Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

AbbVie Inc. (NYSE:ABBV)

Analysis of Solvency Ratios

Beginner level

Solvency Ratios (Summary)

AbbVie Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Debt Ratios
Debt to equity 7.33 7.95 8.03
Debt to equity (including operating lease liability) 7.33 7.95 8.03
Debt to capital 1.14 1.27 0.88 0.89 0.89
Debt to capital (including operating lease liability) 1.14 1.27 0.88 0.89 0.89
Debt to assets 0.75 0.68 0.53 0.56 0.60
Debt to assets (including operating lease liability) 0.75 0.68 0.53 0.56 0.60
Financial leverage 13.89 14.26 13.45
Coverage Ratios
Interest coverage 5.72 4.86 7.72 8.53 10.24
Fixed charge coverage 5.42 4.44 6.86 7.54 8.68

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. AbbVie Inc.’s debt to capital ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. AbbVie Inc.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. AbbVie Inc.’s debt to assets ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. AbbVie Inc.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. AbbVie Inc.’s interest coverage ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. AbbVie Inc.’s fixed charge coverage ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Debt to Equity

AbbVie Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings —  3,699  400  377  406 
Current portion of long-term debt and finance lease obligations 3,753  1,609  6,015  25  2,025 
Long-term debt and finance lease obligations, excluding current portion 62,975  35,002  30,953  36,440  29,240 
Total debt 66,728  40,310  37,368  36,842  31,671 
 
Stockholders’ equity (deficit) (8,172) (8,446) 5,097  4,636  3,945 
Solvency Ratio
Debt to equity1 7.33 7.95 8.03
Benchmarks
Debt to Equity, Competitors2
Abbott Laboratories 0.58 0.64 0.90 1.07 0.42
Amgen Inc. 3.09 2.71 1.40 1.16 1.12
Bristol-Myers Squibb Co. 0.91 0.52 0.68 0.41 0.47
Eli Lilly & Co. 5.88 1.30 1.18 0.74 0.55
Gilead Sciences Inc. 1.09 1.28 1.64 1.39 1.20
Illumina Inc. 0.25 0.53 0.49 0.58 0.60
Johnson & Johnson 0.47 0.51 0.57 0.39 0.28
Merck & Co. Inc. 1.02 0.94 0.71 0.62 0.59
Pfizer Inc. 0.83 0.66 0.61 0.71 0.60
Regeneron Pharmaceuticals Inc. 0.06 0.08 0.11 0.11 0.10
Vertex Pharmaceuticals Inc. 0.09 0.13 0.29 0.71 0.86
Zoetis Inc. 2.38 2.95 2.80 3.00 4.56
Debt to Equity, Sector
Pharmaceuticals & Biotechnology 1.12 1.00 0.94 0.84 0.70
Debt to Equity, Industry
Health Care 0.91 0.83 0.84 0.79 0.71

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 66,728 ÷ -8,172 =

2 Click competitor name to see calculations.


Debt to Equity (including Operating Lease Liability)

AbbVie Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings —  3,699  400  377  406 
Current portion of long-term debt and finance lease obligations 3,753  1,609  6,015  25  2,025 
Long-term debt and finance lease obligations, excluding current portion 62,975  35,002  30,953  36,440  29,240 
Total debt 66,728  40,310  37,368  36,842  31,671 
Current operating lease liabilities (included in Accounts payable and accrued liabilities) 109  —  —  —  — 
Noncurrent operating lease liabilities (included in Other long-term liabilities) 251  —  —  —  — 
Total debt (including operating lease liability) 67,088  40,310  37,368  36,842  31,671 
 
Stockholders’ equity (deficit) (8,172) (8,446) 5,097  4,636  3,945 
Solvency Ratio
Debt to equity (including operating lease liability)1 7.33 7.95 8.03
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.61 0.64 0.90 1.07 0.42
Amgen Inc. 3.15 2.71 1.40 1.16 1.12
Bristol-Myers Squibb Co. 0.92 0.52 0.68 0.41 0.47
Eli Lilly & Co. 6.11 1.30 1.18 0.74 0.55
Gilead Sciences Inc. 1.12 1.28 1.64 1.39 1.20
Illumina Inc. 0.41 0.53 0.49 0.58 0.60
Johnson & Johnson 0.48 0.51 0.57 0.39 0.28
Merck & Co. Inc. 1.06 0.94 0.71 0.62 0.59
Pfizer Inc. 0.85 0.66 0.61 0.71 0.60
Regeneron Pharmaceuticals Inc. 0.07 0.08 0.11 0.11 0.10
Vertex Pharmaceuticals Inc. 0.11 0.13 0.29 0.71 0.86
Zoetis Inc. 2.45 2.95 2.80 3.00 4.56
Debt to Equity (including Operating Lease Liability), Sector
Pharmaceuticals & Biotechnology 1.15 1.00 0.94 0.84 0.70
Debt to Equity (including Operating Lease Liability), Industry
Health Care 0.94 0.83 0.84 0.79 0.71

