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)
Regeneron Pharmaceuticals Inc., solvency ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The solvency position of the company demonstrates a generally strengthening financial structure over the analyzed period. A consistent decrease is observed in debt-related ratios, while coverage ratios exhibit volatility but ultimately improve towards the end of the period. These trends suggest a decreasing reliance on debt financing and an increasing ability to meet financial obligations.
- Debt Levels
- Debt to equity, debt to capital, and debt to assets ratios all show a declining trend from 2021 to 2025. The decrease, while moderate, is consistent across all measures, indicating a reduction in the proportion of debt financing relative to equity, capital, and total assets. Inclusion of operating lease liabilities results in slightly higher ratios, but these also demonstrate a similar downward trajectory. By 2025, these ratios stabilize, suggesting the debt reduction strategy has reached a plateau.
- Leverage
- Financial leverage initially decreases from 1.36 in 2021 to 1.27 in 2023, then experiences a slight increase to 1.30 in 2025. This suggests a temporary reduction in the use of debt to amplify returns, followed by a modest return to prior levels. The overall leverage remains relatively stable, indicating a consistent capital structure.
- Coverage Ratios
- Interest coverage and fixed charge coverage ratios both experience significant fluctuations. Interest coverage declines sharply from 163.75 in 2021 to 58.52 in 2023, before recovering to 120.42 in 2025. Fixed charge coverage follows a similar pattern, decreasing from 138.96 to 46.55 and then increasing to 66.71. These fluctuations likely reflect changes in earnings and fixed charges. The ultimate increase in both ratios by 2025 indicates an improved ability to cover interest and fixed obligations, despite the initial decline.
In summary, the company’s solvency position appears to be improving. While coverage ratios experienced a temporary dip, they demonstrate a positive trend towards the end of the analyzed period, coinciding with a consistent reduction in debt ratios. This suggests a strengthening financial foundation and an enhanced capacity to manage its financial commitments.
Debt Ratios
Coverage Ratios
Debt to Equity
Regeneron Pharmaceuticals Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Finance lease liabilities, current portion | —) | —) | —) | —) | 719,700) | |
| Long-term debt | 1,985,900) | 1,984,400) | 1,982,900) | 1,981,400) | 1,980,000) | |
| Finance lease liabilities, excluding current portion | 720,000) | 720,000) | 720,000) | 720,000) | —) | |
| Total debt | 2,705,900) | 2,704,400) | 2,702,900) | 2,701,400) | 2,699,700) | |
| Stockholders’ equity | 31,256,900) | 29,353,600) | 25,973,100) | 22,664,000) | 18,768,800) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.09 | 0.09 | 0.10 | 0.12 | 0.14 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | — | 20.19 | 5.73 | 3.67 | 4.98 | |
| Amgen Inc. | — | 10.23 | 10.37 | 10.64 | 4.97 | |
| Bristol-Myers Squibb Co. | — | 3.04 | 1.35 | 1.27 | 1.24 | |
| Danaher Corp. | — | 0.32 | 0.34 | 0.39 | 0.49 | |
| Eli Lilly & Co. | — | 2.37 | 2.34 | 1.52 | 1.88 | |
| Gilead Sciences Inc. | — | 1.38 | 1.09 | 1.19 | 1.27 | |
| Johnson & Johnson | — | 0.51 | 0.43 | 0.52 | 0.46 | |
| Merck & Co. Inc. | — | 0.80 | 0.93 | 0.67 | 0.87 | |
| Pfizer Inc. | — | 0.73 | 0.81 | 0.37 | 0.50 | |
| Thermo Fisher Scientific Inc. | — | 0.63 | 0.75 | 0.78 | 0.85 | |
| Vertex Pharmaceuticals Inc. | — | 0.01 | 0.02 | 0.03 | 0.06 | |
| Debt to Equity, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 1.04 | 0.97 | 0.80 | 0.93 | |
| Debt to Equity, Industry | ||||||
| Health Care | — | 0.87 | 0.82 | 0.72 | 0.80 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 2,705,900 ÷ 31,256,900 = 0.09
2 Click competitor name to see calculations.
The debt to equity ratio demonstrates a consistent downward trend over the five-year period. This indicates a strengthening of the company’s financial position with respect to its leverage.
- Debt to Equity Ratio Trend
- In 2021, the debt to equity ratio was 0.14. This decreased to 0.12 in 2022, and continued to decline to 0.10 in 2023. The ratio further decreased to 0.09 in 2024 and remained stable at 0.09 in 2025.
