Microsoft Excel LibreOffice Calc

Regeneron Pharmaceuticals Inc. (REGN)

Long-term Debt and Solvency Analysis

Difficulty: Beginner

  • Annual Data
  • Quarterly Data

    • Solvency ratios also known as long-term debt ratios measure a company's ability to meet long-term obligations.

    Ratios (Summary)

    Regeneron Pharmaceuticals Inc., debt and solvency ratios

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Debt to equity 0.11 0.11 0.10 0.18 0.26
    Debt to capital 0.10 0.10 0.09 0.15 0.21
    Interest coverage 83.75 185.82 87.03 21.76 16.36

    Source: Based on data from Regeneron Pharmaceuticals Inc. Annual Reports

    Ratio Description The company
    Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Regeneron Pharmaceuticals Inc.'s debt-to-equity ratio deteriorated from 2015 to 2016 and from 2016 to 2017.
    Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Regeneron Pharmaceuticals Inc.'s debt-to-capital ratio deteriorated from 2015 to 2016 and from 2016 to 2017.
    Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Regeneron Pharmaceuticals Inc.'s interest coverage ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

    Debt to Equity

    Regeneron Pharmaceuticals Inc., debt to equity calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data (USD $ in thousands)
    Capital and facility lease obligations, current portion – 129,557  1,789  1,353  939 
    Convertible senior notes, current portion – – 10,802  – –
    Capital and facility lease obligations, excluding current portion 703,453  351,569  362,919  310,938  184,384 
    Convertible senior notes, excluding current portion – – – 146,773  320,315 
    Total debt 703,453  481,126  375,510  459,064  505,638 
    Stockholders' equity 6,144,078  4,449,245  3,654,837  2,542,325  1,952,076 
    Ratio
    Debt to equity1 0.11 0.11 0.10 0.18 0.26
    Benchmarks
    Debt to Equity, Competitors
    Abbott Laboratories 0.90 1.07 0.42 0.36 0.26
    AbbVie Inc. 7.33 7.95 8.03 8.62 3.28
    Allergan PLC 0.41 0.43 0.56 0.55 0.95
    Amgen Inc. 1.40 1.16 1.12 1.19 1.45
    Biogen Inc. 0.47 0.54 0.70 0.05 0.07
    Bristol-Myers Squibb Co. 0.68 0.41 0.47 0.53 0.55
    Celgene Corp. 2.29 2.17 2.41 1.05 0.85
    Eli Lilly & Co. 1.18 0.74 0.55 0.52 0.30
    Gilead Sciences Inc. 1.64 1.39 1.20 0.80 0.58
    Johnson & Johnson 0.57 0.39 0.28 0.27 0.25
    Merck & Co. Inc. 0.71 0.62 0.59 0.44 0.50
    Pfizer Inc. 0.61 0.71 0.60 0.51 0.48
    Debt to Equity, Sector
    Pharmaceuticals & Biotechnology 0.84 0.76 0.69 0.55 0.52
    Debt to Equity, Industry
    Health Care 0.81 0.76 0.70 0.56 0.53

    Source: Based on data from Regeneron Pharmaceuticals Inc. Annual Reports

    2017 Calculations

    1 Debt to equity = Total debt ÷ Stockholders' equity
    = 703,453 ÷ 6,144,078 = 0.11

    Ratio Description The company
    Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Regeneron Pharmaceuticals Inc.'s debt-to-equity ratio deteriorated from 2015 to 2016 and from 2016 to 2017.