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit)
= 67,088 ÷ -8,172 =

2 Click competitor name to see calculations.


Debt to Capital

AbbVie Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings —  3,699  400  377  406 
Current portion of long-term debt and finance lease obligations 3,753  1,609  6,015  25  2,025 
Long-term debt and finance lease obligations, excluding current portion 62,975  35,002  30,953  36,440  29,240 
Total debt 66,728  40,310  37,368  36,842  31,671 
Stockholders’ equity (deficit) (8,172) (8,446) 5,097  4,636  3,945 
Total capital 58,556  31,864  42,465  41,478  35,616 
Solvency Ratio
Debt to capital1 1.14 1.27 0.88 0.89 0.89
Benchmarks
Debt to Capital, Competitors2
Abbott Laboratories 0.37 0.39 0.47 0.52 0.30
Amgen Inc. 0.76 0.73 0.58 0.54 0.53
Bristol-Myers Squibb Co. 0.48 0.34 0.40 0.29 0.32
Eli Lilly & Co. 0.85 0.57 0.54 0.42 0.35
Gilead Sciences Inc. 0.52 0.56 0.62 0.58 0.54
Illumina Inc. 0.20 0.35 0.33 0.37 0.37
Johnson & Johnson 0.32 0.34 0.37 0.28 0.22
Merck & Co. Inc. 0.50 0.48 0.42 0.38 0.37
Pfizer Inc. 0.45 0.40 0.38 0.41 0.38
Regeneron Pharmaceuticals Inc. 0.06 0.07 0.10 0.10 0.09
Vertex Pharmaceuticals Inc. 0.09 0.12 0.22 0.42 0.46
Zoetis Inc. 0.70 0.75 0.74 0.75 0.82
Debt to Capital, Sector
Pharmaceuticals & Biotechnology 0.53 0.50 0.48 0.46 0.41
Debt to Capital, Industry
Health Care 0.48 0.45 0.46 0.44 0.41

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 66,728 ÷ 58,556 = 1.14

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. AbbVie Inc.’s debt to capital ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Debt to Capital (including Operating Lease Liability)

AbbVie Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings —  3,699  400  377  406 
Current portion of long-term debt and finance lease obligations 3,753  1,609  6,015  25  2,025 
Long-term debt and finance lease obligations, excluding current portion 62,975  35,002  30,953  36,440  29,240 
Total debt 66,728  40,310  37,368  36,842  31,671 
Current operating lease liabilities (included in Accounts payable and accrued liabilities) 109  —  —  —  — 
Noncurrent operating lease liabilities (included in Other long-term liabilities) 251  —  —  —  — 
Total debt (including operating lease liability) 67,088  40,310  37,368  36,842  31,671 
Stockholders’ equity (deficit) (8,172) (8,446) 5,097  4,636  3,945 
Total capital (including operating lease liability) 58,916  31,864  42,465  41,478  35,616 
Solvency Ratio
Debt to capital (including operating lease liability)1 1.14 1.27 0.88 0.89 0.89
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.38 0.39 0.47 0.52 0.30
Amgen Inc. 0.76 0.73 0.58 0.54 0.53
Bristol-Myers Squibb Co. 0.48 0.34 0.40 0.29 0.32
Eli Lilly & Co. 0.86 0.57 0.54 0.42 0.35
Gilead Sciences Inc. 0.53 0.56 0.62 0.58 0.54
Illumina Inc. 0.29 0.35 0.33 0.37 0.37
Johnson & Johnson 0.33 0.34 0.37 0.28 0.22
Merck & Co. Inc. 0.51 0.48 0.42 0.38 0.37
Pfizer Inc. 0.46 0.40 0.38 0.41 0.38
Regeneron Pharmaceuticals Inc. 0.06 0.07 0.10 0.10 0.09
Vertex Pharmaceuticals Inc. 0.10 0.12 0.22 0.42 0.46
Zoetis Inc. 0.71 0.75 0.74 0.75 0.82
Debt to Capital (including Operating Lease Liability), Sector
Pharmaceuticals & Biotechnology 0.53 0.50 0.48 0.46 0.41
Debt to Capital (including Operating Lease Liability), Industry
Health Care 0.48 0.45 0.46 0.44 0.41

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 67,088 ÷ 58,916 = 1.14

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. AbbVie Inc.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Debt to Assets