The relative stability in total debt, coupled with consistent growth in stockholders’ equity, is the primary driver of this trend. Total debt experienced minimal fluctuation throughout the period, increasing incrementally from US$2,699,700 thousand in 2021 to US$2,705,900 thousand in 2025. Simultaneously, stockholders’ equity exhibited substantial growth, increasing from US$18,768,800 thousand in 2021 to US$31,256,900 thousand in 2025.
- Implications of the Trend
- A decreasing debt to equity ratio generally suggests reduced financial risk. The company is relying less on debt financing and more on equity to fund its operations and growth. This can improve its creditworthiness and provide greater flexibility in future financing endeavors.
- Equity Growth
- The significant increase in stockholders’ equity suggests strong profitability and/or successful equity issuance. This growth is outpacing the relatively stable debt levels, resulting in the observed decline in the debt to equity ratio.
The consistent decline and subsequent stabilization of the debt to equity ratio suggest a conservative and strengthening capital structure.
Debt to Equity (including Operating Lease Liability)
Regeneron Pharmaceuticals Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Finance lease liabilities, current portion | —) | —) | —) | —) | 719,700) | |
| Long-term debt | 1,985,900) | 1,984,400) | 1,982,900) | 1,981,400) | 1,980,000) | |
| Finance lease liabilities, excluding current portion | 720,000) | 720,000) | 720,000) | 720,000) | —) | |
| Total debt | 2,705,900) | 2,704,400) | 2,702,900) | 2,701,400) | 2,699,700) | |
| Operating lease liabilities, current (included in Accrued expenses and other current liabilities) | 37,800) | 30,300) | 19,000) | 12,400) | 12,400) | |
| Operating lease liabilities, noncurrent (included in Other noncurrent liabilities) | 229,000) | 204,100) | 68,700) | 55,800) | 55,800) | |
| Total debt (including operating lease liability) | 2,972,700) | 2,938,800) | 2,790,600) | 2,769,600) | 2,767,900) | |
| Stockholders’ equity | 31,256,900) | 29,353,600) | 25,973,100) | 22,664,000) | 18,768,800) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.10 | 0.10 | 0.11 | 0.12 | 0.15 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | — | 20.46 | 5.82 | 3.72 | 5.03 | |
| Amgen Inc. | — | 10.36 | 10.50 | 10.83 | 5.07 | |
| Bristol-Myers Squibb Co. | — | 3.13 | 1.41 | 1.31 | 1.27 | |
| Danaher Corp. | — | 0.35 | 0.37 | 0.41 | 0.52 | |
| Eli Lilly & Co. | — | 2.45 | 2.44 | 1.59 | 1.96 | |
| Gilead Sciences Inc. | — | 1.41 | 1.12 | 1.22 | 1.30 | |
| Johnson & Johnson | — | 0.53 | 0.44 | 0.53 | 0.47 | |
| Merck & Co. Inc. | — | 0.83 | 0.97 | 0.70 | 0.91 | |
| Pfizer Inc. | — | 0.76 | 0.84 | 0.41 | 0.54 | |
| Thermo Fisher Scientific Inc. | — | 0.66 | 0.78 | 0.82 | 0.89 | |
| Vertex Pharmaceuticals Inc. | — | 0.11 | 0.05 | 0.06 | 0.10 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 1.07 | 1.00 | 0.83 | 0.96 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | — | 0.90 | 0.85 | 0.76 | 0.83 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 2,972,700 ÷ 31,256,900 = 0.10
2 Click competitor name to see calculations.
The Debt to Equity ratio, including operating lease liability, demonstrates a consistent downward trend over the five-year period. Total debt, inclusive of operating lease liabilities, experienced a modest increase from 2021 to 2025, while stockholders’ equity exhibited a more substantial growth trajectory. This differential growth is the primary driver of the observed ratio decline.
- Debt to Equity Ratio Trend
- The ratio decreased from 0.15 in 2021 to 0.10 in 2025. The most significant decrease occurred between 2021 and 2022, falling from 0.15 to 0.12. Subsequent annual declines were more incremental, moving from 0.12 in 2022 to 0.11 in 2023, and then to 0.10 in both 2024 and 2025.
- Total Debt
- Total debt, including operating lease liability, increased from US$2,767.9 million in 2021 to US$2,972.7 million in 2025. The largest single-year increase was observed between 2023 and 2024, with an increase of US$148.2 million. Growth in other periods was comparatively smaller.
