799) | 1,311) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.08 | 0.06 | 0.06 | 0.08 | 0.10 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.85 | 0.79 | 0.83 | — | — | |
| Amgen Inc. | 0.91 | 0.92 | 0.84 | — | — | |
| Bristol-Myers Squibb Co. | 0.58 | 0.57 | 0.56 | — | — | |
| Danaher Corp. | 0.27 | 0.29 | 0.34 | — | — | |
| Eli Lilly & Co. | 0.71 | 0.61 | 0.66 | — | — | |
| Gilead Sciences Inc. | 0.53 | 0.55 | 0.56 | — | — | |
| Johnson & Johnson | 0.31 | 0.35 | 0.32 | — | — | |
| Merck & Co. Inc. | 0.49 | 0.41 | 0.48 | — | — | |
| Pfizer Inc. | 0.46 | 0.29 | 0.35 | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.10 | 0.11 | 0.13 | — | — | |
| Thermo Fisher Scientific Inc. | 0.44 | 0.45 | 0.47 | — | — | |
| Vertex Pharmaceuticals Inc. | 0.04 | 0.06 | 0.09 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.50 | 0.45 | 0.49 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.46 | 0.43 | 0.45 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 1,243 ÷ 15,097 = 0.08
2 Click competitor name to see calculations.
The solvency profile reflects a period of significant capital expansion and a controlled increase in leverage. While absolute debt levels rose over the five-year period, the company maintained a conservative debt-to-capital structure, with capital growth largely offsetting the increase in liabilities.
- Total Debt Evolution
- Total debt, including operating lease liabilities, exhibited a consistent upward trend, rising from US$ 136 million in 2019 to US$ 1,243 million in 2023. A sharp increase is observed between 2020 and 2021, where the debt load nearly quadrupled, followed by a more moderate pace of growth through 2023.
- Total Capital Dynamics
- Total capital underwent a massive expansion, growing from US$ 1,311 million in 2019 to a peak of US$ 20,323 million in 2022. This represents a substantial increase in the company's overall funding base. However, a contraction occurred in 2023, with total capital declining to US$ 15,097 million.
- Debt to Capital Ratio Analysis
- The debt to capital ratio remained low and stable, fluctuating within a narrow range of 0.06 to 0.10. The ratio decreased from 0.10 in 2019 to 0.06 in 2021 and 2022, demonstrating that the growth in total capital significantly outpaced the growth in debt during the peak expansion phase. The increase to 0.08 in 2023 is primarily attributable to the decrease in total capital rather than a substantial surge in new debt obligations.
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Debt to Assets
Moderna Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Financing lease liabilities, current | —) | 161) | 165) | 24) | —) | |
| Financing lease liabilities, non-current | 575) | 912) | 599) | 110) | 39) | |
| Total debt | 575) | 1,073) | 764) | 134) | 39) | |
| Total assets | 18,426) | 25,858) | 24,669) | 7,337) | 1,589) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.03 | 0.04 | 0.03 | 0.02 | 0.02 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | 0.44 | 0.46 | 0.52 | — | — | |
| Amgen Inc. | 0.67 | 0.60 | 0.54 | — | — | |
| Bristol-Myers Squibb Co. | 0.42 | 0.41 | 0.41 | — | — | |
| Danaher Corp. | 0.22 | 0.23 | 0.27 | — | — | |
| Eli Lilly & Co. | 0.39 | 0.33 | 0.35 | — | — | |
| Gilead Sciences Inc. | 0.40 | 0.40 | 0.39 | — | — | |
| Johnson & Johnson | 0.18 | 0.21 | 0.19 | — | — | |
| Merck & Co. Inc. | 0.33 | 0.28 | 0.31 | — | — | |
| Pfizer Inc. | 0.32 | 0.18 | 0.21 | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.09 | 0.11 | — | — | |
| Thermo Fisher Scientific Inc. | 0.35 | 0.35 | 0.37 | — | — | |
| Vertex Pharmaceuticals Inc. | 0.02 | 0.03 | 0.04 | — | — | |
| Debt to Assets, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.34 | 0.31 | 0.32 | — | — | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.30 | 0.28 | 0.30 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 575 ÷ 18,426 = 0.03
2 Click competitor name to see calculations.
The solvency position of the organization remains exceptionally strong, characterized by a minimal reliance on debt relative to its asset base over the five-year period ending December 31, 2023.