    Debt to Capital

    Regeneron Pharmaceuticals Inc., debt to capital calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data (USD $ in thousands)
    Capital and facility lease obligations, current portion – 129,557  1,789  1,353  939 
    Convertible senior notes, current portion – – 10,802  – –
    Capital and facility lease obligations, excluding current portion 703,453  351,569  362,919  310,938  184,384 
    Convertible senior notes, excluding current portion – – – 146,773  320,315 
    Total debt 703,453  481,126  375,510  459,064  505,638 
    Stockholders' equity 6,144,078  4,449,245  3,654,837  2,542,325  1,952,076 
    Total capital 6,847,531  4,930,371  4,030,347  3,001,389  2,457,714 
    Ratio
    Debt to capital1 0.10 0.10 0.09 0.15 0.21
    Benchmarks
    Debt to Capital, Competitors
    Abbott Laboratories 0.47 0.52 0.30 0.27 0.21
    AbbVie Inc. 0.88 0.89 0.89 0.90 0.77
    Allergan PLC 0.29 0.30 0.36 0.35 0.49
    Amgen Inc. 0.58 0.54 0.53 0.54 0.59
    Biogen Inc. 0.32 0.35 0.41 0.05 0.06
    Bristol-Myers Squibb Co. 0.40 0.29 0.32 0.35 0.35
    Celgene Corp. 0.70 0.68 0.71 0.51 0.46
    Eli Lilly & Co. 0.54 0.42 0.35 0.34 0.23
    Gilead Sciences Inc. 0.62 0.58 0.54 0.45 0.37
    Johnson & Johnson 0.37 0.28 0.22 0.21 0.20
    Merck & Co. Inc. 0.42 0.38 0.37 0.31 0.33
    Pfizer Inc. 0.38 0.41 0.38 0.34 0.32
    Debt to Capital, Sector
    Pharmaceuticals & Biotechnology 0.46 0.43 0.41 0.35 0.34
    Debt to Capital, Industry
    Health Care 0.45 0.43 0.41 0.36 0.35

    Source: Based on data from Regeneron Pharmaceuticals Inc. Annual Reports

    2017 Calculations

    1 Debt to capital = Total debt ÷ Total capital
    = 703,453 ÷ 6,847,531 = 0.10

    Ratio Description The company
    Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Regeneron Pharmaceuticals Inc.'s debt-to-capital ratio deteriorated from 2015 to 2016 and from 2016 to 2017.

    Interest Coverage

    Regeneron Pharmaceuticals Inc., interest coverage calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data (USD $ in thousands)
    Net income 1,198,511  895,522  636,056  348,074  424,362 
    Add: Income tax expense 880,000  434,293  589,041  427,673  288,998 
    Add: Interest expense 25,119  7,195  14,241  37,372  46,437 
    Earnings before interest and tax (EBIT) 2,103,630  1,337,010  1,239,338  813,119  759,797 
    Ratio
    Interest coverage1 83.75 185.82 87.03 21.76 16.36
    Benchmarks
    Interest Coverage, Competitors
    Abbott Laboratories 3.47 4.28 20.53 17.79 17.06
    AbbVie Inc. 7.72 8.53 10.24 6.52 18.83
    Allergan PLC -8.48 -1.19 -2.71 -3.16 -1.66
    Amgen Inc. 8.36 8.27 8.29 6.21 6.15
    Biogen Inc. 21.45 19.97 50.79 134.27 78.22
    Bristol-Myers Squibb Co. 27.18 36.42 12.29 12.73 15.53
    Celgene Corp. 9.26 5.74 7.51 14.22 19.18
    Eli Lilly & Co. 10.77 19.22 18.31 21.16 37.79
    Gilead Sciences Inc. 13.10 18.74 32.48 37.06 14.71
    Johnson & Johnson 19.92 28.28 35.78 39.58 33.10
    Merck & Co. Inc. 9.65 7.72 9.04 24.61 7.92
    Pfizer Inc. 10.69 8.04 8.48 10.00 12.11
    Interest Coverage, Sector
    Pharmaceuticals & Biotechnology 9.01 10.57 12.56 16.13 13.77
    Interest Coverage, Industry
    Health Care 8.87 9.60 11.78 14.45 12.77

    Source: Based on data from Regeneron Pharmaceuticals Inc. Annual Reports

    2017 Calculations

    1 Interest coverage = EBIT ÷ Interest expense
    = 2,103,630 ÷ 25,119 = 83.75

    Ratio Description The company
    Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Regeneron Pharmaceuticals Inc.'s interest coverage ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.