- Stockholders’ Equity
- Stockholders’ equity increased substantially over the period, rising from US$18,768.8 million in 2021 to US$31,256.9 million in 2025. The largest absolute increase occurred between 2022 and 2023, adding US$3,309.1 million to equity. Consistent growth was present throughout the period.
The consistent decline in the Debt to Equity ratio suggests a strengthening financial position, with the company relying less on debt financing relative to equity. The growth in stockholders’ equity outpaced the growth in total debt, contributing to this improved solvency profile. The relatively stable ratio in the final two years indicates a potential stabilization of the capital structure.
Debt to Capital
Regeneron Pharmaceuticals Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Finance lease liabilities, current portion | —) | —) | —) | —) | 719,700) | |
| Long-term debt | 1,985,900) | 1,984,400) | 1,982,900) | 1,981,400) | 1,980,000) | |
| Finance lease liabilities, excluding current portion | 720,000) | 720,000) | 720,000) | 720,000) | —) | |
| Total debt | 2,705,900) | 2,704,400) | 2,702,900) | 2,701,400) | 2,699,700) | |
| Stockholders’ equity | 31,256,900) | 29,353,600) | 25,973,100) | 22,664,000) | 18,768,800) | |
| Total capital | 33,962,800) | 32,058,000) | 28,676,000) | 25,365,400) | 21,468,500) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.08 | 0.08 | 0.09 | 0.11 | 0.13 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | — | 0.95 | 0.85 | 0.79 | 0.83 | |
| Amgen Inc. | — | 0.91 | 0.91 | 0.91 | 0.83 | |
| Bristol-Myers Squibb Co. | — | 0.75 | 0.57 | 0.56 | 0.55 | |
| Danaher Corp. | — | 0.24 | 0.26 | 0.28 | 0.33 | |
| Eli Lilly & Co. | — | 0.70 | 0.70 | 0.60 | 0.65 | |
| Gilead Sciences Inc. | — | 0.58 | 0.52 | 0.54 | 0.56 | |
| Johnson & Johnson | — | 0.34 | 0.30 | 0.34 | 0.31 | |
| Merck & Co. Inc. | — | 0.44 | 0.48 | 0.40 | 0.46 | |
| Pfizer Inc. | — | 0.42 | 0.45 | 0.27 | 0.33 | |
| Thermo Fisher Scientific Inc. | — | 0.39 | 0.43 | 0.44 | 0.46 | |
| Vertex Pharmaceuticals Inc. | — | 0.01 | 0.02 | 0.03 | 0.05 | |
| Debt to Capital, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 0.51 | 0.49 | 0.44 | 0.48 | |
| Debt to Capital, Industry | ||||||
| Health Care | — | 0.47 | 0.45 | 0.42 | 0.44 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 2,705,900 ÷ 33,962,800 = 0.08
2 Click competitor name to see calculations.
The Debt to Capital ratio demonstrates a consistent downward trend over the five-year period. This indicates a decreasing reliance on debt financing relative to the company’s total capital structure.
- Total Debt
- Total debt remained remarkably stable across the observed period, fluctuating minimally between US$2,699,700 thousand and US$2,705,900 thousand. This suggests a conservative approach to increasing debt obligations.
- Total Capital
- Total capital exhibited a steady and substantial increase throughout the period, growing from US$21,468,500 thousand in 2021 to US$33,962,800 thousand in 2025. This growth in capital likely reflects retained earnings and potentially equity raises, contributing to the observed changes in the Debt to Capital ratio.
- Debt to Capital Ratio
- The Debt to Capital ratio decreased from 0.13 in 2021 to 0.08 in both 2024 and 2025. This decline signifies an improvement in the company’s solvency position, as a smaller proportion of its capital is financed by debt. The rate of decrease was more pronounced between 2021 and 2023, slowing down in the subsequent years, suggesting a stabilization of the capital structure.
The consistent growth in total capital, coupled with stable debt levels, has resulted in a strengthening of the company’s financial position as measured by the Debt to Capital ratio. This trend suggests reduced financial risk and increased capacity for future investment or weathering potential economic downturns.