- Total Debt Trends
- A significant upward trajectory in total debt was observed between 2019 and 2022, with obligations increasing from 39 million US$ to a peak of 1,073 million US$. This trend reversed in 2023, as total debt decreased to 575 million US$, representing a reduction of approximately 46% from the prior year.
- Total Asset Growth and Contraction
- Total assets experienced rapid expansion from 2019 through 2022, growing from 1,589 million US$ to 25,858 million US$. A subsequent decline occurred in 2023, with assets decreasing to 18,426 million US$, indicating a contraction in the overall scale of the balance sheet.
- Debt to Assets Ratio Analysis
- Despite the substantial fluctuations in absolute debt and asset values, the debt to assets ratio remained consistently low and stable. The ratio was 0.02 in 2019 and 2020, reached a peak of 0.04 in 2022, and settled at 0.03 by the end of 2023. This stability demonstrates that the increase in liabilities was heavily offset by a larger growth in assets, maintaining a conservative leverage profile and low solvency risk.
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Debt to Assets (including Operating Lease Liability)
Moderna Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Financing lease liabilities, current | —) | 161) | 165) | 24) | —) | |
| Financing lease liabilities, non-current | 575) | 912) | 599) | 110) | 39) | |
| Total debt | 575) | 1,073) | 764) | 134) | 39) | |
| Operating lease liabilities, current | 25) | 35) | 46) | 6) | 4) | |
| Operating lease liabilities, non-current | 643) | 92) | 106) | 97) | 94) | |
| Total debt (including operating lease liability) | 1,243) | 1,200) | 916) | 238) | 136) | |
| Total assets | 18,426) | 25,858) | 24,669) | 7,337) | 1,589) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.07 | 0.05 | 0.04 | 0.03 | 0.09 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.45 | 0.46 | 0.53 | — | — | |
| Amgen Inc. | 0.67 | 0.61 | 0.56 | — | — | |
| Bristol-Myers Squibb Co. | 0.44 | 0.42 | 0.42 | — | — | |
| Danaher Corp. | 0.23 | 0.25 | 0.28 | — | — | |
| Eli Lilly & Co. | 0.41 | 0.34 | 0.36 | — | — | |
| Gilead Sciences Inc. | 0.41 | 0.41 | 0.40 | — | — | |
| Johnson & Johnson | 0.18 | 0.22 | 0.19 | — | — | |
| Merck & Co. Inc. | 0.34 | 0.29 | 0.33 | — | — | |
| Pfizer Inc. | 0.33 | 0.20 | 0.23 | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.09 | 0.11 | — | — | |
| Thermo Fisher Scientific Inc. | 0.37 | 0.37 | 0.38 | — | — | |
| Vertex Pharmaceuticals Inc. | 0.04 | 0.05 | 0.07 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.35 | 0.32 | 0.34 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.32 | 0.29 | 0.31 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 1,243 ÷ 18,426 = 0.07
2 Click competitor name to see calculations.
An analysis of the solvency metrics from 2019 to 2023 reveals a period of rapid asset expansion followed by a recent contraction, while total debt has maintained a consistent upward trajectory.
- Total Debt Accumulation
- Total debt, including operating lease liabilities, increased steadily throughout the analyzed period, rising from 136 million US dollars in 2019 to 1,243 million US dollars by the end of 2023. A significant acceleration in debt levels was observed between 2020 and 2021, where the balance nearly quadrupled.
- Asset Growth and Contraction
- Total assets experienced aggressive growth between 2019 and 2022, escalating from 1,589 million US dollars to a peak of 25,858 million US dollars. This growth trend reversed in 2023, with total assets declining to 18,426 million US dollars.
- Debt to Assets Ratio Dynamics
- The debt to assets ratio decreased sharply from 0.09 in 2019 to a period low of 0.03 in 2020, reflecting an expansion of the asset base that far outpaced the growth of liabilities. Following this low, the ratio transitioned into a gradual upward trend, reaching 0.07 by December 31, 2023. This recent increase is the result of simultaneous increases in total debt and a reduction in the total asset base during the 2023 fiscal year.
