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

Abbott Laboratories (NYSE:ABT)

Analysis of Solvency Ratios

Beginner level

Solvency Ratios (Summary)

Abbott Laboratories, 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 0.58 0.64 0.90 1.07 0.42
Debt to equity (including operating lease liability) 0.61 0.64 0.90 1.07 0.42
Debt to capital 0.37 0.39 0.47 0.52 0.30
Debt to capital (including operating lease liability) 0.38 0.39 0.47 0.52 0.30
Debt to assets 0.27 0.29 0.37 0.42 0.22
Debt to assets (including operating lease liability) 0.28 0.29 0.37 0.42 0.22
Financial leverage 2.18 2.20 2.47 2.56 1.94
Coverage Ratios
Interest coverage 7.09 4.48 3.47 4.28 20.53
Fixed charge coverage 5.14 4.48 3.47 4.28 20.53

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 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 equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Abbott Laboratories’s debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Abbott Laboratories’s debt to equity ratio (including operating lease liability) improved from 2017 to 2018 and from 2018 to 2019.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Abbott Laboratories’s debt to capital ratio improved from 2017 to 2018 and 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. Abbott Laboratories’s debt to capital ratio (including operating lease liability) improved from 2017 to 2018 and from 2018 to 2019.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Abbott Laboratories’s debt to assets ratio improved 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. Abbott Laboratories’s debt to assets ratio (including operating lease liability) improved from 2017 to 2018 and from 2018 to 2019.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Abbott Laboratories’s financial leverage ratio decreased 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. Abbott Laboratories’s interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Abbott Laboratories’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Equity

Abbott Laboratories, 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 201  200  206  1,322  3,127 
Current portion of long-term debt 1,277  508 
Long-term debt, excluding current portion 16,661  19,359  27,210  20,681  5,871 
Total debt 18,139  19,566  27,924  22,006  9,001 
 
Total Abbott shareholders’ investment 31,088  30,524  30,897  20,538  21,211 
Solvency Ratio
Debt to equity1 0.58 0.64 0.90 1.07 0.42
Benchmarks
Debt to Equity, Competitors2
AbbVie Inc. 7.33 7.95 8.03
Amgen Inc. 3.09 2.71 1.40 1.16 1.12
Biogen Inc. 0.45 0.46 0.47 0.54 0.70
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 1.09 0.97 0.92 0.83 0.70
Debt to Equity, Industry
Health Care 0.90 0.82 0.83 0.78 0.71

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 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 ÷ Total Abbott shareholders’ investment
= 18,139 ÷ 31,088 = 0.58

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Abbott Laboratories’s debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Equity (including Operating Lease Liability)

Abbott Laboratories, 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 201  200  206  1,322  3,127 
Current portion of long-term debt 1,277  508 
Long-term debt, excluding current portion 16,661  19,359  27,210  20,681  5,871 
Total debt 18,139  19,566  27,924  22,006  9,001 
Current operating lease liabilities (included in Other accrued liabilities) 205  —  —  —  — 
Long-term operating lease liabilities 755  —  —  —  — 
Total debt (including operating lease liability) 19,099  19,566  27,924  22,006  9,001 
 
Total Abbott shareholders’ investment 31,088  30,524  30,897  20,538  21,211 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.61 0.64 0.90 1.07 0.42
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
AbbVie Inc. 7.33 7.95 8.03
Amgen Inc. 3.15 2.71 1.40 1.16 1.12
Biogen Inc. 0.48 0.46 0.47 0.54 0.70
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 1.12 0.97 0.92 0.83 0.70
Debt to Equity (including Operating Lease Liability), Industry
Health Care 0.92 0.82 0.83 0.78 0.71

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 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) ÷ Total Abbott shareholders’ investment
= 19,099 ÷ 31,088 = 0.61

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Abbott Laboratories’s debt to equity ratio (including operating lease liability) improved from 2017 to 2018 and from 2018 to 2019.