Debt to Capital (including Operating Lease Liability)
Regeneron Pharmaceuticals Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Finance lease liabilities, current portion | —) | —) | —) | —) | 719,700) | |
| Long-term debt | 1,985,900) | 1,984,400) | 1,982,900) | 1,981,400) | 1,980,000) | |
| Finance lease liabilities, excluding current portion | 720,000) | 720,000) | 720,000) | 720,000) | —) | |
| Total debt | 2,705,900) | 2,704,400) | 2,702,900) | 2,701,400) | 2,699,700) | |
| Operating lease liabilities, current (included in Accrued expenses and other current liabilities) | 37,800) | 30,300) | 19,000) | 12,400) | 12,400) | |
| Operating lease liabilities, noncurrent (included in Other noncurrent liabilities) | 229,000) | 204,100) | 68,700) | 55,800) | 55,800) | |
| Total debt (including operating lease liability) | 2,972,700) | 2,938,800) | 2,790,600) | 2,769,600) | 2,767,900) | |
| Stockholders’ equity | 31,256,900) | 29,353,600) | 25,973,100) | 22,664,000) | 18,768,800) | |
| Total capital (including operating lease liability) | 34,229,600) | 32,292,400) | 28,763,700) | 25,433,600) | 21,536,700) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.09 | 0.09 | 0.10 | 0.11 | 0.13 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | — | 0.95 | 0.85 | 0.79 | 0.83 | |
| Amgen Inc. | — | 0.91 | 0.91 | 0.92 | 0.84 | |
| Bristol-Myers Squibb Co. | — | 0.76 | 0.58 | 0.57 | 0.56 | |
| Danaher Corp. | — | 0.26 | 0.27 | 0.29 | 0.34 | |
| Eli Lilly & Co. | — | 0.71 | 0.71 | 0.61 | 0.66 | |
| Gilead Sciences Inc. | — | 0.59 | 0.53 | 0.55 | 0.56 | |
| Johnson & Johnson | — | 0.35 | 0.31 | 0.35 | 0.32 | |
| Merck & Co. Inc. | — | 0.45 | 0.49 | 0.41 | 0.48 | |
| Pfizer Inc. | — | 0.43 | 0.46 | 0.29 | 0.35 | |
| Thermo Fisher Scientific Inc. | — | 0.40 | 0.44 | 0.45 | 0.47 | |
| Vertex Pharmaceuticals Inc. | — | 0.10 | 0.04 | 0.06 | 0.09 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 0.52 | 0.50 | 0.45 | 0.49 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | — | 0.47 | 0.46 | 0.43 | 0.45 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 2,972,700 ÷ 34,229,600 = 0.09
2 Click competitor name to see calculations.
The Debt to Capital ratio, inclusive of operating lease liabilities, demonstrates a consistent downward trend over the five-year period. Total debt, including operating lease liability, exhibits a modest increase from 2021 to 2025, while total capital, inclusive of operating lease liability, shows a more substantial growth. This differential growth is the primary driver of the observed ratio decline.
- Debt to Capital Ratio Trend
- The ratio decreased from 0.13 in 2021 to 0.09 in 2025. This indicates a decreasing reliance on debt financing relative to the company’s total capital structure. The decline is not precipitous, suggesting a controlled and gradual shift.
- Total Debt (including operating lease liability)
- Total debt increased from US$2,767,900 thousand in 2021 to US$2,972,700 thousand in 2025, representing an approximate 7.4% increase over the period. The year-over-year increases are relatively small, with a more noticeable increase between 2022 and 2024.
- Total Capital (including operating lease liability)
- Total capital experienced a more significant increase, growing from US$21,536,700 thousand in 2021 to US$34,229,600 thousand in 2025, a roughly 58.9% increase. This substantial growth in capital base is the key factor contributing to the declining Debt to Capital ratio.
The consistent decrease in the Debt to Capital ratio suggests improving solvency. The company appears to be effectively increasing its capital base at a rate exceeding the growth of its debt obligations, which could indicate strengthening financial health and reduced financial risk.
