Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Equity (including Operating Lease Liability)
Debt to Capital
Debt to Capital (including Operating Lease Liability)
Debt to Assets
Debt to Assets (including Operating Lease Liability)
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Abbott Laboratories, solvency ratios

	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.

Abbott Laboratories, 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	201	200	206	1,322	3,127
Current portion of long-term debt	1,277	7	508	3	3
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.

Abbott Laboratories, 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	201	200	206	1,322	3,127
Current portion of long-term debt	1,277	7	508	3	3
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.

Abbott Laboratories, 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	201	200	206	1,322	3,127
Current portion of long-term debt	1,277	7	508	3	3
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.

Abbott Laboratories, 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	201	200	206	1,322	3,127
Current portion of long-term debt	1,277	7	508	3	3
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.

Abbott Laboratories, 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	201	200	206	1,322	3,127
Current portion of long-term debt	1,277	7	508	3	3
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.

Abbott Laboratories, 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	201	200	206	1,322	3,127
Current portion of long-term debt	1,277	7	508	3	3
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.

Abbott Laboratories, 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	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.

Abbott Laboratories, 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	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.

Abbott Laboratories, 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	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.

Abbott Laboratories (NYSE:ABT)

Analysis of Solvency Ratios

Solvency Ratios (Summary)

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Fixed Charge Coverage