Debt to Capital

Abbott Laboratories, 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 201  200  206  1,322  3,127 
Current portion of long-term debt 1,277  508 
Long-term debt, excluding current portion 16,661  19,359  27,210  20,681  5,871 
Total debt 18,139  19,566  27,924  22,006  9,001 
Total Abbott shareholders’ investment 31,088  30,524  30,897  20,538  21,211 
Total capital 49,227  50,090  58,821  42,544  30,212 
Solvency Ratio
Debt to capital1 0.37 0.39 0.47 0.52 0.30
Benchmarks
Debt to Capital, Competitors2
AbbVie Inc. 1.14 1.27 0.88 0.89 0.89
Amgen Inc. 0.76 0.73 0.58 0.54 0.53
Biogen Inc. 0.31 0.31 0.32 0.35 0.41
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 0.52 0.49 0.48 0.45 0.41
Debt to Capital, Industry
Health Care 0.47 0.45 0.45 0.44 0.41

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 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
= 18,139 ÷ 49,227 = 0.37

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. Abbott Laboratories’s debt to capital ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Capital (including Operating Lease Liability)

Abbott Laboratories, 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 201  200  206  1,322  3,127 
Current portion of long-term debt 1,277  508 
Long-term debt, excluding current portion 16,661  19,359  27,210  20,681  5,871 
Total debt 18,139  19,566  27,924  22,006  9,001 
Current operating lease liabilities (included in Other accrued liabilities) 205  —  —  —  — 
Long-term operating lease liabilities 755  —  —  —  — 
Total debt (including operating lease liability) 19,099  19,566  27,924  22,006  9,001 
Total Abbott shareholders’ investment 31,088  30,524  30,897  20,538  21,211 
Total capital (including operating lease liability) 50,187  50,090  58,821  42,544  30,212 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.38 0.39 0.47 0.52 0.30
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
AbbVie Inc. 1.14 1.27 0.88 0.89 0.89
Amgen Inc. 0.76 0.73 0.58 0.54 0.53
Biogen Inc. 0.33 0.31 0.32 0.35 0.41
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 0.49 0.48 0.45 0.41
Debt to Capital (including Operating Lease Liability), Industry
Health Care 0.48 0.45 0.45 0.44 0.41

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 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)
= 19,099 ÷ 50,187 = 0.38

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. Abbott Laboratories’s debt to capital ratio (including operating lease liability) improved from 2017 to 2018 and from 2018 to 2019.

Debt to Assets

Abbott Laboratories, 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 201  200  206  1,322  3,127 
Current portion of long-term debt 1,277  508 
Long-term debt, excluding current portion 16,661  19,359  27,210  20,681  5,871 
Total debt 18,139  19,566  27,924  22,006  9,001 
 
Total assets 67,887  67,173  76,250  52,666  41,247 
Solvency Ratio
Debt to assets1 0.27 0.29 0.37 0.42 0.22
Benchmarks
Debt to Assets, Competitors2
AbbVie Inc. 0.75 0.68 0.53 0.56 0.60
Amgen Inc. 0.50 0.51 0.44 0.45 0.44
Biogen Inc. 0.22 0.23 0.25 0.28 0.33
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 0.29
Debt to Assets, Industry
Health Care 0.33 0.31 0.31 0.31 0.29

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 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
= 18,139 ÷ 67,887 = 0.27

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. Abbott Laboratories’s debt to assets ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Assets (including Operating Lease Liability)

Abbott Laboratories, 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 201  200  206  1,322  3,127 
Current portion of long-term debt 1,277  508 
Long-term debt, excluding current portion 16,661  19,359  27,210  20,681  5,871 
Total debt 18,139  19,566  27,924  22,006  9,001 
Current operating lease liabilities (included in Other accrued liabilities) 205  —  —  —  — 
Long-term operating lease liabilities 755  —  —  —  — 
Total debt (including operating lease liability) 19,099  19,566  27,924  22,006  9,001 
 