Debt to Assets
Regeneron Pharmaceuticals Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Finance lease liabilities, current portion | —) | —) | —) | —) | 719,700) | |
| Long-term debt | 1,985,900) | 1,984,400) | 1,982,900) | 1,981,400) | 1,980,000) | |
| Finance lease liabilities, excluding current portion | 720,000) | 720,000) | 720,000) | 720,000) | —) | |
| Total debt | 2,705,900) | 2,704,400) | 2,702,900) | 2,701,400) | 2,699,700) | |
| Total assets | 40,558,700) | 37,759,400) | 33,080,200) | 29,214,500) | 25,434,800) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.07 | 0.07 | 0.08 | 0.09 | 0.11 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | — | 0.50 | 0.44 | 0.46 | 0.52 | |
| Amgen Inc. | — | 0.65 | 0.67 | 0.60 | 0.54 | |
| Bristol-Myers Squibb Co. | — | 0.54 | 0.42 | 0.41 | 0.41 | |
| Danaher Corp. | — | 0.21 | 0.22 | 0.23 | 0.27 | |
| Eli Lilly & Co. | — | 0.43 | 0.39 | 0.33 | 0.35 | |
| Gilead Sciences Inc. | — | 0.45 | 0.40 | 0.40 | 0.39 | |
| Johnson & Johnson | — | 0.20 | 0.18 | 0.21 | 0.19 | |
| Merck & Co. Inc. | — | 0.32 | 0.33 | 0.28 | 0.31 | |
| Pfizer Inc. | — | 0.30 | 0.32 | 0.18 | 0.21 | |
| Thermo Fisher Scientific Inc. | — | 0.32 | 0.35 | 0.35 | 0.37 | |
| Vertex Pharmaceuticals Inc. | — | 0.01 | 0.02 | 0.03 | 0.04 | |
| Debt to Assets, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 0.35 | 0.34 | 0.31 | 0.32 | |
| Debt to Assets, Industry | ||||||
| Health Care | — | 0.32 | 0.30 | 0.28 | 0.30 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 2,705,900 ÷ 40,558,700 = 0.07
2 Click competitor name to see calculations.
The Debt to Assets ratio demonstrates a consistent downward trend over the five-year period. This indicates a decreasing reliance on debt financing relative to the company’s total asset base.
- Debt to Assets Ratio Trend
- In 2021, the Debt to Assets ratio was 0.11. This value decreased to 0.09 in 2022, and continued to decline to 0.08 in 2023. The ratio further decreased to 0.07 in 2024 and remained stable at 0.07 in 2025.
The relatively stable level of Total Debt, coupled with consistent growth in Total Assets, is the primary driver of this declining ratio. Total debt experienced minimal fluctuation throughout the period, while total assets increased steadily from US$25,434,800 in 2021 to US$40,558,700 in 2025.
- Implications of the Trend
- A decreasing Debt to Assets ratio generally suggests improved financial leverage and a stronger solvency position. The company appears to be funding its asset growth primarily through equity or internally generated funds, rather than through increased borrowing. This could indicate reduced financial risk and increased capacity for future investment.
The stabilization of the ratio at 0.07 in the final two years suggests a potential equilibrium point, where the company’s asset growth and debt levels have reached a sustainable balance. Continued monitoring of this ratio is recommended to confirm this trend and assess any potential shifts in the company’s capital structure.
Debt to Assets (including Operating Lease Liability)
Regeneron Pharmaceuticals Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Finance lease liabilities, current portion | —) | —) | —) | —) | 719,700) | |
| Long-term debt | 1,985,900) | 1,984,400) | 1,982,900) | 1,981,400) | 1,980,000) | |
| Finance lease liabilities, excluding current portion | 720,000) | 720,000) | 720,000) | 720,000) | —) | |
| Total debt | 2,705,900) | 2,704,400) | 2,702,900) | 2,701,400) | 2,699,700) | |
| Operating lease liabilities, current (included in Accrued expenses and other current liabilities) | 37,800) | 30,300) | 19,000) | 12,400) | 12,400) | |
| Operating lease liabilities, noncurrent (included in Other noncurrent liabilities) | 229,000) | 204,100) | 68,700) | 55,800) | 55,800) | |
| Total debt (including operating lease liability) | 2,972,700) | 2,938,800) | 2,790,600) | 2,769,600) | 2,767,900) | |
| Total assets | 40,558,700) | 37,759,400) | 33,080,200) | 29,214,500) | 25,434,800) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.07 | 0.08 | 0.08 | 0.09 | 0.11 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | — | 0.50 | 0.45 | 0.46 | 0.53 | |
| Amgen Inc. | — | 0.66 | 0.67 | 0.61 | 0.56 | |
| Bristol-Myers Squibb Co. | — | 0.55 | 0.44 | 0.42 | 0.42 | |
| Danaher Corp. | — | 0.22 | 0.23 | 0.25 | 0.28 | |
| Eli Lilly & Co. | — | 0.44 | 0.41 | 0.34 | 0.36 | |
| Gilead Sciences Inc. | — | 0.46 | 0.41 | 0.41 | 0.40 | |
| Johnson & Johnson | — | 0.21 | 0.18 | 0.22 | 0.19 | |
| Merck & Co. Inc. | — | 0.33 | 0.34 | 0.29 | 0.33 | |
| Pfizer Inc. | — | 0.31 | 0.33 | 0.20 | 0.23 | |
| Thermo Fisher Scientific Inc. | — | 0.34 | 0.37 | 0.37 | 0.38 | |
| Vertex Pharmaceuticals Inc. | — | 0.08 | 0.04 | 0.05 | 0.07 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 0.37 | 0.35 | 0.32 | 0.34 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | — | 0.33 | 0.32 | 0.29 | 0.31 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 2,972,700 ÷ 40,558,700 = 0.07
