Microsoft Excel LibreOffice Calc

Long-term Debt and Solvency Analysis

Difficulty: Beginner


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.