Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Solvency Ratios (Summary)
AbbVie Inc., solvency ratios
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
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
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
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
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
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
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
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
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
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. |