2 Click competitor name to see calculations.
The Debt to Assets ratio, including operating lease liability, demonstrates a consistent downward trend over the five-year period. Total debt exhibits a modest increase, while total assets experience more substantial growth, driving the observed decline in the ratio.
- Debt to Assets Ratio Trend
- The ratio decreased from 0.11 in 2021 to 0.07 in 2025. This indicates a strengthening solvency position, as the proportion of assets financed by debt is diminishing.
- Total Debt
- Total debt, inclusive of operating lease liabilities, increased from US$2,767,900 thousand in 2021 to US$2,972,700 thousand in 2025. The growth is relatively contained, with the largest single-year increase occurring between 2023 and 2024.
- Total Assets
- Total assets grew significantly, increasing from US$25,434,800 thousand in 2021 to US$40,558,700 thousand in 2025. This substantial asset growth outpaces the increase in total debt, contributing to the declining Debt to Assets ratio.
The consistent reduction in the Debt to Assets ratio suggests a decreasing reliance on debt financing and improved financial leverage. The company appears to be effectively utilizing assets to generate growth, reducing the relative burden of its debt obligations.
Financial Leverage
Regeneron Pharmaceuticals Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 40,558,700) | 37,759,400) | 33,080,200) | 29,214,500) | 25,434,800) | |
| Stockholders’ equity | 31,256,900) | 29,353,600) | 25,973,100) | 22,664,000) | 18,768,800) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.30 | 1.29 | 1.27 | 1.29 | 1.36 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | — | 40.65 | 13.00 | 8.04 | 9.51 | |
| Amgen Inc. | — | 15.63 | 15.59 | 17.79 | 9.13 | |
| Bristol-Myers Squibb Co. | — | 5.67 | 3.23 | 3.12 | 3.04 | |
| Danaher Corp. | — | 1.57 | 1.58 | 1.68 | 1.84 | |
| Eli Lilly & Co. | — | 5.55 | 5.94 | 4.65 | 5.44 | |
| Gilead Sciences Inc. | — | 3.05 | 2.72 | 2.97 | 3.23 | |
| Johnson & Johnson | — | 2.52 | 2.44 | 2.44 | 2.46 | |
| Merck & Co. Inc. | — | 2.53 | 2.84 | 2.37 | 2.77 | |
| Pfizer Inc. | — | 2.42 | 2.54 | 2.06 | 2.35 | |
| Thermo Fisher Scientific Inc. | — | 1.96 | 2.11 | 2.21 | 2.33 | |
| Vertex Pharmaceuticals Inc. | — | 1.37 | 1.29 | 1.30 | 1.33 | |
| Financial Leverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 2.93 | 2.85 | 2.62 | 2.86 | |
| Financial Leverage, Industry | ||||||
| Health Care | — | 2.75 | 2.70 | 2.57 | 2.69 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 40,558,700 ÷ 31,256,900 = 1.30
2 Click competitor name to see calculations.
The financial leverage of the company, as measured by the ratio of total assets to stockholders’ equity, demonstrates a relatively stable pattern over the five-year period from 2021 to 2025. While fluctuations are present, the ratio remains within a narrow range, indicating a consistent approach to financing assets with a mix of equity and debt.
- Overall Trend
- The financial leverage ratio initially decreased from 1.36 in 2021 to 1.27 in 2022, suggesting a reduction in the proportion of assets financed by equity. It then experienced a slight increase to 1.29 in 2023, followed by a stabilization at 1.29 in 2024 and a marginal increase to 1.30 in 2025. This indicates a modest return towards the initial leverage level observed in 2021.