AbbVie Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings —  3,699  400  377  406 
Current portion of long-term debt and finance lease obligations 3,753  1,609  6,015  25  2,025 
Long-term debt and finance lease obligations, excluding current portion 62,975  35,002  30,953  36,440  29,240 
Total debt 66,728  40,310  37,368  36,842  31,671 
 
Total assets 89,115  59,352  70,786  66,099  53,050 
Solvency Ratio
Debt to assets1 0.75 0.68 0.53 0.56 0.60
Benchmarks
Debt to Assets, Competitors2
Abbott Laboratories 0.27 0.29 0.37 0.42 0.22
Amgen Inc. 0.50 0.51 0.44 0.45 0.44
Bristol-Myers Squibb Co. 0.36 0.21 0.24 0.20 0.21
Eli Lilly & Co. 0.39 0.29 0.30 0.27 0.22
Gilead Sciences Inc. 0.40 0.43 0.48 0.46 0.43
Illumina Inc. 0.16 0.29 0.25 0.30 0.30
Johnson & Johnson 0.18 0.20 0.22 0.19 0.15
Merck & Co. Inc. 0.31 0.30 0.28 0.26 0.26
Pfizer Inc. 0.31 0.26 0.25 0.25 0.23
Regeneron Pharmaceuticals Inc. 0.05 0.06 0.08 0.07 0.07
Vertex Pharmaceuticals Inc. 0.07 0.09 0.16 0.28 0.32
Zoetis Inc. 0.56 0.60 0.58 0.58 0.62
Debt to Assets, Sector
Pharmaceuticals & Biotechnology 0.35 0.32 0.32 0.31 0.28
Debt to Assets, Industry
Health Care 0.33 0.31 0.32 0.31 0.29

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 66,728 ÷ 89,115 = 0.75

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. AbbVie Inc.’s debt to assets ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Assets (including Operating Lease Liability)

AbbVie Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings —  3,699  400  377  406 
Current portion of long-term debt and finance lease obligations 3,753  1,609  6,015  25  2,025 
Long-term debt and finance lease obligations, excluding current portion 62,975  35,002  30,953  36,440  29,240 
Total debt 66,728  40,310  37,368  36,842  31,671 
Current operating lease liabilities (included in Accounts payable and accrued liabilities) 109  —  —  —  — 
Noncurrent operating lease liabilities (included in Other long-term liabilities) 251  —  —  —  — 
Total debt (including operating lease liability) 67,088  40,310  37,368  36,842  31,671 
 
Total assets 89,115  59,352  70,786  66,099  53,050 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.75 0.68 0.53 0.56 0.60
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.28 0.29 0.37 0.42 0.22
Amgen Inc. 0.51 0.51 0.44 0.45 0.44
Bristol-Myers Squibb Co. 0.37 0.21 0.24 0.20 0.21
Eli Lilly & Co. 0.41 0.29 0.30 0.27 0.22
Gilead Sciences Inc. 0.41 0.43 0.48 0.46 0.43
Illumina Inc. 0.26 0.29 0.25 0.30 0.30
Johnson & Johnson 0.18 0.20 0.22 0.19 0.15
Merck & Co. Inc. 0.32 0.30 0.28 0.26 0.26
Pfizer Inc. 0.32 0.26 0.25 0.25 0.23
Regeneron Pharmaceuticals Inc. 0.05 0.06 0.08 0.07 0.07
Vertex Pharmaceuticals Inc. 0.08 0.09 0.16 0.28 0.32
Zoetis Inc. 0.58 0.60 0.58 0.58 0.62
Debt to Assets (including Operating Lease Liability), Sector
Pharmaceuticals & Biotechnology 0.36 0.32 0.32 0.31 0.28
Debt to Assets (including Operating Lease Liability), Industry
Health Care 0.34 0.31 0.32 0.31 0.29

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 67,088 ÷ 89,115 = 0.75

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. AbbVie Inc.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.

Financial Leverage

AbbVie Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Total assets 89,115  59,352  70,786  66,099  53,050 
Stockholders’ equity (deficit) (8,172) (8,446) 5,097  4,636  3,945 
Solvency Ratio
Financial leverage1 13.89 14.26 13.45
Benchmarks
Financial Leverage, Competitors2
Abbott Laboratories 2.18 2.20 2.47 2.56 1.94
Amgen Inc. 6.17 5.31 3.17 2.60 2.55
Bristol-Myers Squibb Co. 2.52 2.49 2.86 2.08 2.23
Eli Lilly & Co. 15.07 4.47 3.88 2.77 2.44
Gilead Sciences Inc. 2.74 2.98 3.44 3.02 2.80
Illumina Inc. 1.59 1.85 1.91 1.95 1.99
Johnson & Johnson 2.65 2.56 2.61 2.01 1.88
Merck & Co. Inc. 3.26 3.09 2.56 2.38 2.28
Pfizer Inc. 2.65 2.51 2.41 2.88 2.59
Regeneron Pharmaceuticals Inc. 1.34 1.34 1.43 1.57 1.53
Vertex Pharmaceuticals Inc. 1.37 1.41 1.75 2.50 2.66
Zoetis Inc. 4.26 4.93 4.85 5.14 7.41
Financial Leverage, Sector
Pharmaceuticals & Biotechnology 3.18 3.08 2.89 2.67 2.45
Financial Leverage, Industry
Health Care 2.77 2.68 2.66 2.54 2.41