Total assets 67,887  67,173  76,250  52,666  41,247 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.28 0.29 0.37 0.42 0.22
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
AbbVie Inc. 0.75 0.68 0.53 0.56 0.60
Amgen Inc. 0.51 0.51 0.44 0.45 0.44
Biogen Inc. 0.24 0.23 0.25 0.28 0.33
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 0.29
Debt to Assets (including Operating Lease Liability), Industry
Health Care 0.34 0.31 0.31 0.31 0.29

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 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
= 19,099 ÷ 67,887 = 0.28

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. Abbott Laboratories’s debt to assets ratio (including operating lease liability) improved from 2017 to 2018 and from 2018 to 2019.

Financial Leverage

Abbott Laboratories, 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 67,887  67,173  76,250  52,666  41,247 
Total Abbott shareholders’ investment 31,088  30,524  30,897  20,538  21,211 
Solvency Ratio
Financial leverage1 2.18 2.20 2.47 2.56 1.94
Benchmarks
Financial Leverage, Competitors2
AbbVie Inc. 13.89 14.26 13.45
Amgen Inc. 6.17 5.31 3.17 2.60 2.55
Biogen Inc. 2.04 1.94 1.88 1.88 2.08
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 3.13 3.02 2.85 2.63 2.44
Financial Leverage, Industry
Health Care 2.75 2.66 2.64 2.52 2.41

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 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 ÷ Total Abbott shareholders’ investment
= 67,887 ÷ 31,088 = 2.18

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Abbott Laboratories’s financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

Interest Coverage

Abbott Laboratories, 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 3,687  2,368  477  1,400  4,423 
Less: Net earnings from discontinued operations, net of taxes —  34  124  337  1,817 
Add: Income tax expense 390  539  1,878  350  577 
Add: Interest expense 670  826  904  431  163 
Earnings before interest and tax (EBIT) 4,747  3,699  3,135  1,844  3,346 
Solvency Ratio
Interest coverage1 7.09 4.48 3.47 4.28 20.53
Benchmarks
Interest Coverage, Competitors2
AbbVie Inc. 5.72 4.86 7.72 8.53 10.24
Amgen Inc. 8.09 7.86 8.36 8.27 8.29
Biogen Inc. 38.60 30.41 21.45 19.97 50.79
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 11.66 10.75 11.30 12.88 15.58
Interest Coverage, Industry
Health Care 10.32 10.02 10.37 10.96 13.39

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 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
= 4,747 ÷ 670 = 7.09

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. Abbott Laboratories’s interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Fixed Charge Coverage

Abbott Laboratories, 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 3,687  2,368  477  1,400  4,423 
Less: Net earnings from discontinued operations, net of taxes —  34  124  337  1,817 
Add: Income tax expense 390  539  1,878  350  577 
Add: Interest expense 670  826  904  431  163 
Earnings before interest and tax (EBIT) 4,747  3,699  3,135  1,844  3,346 
Add: Operating lease cost 314  —  —  —  — 
Earnings before fixed charges and tax 5,061  3,699  3,135  1,844  3,346 
 
Interest expense 670  826  904  431  163 
Operating lease cost 314  —  —  —  — 
Fixed charges 984  826  904  431  163 
Solvency Ratio
Fixed charge coverage1 5.14 4.48 3.47 4.28 20.53
Benchmarks
Fixed Charge Coverage, Competitors2
AbbVie Inc. 5.42 4.44 6.86 7.54 8.68
Amgen Inc. 7.12 7.13 7.56 7.57 7.50
Biogen Inc. 24.21 23.25 17.23 16.01 29.98
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 9.40 8.99 9.38 10.49 12.21
Fixed Charge Coverage, Industry
Health Care 7.94 7.90 8.16 8.63 10.02

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 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
= 5,061 ÷ 984 = 5.14

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. Abbott Laboratories’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.