- Year-over-Year Changes
- The most significant change occurred between 2021 and 2022, with a decrease of 0.07. Subsequent year-over-year changes were minimal, generally fluctuating within a range of 0.01 to 0.02. This suggests that the company’s capital structure remained relatively consistent after the initial adjustment in 2022.
- Asset and Equity Growth
- Total assets increased consistently throughout the period, from US$25,434,800 thousand in 2021 to US$40,558,700 thousand in 2025. Stockholders’ equity also increased, though at a slightly slower pace, moving from US$18,768,800 thousand to US$31,256,900 thousand over the same timeframe. The combined effect of these increases, coupled with the relatively stable leverage ratio, suggests that asset growth was primarily funded through a combination of retained earnings and potentially debt financing.
In conclusion, the company maintains a moderate and stable level of financial leverage. The observed fluctuations are minor and do not indicate a significant shift in the company’s financing strategy. The consistent growth in both assets and equity, alongside the stable leverage ratio, suggests a balanced approach to capital structure management.
Interest Coverage
Regeneron Pharmaceuticals Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 4,504,900) | 4,412,600) | 3,953,600) | 4,338,400) | 8,075,300) | |
| Add: Income tax expense | 725,800) | 367,300) | 245,700) | 520,400) | 1,250,500) | |
| Add: Interest expense | 43,800) | 55,200) | 73,000) | 59,400) | 57,300) | |
| Earnings before interest and tax (EBIT) | 5,274,500) | 4,835,100) | 4,272,300) | 4,918,200) | 9,383,100) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 120.42 | 87.59 | 58.52 | 82.80 | 163.75 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | — | 2.32 | 3.81 | 7.04 | 6.36 | |
| Amgen Inc. | — | 2.46 | 3.73 | 6.22 | 6.60 | |
| Bristol-Myers Squibb Co. | — | -3.30 | 8.24 | 7.26 | 7.07 | |
| Danaher Corp. | — | 17.71 | 18.64 | 40.30 | 32.92 | |
| Eli Lilly & Co. | — | 17.24 | 14.49 | 21.53 | 19.12 | |
| Gilead Sciences Inc. | — | 1.71 | 8.27 | 7.22 | 9.27 | |
| Johnson & Johnson | — | 23.10 | 20.51 | 79.71 | 125.46 | |
| Merck & Co. Inc. | — | 16.69 | 2.65 | 18.09 | 18.22 | |
| Pfizer Inc. | — | 3.60 | 1.48 | 29.05 | 19.83 | |
| Thermo Fisher Scientific Inc. | — | 6.03 | 5.54 | 11.56 | 17.49 | |
| Vertex Pharmaceuticals Inc. | — | 9.12 | 100.32 | 78.23 | 45.40 | |
| Interest Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 5.51 | 6.43 | 15.40 | 14.91 | |
| Interest Coverage, Industry | ||||||
| Health Care | — | 6.11 | 7.51 | 14.75 | 14.14 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,274,500 ÷ 43,800 = 120.42
2 Click competitor name to see calculations.
The interest coverage ratio experienced significant fluctuation over the five-year period. Initial values were notably high, followed by a substantial decline, and then a recovery towards levels approaching the initial period.
- Earnings Before Interest and Tax (EBIT)
- EBIT demonstrated a considerable decrease from 2021 to 2022, followed by a further decline in 2023. A moderate increase was observed in 2024, and this upward trend continued into 2025, reaching a value approaching that of 2021. This suggests potential volatility in core operating profitability.
- Interest Expense
- Interest expense exhibited a modest increase from 2021 to 2023, peaking at US$73,000 thousand. Subsequently, a decrease in interest expense was observed in both 2024 and 2025, falling to US$43,800 thousand. This suggests changes in the company’s debt structure or interest rates paid on outstanding debt.
- Interest Coverage Ratio
- The interest coverage ratio began at a high of 163.75 in 2021. A sharp decrease occurred in 2022, falling to 82.80, and continued downward to 58.52 in 2023. The ratio then rebounded significantly in 2024 to 87.59, and further improved to 120.42 in 2025. This pattern indicates a period of reduced ability to meet interest obligations, followed by a strengthening of that ability. The recovery in the ratio from 2023 onwards is likely attributable to the combined effect of increasing EBIT and decreasing interest expense.