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Financial Leverage
Moderna Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 18,426) | 25,858) | 24,669) | 7,337) | 1,589) | |
| Stockholders’ equity | 13,854) | 19,123) | 14,145) | 2,561) | 1,175) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.33 | 1.35 | 1.74 | 2.86 | 1.35 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | 13.00 | 8.04 | 9.51 | — | — | |
| Amgen Inc. | 15.59 | 17.79 | 9.13 | — | — | |
| Bristol-Myers Squibb Co. | 3.23 | 3.12 | 3.04 | — | — | |
| Danaher Corp. | 1.58 | 1.68 | 1.84 | — | — | |
| Eli Lilly & Co. | 5.94 | 4.65 | 5.44 | — | — | |
| Gilead Sciences Inc. | 2.72 | 2.97 | 3.23 | — | — | |
| Johnson & Johnson | 2.44 | 2.44 | 2.46 | — | — | |
| Merck & Co. Inc. | 2.84 | 2.37 | 2.77 | — | — | |
| Pfizer Inc. | 2.54 | 2.06 | 2.35 | — | — | |
| Regeneron Pharmaceuticals Inc. | 1.27 | 1.29 | 1.36 | — | — | |
| Thermo Fisher Scientific Inc. | 2.11 | 2.21 | 2.33 | — | — | |
| Vertex Pharmaceuticals Inc. | 1.29 | 1.30 | 1.33 | — | — | |
| Financial Leverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 2.85 | 2.62 | 2.86 | — | — | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.70 | 2.57 | 2.69 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 18,426 ÷ 13,854 = 1.33
2 Click competitor name to see calculations.
The balance sheet experienced a period of rapid expansion between 2019 and 2022, followed by a contraction in 2023. Total assets increased from 1,589 million US$ in 2019 to a peak of 25,858 million US$ in 2022, before declining to 18,426 million US$ by the end of 2023. Stockholders' equity followed a similar trajectory, growing from 1,175 million US$ in 2019 to a peak of 19,123 million US$ in 2022, and subsequently decreasing to 13,854 million US$ in 2023.
- Financial Leverage Volatility
- A significant spike in financial leverage is observed in 2020, where the ratio rose to 2.86 from 1.35 in the previous year. This indicates a sharp increase in the proportion of liabilities relative to equity during the initial phase of asset expansion.
- Deleveraging Trend
- Following the 2020 peak, a consistent downward trend in the leverage ratio is evident. The ratio decreased to 1.74 in 2021 and reached 1.35 in 2022. This reduction was driven by a substantial increase in stockholders' equity, which expanded more rapidly than total assets between 2020 and 2022.
- Stabilization of Capital Structure
- By December 31, 2023, the financial leverage ratio stabilized at 1.33. This value represents a return to the solvency levels observed in 2019, suggesting that the company has reverted to a more conservative capital structure after a period of aggressive growth and subsequent balance sheet adjustment.
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Interest Coverage
Moderna Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | (4,714) | 8,362) | 12,202) | (747) | (514) | |
| Add: Income tax expense | 772) | 1,213) | 1,083) | 3) | (1) | |
| Add: Interest expense | 38) | 29) | 18) | 10) | 7) | |
| Earnings before interest and tax (EBIT) | (3,904) | 9,604) | 13,303) | (735) | (508) | |
| Solvency Ratio | ||||||
| Interest coverage1 | -102.74 | 331.17 | 739.06 | -74.31 | -76.85 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | 3.81 | 7.04 | 6.36 | — | — | |
| Amgen Inc. | 3.73 | 6.22 | 6.60 | — | — | |
| Bristol-Myers Squibb Co. | 8.24 | 7.26 | 7.07 | — | — | |
| Danaher Corp. | 18.64 | 40.30 | 32.92 | — | — | |
| Eli Lilly & Co. | 14.49 | 21.53 | 19.12 | — | — | |
| Gilead Sciences Inc. | 8.27 | 7.22 | 9.27 | — | — | |
| Johnson & Johnson | 20.51 | 79.71 | 125.46 | — | — | |
| Merck & Co. Inc. | 2.65 | 18.09 | 18.22 | — | — | |
| Pfizer Inc. | 1.48 | 29.05 | 19.83 | — | — | |
| Regeneron Pharmaceuticals Inc. | 58.52 | 82.80 | 163.75 | — | — | |
| Thermo Fisher Scientific Inc. | 5.54 | 11.56 | 17.49 | — | — | |
| Vertex Pharmaceuticals Inc. | 100.32 | 78.23 | 45.40 | — | — | |
| Interest Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 6.43 | 15.40 | 14.91 | — | — | |
| Interest Coverage, Industry | ||||||
| Health Care | 7.51 | 14.75 | 14.14 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= -3,904 ÷ 38 = -102.74
2 Click competitor name to see calculations.
The analysis of interest coverage from 2019 to 2023 reveals significant volatility in the capacity to service debt obligations, closely mirroring fluctuations in operating performance. While interest expenses grew steadily over the five-year period, the interest coverage ratio experienced extreme swings driven by the variability of Earnings Before Interest and Taxes (EBIT).