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 89,115 ÷ -8,172 =

2 Click competitor name to see calculations.


Interest Coverage

AbbVie Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net earnings 7,882  5,687  5,309  5,953  5,144 
Add: Income tax expense 544  (490) 2,418  1,931  1,501 
Add: Interest expense 1,784  1,348  1,150  1,047  719 
Earnings before interest and tax (EBIT) 10,210  6,545  8,877  8,931  7,364 
Solvency Ratio
Interest coverage1 5.72 4.86 7.72 8.53 10.24
Benchmarks
Interest Coverage, Competitors2
Abbott Laboratories 7.09 4.48 3.47 4.28 20.53
Amgen Inc. 8.09 7.86 8.36 8.27 8.29
Bristol-Myers Squibb Co. 8.58 33.61 27.18 36.42 12.29
Eli Lilly & Co. 14.15 14.95 10.77 19.22 18.31
Gilead Sciences Inc. 6.19 8.24 13.10 18.74 32.48
Illumina Inc. 22.50 16.68 29.19 17.91 14.84
Johnson & Johnson 55.49 18.91 19.92 28.28 35.78
Merck & Co. Inc. 13.84 12.27 9.65 7.72 9.04
Pfizer Inc. 12.23 10.03 10.69 8.04 8.48
Regeneron Pharmaceuticals Inc. 81.43 91.55 83.75 185.82 87.03
Vertex Pharmaceuticals Inc. 24.84 9.28 0.77 0.17 -5.62
Zoetis Inc. 9.08 9.20 9.71 8.40 5.40
Interest Coverage, Sector
Pharmaceuticals & Biotechnology 11.09 10.29 10.99 12.62 14.99
Interest Coverage, Industry
Health Care 9.95 9.71 10.14 10.74 12.97

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 10,210 ÷ 1,784 = 5.72

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. AbbVie Inc.’s interest coverage ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Fixed Charge Coverage

AbbVie Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net earnings 7,882  5,687  5,309  5,953  5,144 
Add: Income tax expense 544  (490) 2,418  1,931  1,501 
Add: Interest expense 1,784  1,348  1,150  1,047  719 
Earnings before interest and tax (EBIT) 10,210  6,545  8,877  8,931  7,364 
Add: Operating lease cost 124  161  169  159  146 
Earnings before fixed charges and tax 10,334  6,706  9,046  9,090  7,510 
 
Interest expense 1,784  1,348  1,150  1,047  719 
Operating lease cost 124  161  169  159  146 
Fixed charges 1,908  1,509  1,319  1,206  865 
Solvency Ratio
Fixed charge coverage1 5.42 4.44 6.86 7.54 8.68
Benchmarks
Fixed Charge Coverage, Competitors2
Abbott Laboratories 5.14 4.48 3.47 4.28 20.53
Amgen Inc. 7.12 7.13 7.56 7.57 7.50
Bristol-Myers Squibb Co. 7.10 20.07 17.24 19.96 7.41
Eli Lilly & Co. 10.18 8.66 5.89 9.31 8.21
Gilead Sciences Inc. 5.46 7.58 12.26 17.36 29.28
Illumina Inc. 9.22 8.98 13.57 8.11 8.23
Johnson & Johnson 28.72 14.46 14.53 19.75 23.12
Merck & Co. Inc. 10.31 8.95 7.03 5.73 6.54
Pfizer Inc. 9.88 8.34 8.76 6.64 7.21
Vertex Pharmaceuticals Inc. 20.79 7.69 0.82 0.33 -4.45
Zoetis Inc. 7.85 7.73 8.55 7.43 4.63
Fixed Charge Coverage, Sector
Pharmaceuticals & Biotechnology 9.00 8.63 9.13 10.29 11.82
Fixed Charge Coverage, Industry
Health Care 7.68 7.66 7.99 8.46 9.74

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 10,334 ÷ 1,908 = 5.42

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. AbbVie Inc.’s fixed charge coverage ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.