The fluctuations in the interest coverage ratio warrant further investigation to understand the underlying drivers of the changes in both EBIT and interest expense. While the ratio has recovered, the period of decline suggests potential vulnerability to changes in operating performance or interest rate environments.
Fixed Charge Coverage
Regeneron Pharmaceuticals Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 4,504,900) | 4,412,600) | 3,953,600) | 4,338,400) | 8,075,300) | |
| Add: Income tax expense | 725,800) | 367,300) | 245,700) | 520,400) | 1,250,500) | |
| Add: Interest expense | 43,800) | 55,200) | 73,000) | 59,400) | 57,300) | |
| Earnings before interest and tax (EBIT) | 5,274,500) | 4,835,100) | 4,272,300) | 4,918,200) | 9,383,100) | |
| Add: Operating lease costs | 35,800) | 36,500) | 19,200) | 12,400) | 10,300) | |
| Earnings before fixed charges and tax | 5,310,300) | 4,871,600) | 4,291,500) | 4,930,600) | 9,393,400) | |
| Interest expense | 43,800) | 55,200) | 73,000) | 59,400) | 57,300) | |
| Operating lease costs | 35,800) | 36,500) | 19,200) | 12,400) | 10,300) | |
| Fixed charges | 79,600) | 91,700) | 92,200) | 71,800) | 67,600) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 66.71 | 53.13 | 46.55 | 68.67 | 138.96 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| AbbVie Inc. | — | 2.24 | 3.59 | 6.54 | 5.90 | |
| Amgen Inc. | — | 2.37 | 3.55 | 5.52 | 5.67 | |
| Bristol-Myers Squibb Co. | — | -2.75 | 6.69 | 6.30 | 6.01 | |
| Danaher Corp. | — | 9.05 | 9.55 | 13.41 | 10.85 | |
| Eli Lilly & Co. | — | 13.81 | 10.98 | 15.17 | 13.33 | |
| Gilead Sciences Inc. | — | 1.61 | 7.18 | 6.30 | 8.15 | |
| Johnson & Johnson | — | 18.47 | 16.50 | 38.72 | 48.16 | |
| Merck & Co. Inc. | — | 13.31 | 2.27 | 13.69 | 13.08 | |
| Pfizer Inc. | — | 3.13 | 1.34 | 18.79 | 14.22 | |
| Thermo Fisher Scientific Inc. | — | 5.01 | 4.61 | 8.12 | 12.19 | |
| Vertex Pharmaceuticals Inc. | — | 2.85 | 48.66 | 47.97 | 29.62 | |
| Fixed Charge Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 4.80 | 5.40 | 11.85 | 11.49 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | — | 5.15 | 6.08 | 10.95 | 10.48 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 5,310,300 ÷ 79,600 = 66.71
2 Click competitor name to see calculations.
The company’s fixed charge coverage exhibited significant fluctuation between 2021 and 2025. Initial coverage was strong, but subsequently declined before showing signs of recovery.
- Earnings before Fixed Charges and Tax
- Earnings before fixed charges and tax decreased from US$9,393.4 million in 2021 to US$4,930.6 million in 2022, representing a substantial reduction. A further decrease was observed in 2023, falling to US$4,291.5 million. A modest increase occurred in 2024, reaching US$4,871.6 million, followed by another increase to US$5,310.3 million in 2025. This indicates a period of earnings volatility followed by a recovery towards the end of the analyzed period.
- Fixed Charges
- Fixed charges generally increased between 2021 and 2023, rising from US$67.6 million to US$92.2 million. A slight decrease was noted in 2024, with fixed charges at US$91.7 million, and a more pronounced decrease occurred in 2025, falling to US$79.6 million. The fluctuations in fixed charges appear relatively modest compared to the changes in earnings before fixed charges and tax.
- Fixed Charge Coverage
- The fixed charge coverage ratio began at a high of 138.96 in 2021. A dramatic decline was observed in 2022, with the ratio falling to 68.67. This downward trend continued in 2023, reaching a low of 46.55. The ratio showed improvement in 2024, increasing to 53.13, and further improved to 66.71 in 2025. While the ratio recovered from its low point, it did not return to the levels seen in 2021. The ratio’s movement closely mirrors the trend in earnings before fixed charges and tax, suggesting a strong correlation between the two.
Overall, the company experienced a period of declining ability to cover its fixed charges, followed by a recovery. The recovery in the fixed charge coverage ratio in the later years of the period suggests improving financial health, but the ratio remains significantly below its initial level.