- Operating Earnings Performance
- Operating results transitioned from negative values in 2019 and 2020 to a substantial peak in 2021, where EBIT reached 13,303 million USD. This was followed by a contraction in 2022 and a subsequent return to an operating loss in 2023, with EBIT falling to -3,904 million USD.
- Interest Expense Trajectory
- Interest expenses exhibited a consistent and linear upward trend throughout the observed period, increasing from 7 million USD in 2019 to 38 million USD in 2023. This steady growth suggests an increase in the total debt burden or a rise in the cost of borrowing.
- Interest Coverage Ratio Fluctuations
- The interest coverage ratio shifted from negative territory in 2019 and 2020 to an exceptional high of 739.06 in 2021, indicating an extraordinary surplus of operating income relative to interest costs. This trend reversed sharply by 2023, with the ratio falling to -102.74, indicating that current operating earnings are insufficient to cover interest expenses.
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Fixed Charge Coverage
Moderna Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | (4,714) | 8,362) | 12,202) | (747) | (514) | |
| Add: Income tax expense | 772) | 1,213) | 1,083) | 3) | (1) | |
| Add: Interest expense | 38) | 29) | 18) | 10) | 7) | |
| Earnings before interest and tax (EBIT) | (3,904) | 9,604) | 13,303) | (735) | (508) | |
| Add: Operating lease costs | 88) | 48) | 24) | 17) | 17) | |
| Earnings before fixed charges and tax | (3,816) | 9,652) | 13,327) | (718) | (491) | |
| Interest expense | 38) | 29) | 18) | 10) | 7) | |
| Operating lease costs | 88) | 48) | 24) | 17) | 17) | |
| Fixed charges | 126) | 77) | 42) | 27) | 24) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | -30.29 | 125.35 | 317.31 | -26.75 | -20.79 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| AbbVie Inc. | 3.59 | 6.54 | 5.90 | — | — | |
| Amgen Inc. | 3.55 | 5.52 | 5.67 | — | — | |
| Bristol-Myers Squibb Co. | 6.69 | 6.30 | 6.01 | — | — | |
| Danaher Corp. | 9.55 | 13.41 | 10.85 | — | — | |
| Eli Lilly & Co. | 10.98 | 15.17 | 13.33 | — | — | |
| Gilead Sciences Inc. | 7.18 | 6.30 | 8.15 | — | — | |
| Johnson & Johnson | 16.50 | 38.72 | 48.16 | — | — | |
| Merck & Co. Inc. | 2.27 | 13.69 | 13.08 | — | — | |
| Pfizer Inc. | 1.34 | 18.79 | 14.22 | — | — | |
| Regeneron Pharmaceuticals Inc. | 46.55 | 68.67 | 138.96 | — | — | |
| Thermo Fisher Scientific Inc. | 4.61 | 8.12 | 12.19 | — | — | |
| Vertex Pharmaceuticals Inc. | 48.66 | 47.97 | 29.62 | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 5.40 | 11.85 | 11.49 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 6.08 | 10.95 | 10.48 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= -3,816 ÷ 126 = -30.29
2 Click competitor name to see calculations.
The financial trajectory of fixed charge coverage from 2019 to 2023 is characterized by extreme volatility, reflecting a period of rapid earnings expansion followed by a significant contraction.
- Earnings before fixed charges and tax
- A volatile pattern is evident, beginning with losses in 2019 and 2020. A substantial surge occurred in 2021, where earnings peaked at 13,327 million US dollars. This was followed by a decline in 2022 and a return to a deficit of 3,816 million US dollars by the end of 2023.
- Fixed charges expenditure
- An uninterrupted upward trend is observed in fixed charges. Obligations increased steadily from 24 million US dollars in 2019 to 126 million US dollars in 2023, indicating a consistent growth in the company's fixed financial commitments over the analyzed period.
- Fixed charge coverage ratio
- The coverage ratio mirrors the instability of the earnings stream. After negative values in 2019 and 2020, the ratio reached an exceptional peak of 317.31 in 2021, demonstrating a temporary and high capacity to meet fixed obligations. This figure decreased to 125.35 in 2022 and shifted back to a negative position of -30.29 in 2023, indicating that earnings before fixed charges and tax were insufficient to cover fixed obligations in the final year of the period.
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