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)
Allergan Inc., solvency ratios
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Allergan Inc. debt to equity ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 not reaching 2012 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Allergan Inc. debt to capital ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 not reaching 2012 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Allergan Inc. debt to assets ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 not reaching 2012 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Allergan Inc. financial leverage ratio increased from 2012 to 2013 but then slightly decreased from 2013 to 2014 not reaching 2012 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Allergan Inc. interest coverage ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Allergan Inc. fixed charge coverage ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Debt to Equity
Allergan Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Notes payable | 72,100) | 55,600) | 48,800) | 83,900) | 28,100) | |
| Convertible notes | —) | —) | —) | —) | 642,500) | |
| Long-term debt, excluding current maturities | 2,085,300) | 2,098,300) | 1,512,400) | 1,515,400) | 1,534,200) | |
| Total debt | 2,157,400) | 2,153,900) | 1,561,200) | 1,599,300) | 2,204,800) | |
| Total Allergan, Inc. stockholders’ equity | 7,753,000) | 6,463,200) | 5,837,100) | 5,309,600) | 4,757,700) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.28 | 0.33 | 0.27 | 0.30 | 0.46 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Debt to equity = Total debt ÷ Total Allergan, Inc. stockholders’ equity
= 2,157,400 ÷ 7,753,000 = 0.28
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. | Allergan Inc. debt to equity ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 not reaching 2012 level. |
Debt to Capital
Allergan Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Notes payable | 72,100) | 55,600) | 48,800) | 83,900) | 28,100) | |
| Convertible notes | —) | —) | —) | —) | 642,500) | |
| Long-term debt, excluding current maturities | 2,085,300) | 2,098,300) | 1,512,400) | 1,515,400) | 1,534,200) | |
| Total debt | 2,157,400) | 2,153,900) | 1,561,200) | 1,599,300) | 2,204,800) | |
| Total Allergan, Inc. stockholders’ equity | 7,753,000) | 6,463,200) | 5,837,100) | 5,309,600) | 4,757,700) | |
| Total capital | 9,910,400) | 8,617,100) | 7,398,300) | 6,908,900) | 6,962,500) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.22 | 0.25 | 0.21 | 0.23 | 0.32 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Debt to capital = Total debt ÷ Total capital
= 2,157,400 ÷ 9,910,400 = 0.22
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. | Allergan Inc. debt to capital ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 not reaching 2012 level. |
Debt to Assets
Allergan Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Notes payable | 72,100) | 55,600) | 48,800) | 83,900) | 28,100) | |
| Convertible notes | —) | —) | —) | —) | 642,500) | |
| Long-term debt, excluding current maturities | 2,085,300) | 2,098,300) | 1,512,400) | 1,515,400) | 1,534,200) | |
| Total debt | 2,157,400) | 2,153,900) | 1,561,200) | 1,599,300) | 2,204,800) | |
| Total assets | 12,415,700) | 10,574,300) | 9,179,300) | 8,508,600) | 8,308,100) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.17 | 0.20 | 0.17 | 0.19 | 0.27 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Debt to assets = Total debt ÷ Total assets
= 2,157,400 ÷ 12,415,700 = 0.17
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. | Allergan Inc. debt to assets ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 not reaching 2012 level. |
Financial Leverage
Allergan Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 12,415,700) | 10,574,300) | 9,179,300) | 8,508,600) | 8,308,100) | |
| Total Allergan, Inc. stockholders’ equity | 7,753,000) | 6,463,200) | 5,837,100) | 5,309,600) | 4,757,700) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.60 | 1.64 | 1.57 | 1.60 | 1.75 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Financial leverage = Total assets ÷ Total Allergan, Inc. stockholders’ equity
= 12,415,700 ÷ 7,753,000 = 1.60
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. | Allergan Inc. financial leverage ratio increased from 2012 to 2013 but then slightly decreased from 2013 to 2014 not reaching 2012 level. |
Interest Coverage
Allergan Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net earnings attributable to Allergan, Inc. | 1,524,200) | 985,100) | 1,098,800) | 934,500) | 600) | |
| Add: Net income attributable to noncontrolling interest | 4,600) | 3,600) | 3,700) | 3,600) | 4,300) | |
| Less: Discontinued operations | (3,800) | (283,800) | —) | —) | —) | |
| Add: Income tax expense | 456,700) | 458,300) | 430,800) | 361,600) | 165,900) | |
| Add: Interest expense | 69,400) | 75,000) | 63,600) | 71,800) | 78,700) | |
| Earnings before interest and tax (EBIT) | 2,058,700) | 1,805,800) | 1,596,900) | 1,371,500) | 249,500) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 29.66 | 24.08 | 25.11 | 19.10 | 3.17 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,058,700 ÷ 69,400 = 29.66
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. | Allergan Inc. interest coverage ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Fixed Charge Coverage
Allergan Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net earnings attributable to Allergan, Inc. | 1,524,200) | 985,100) | 1,098,800) | 934,500) | 600) | |
| Add: Net income attributable to noncontrolling interest | 4,600) | 3,600) | 3,700) | 3,600) | 4,300) | |
| Less: Discontinued operations | (3,800) | (283,800) | —) | —) | —) | |
| Add: Income tax expense | 456,700) | 458,300) | 430,800) | 361,600) | 165,900) | |
| Add: Interest expense | 69,400) | 75,000) | 63,600) | 71,800) | 78,700) | |
| Earnings before interest and tax (EBIT) | 2,058,700) | 1,805,800) | 1,596,900) | 1,371,500) | 249,500) | |
| Add: Rental expense | 73,400) | 79,000) | 67,000) | 58,100) | 53,500) | |
| Earnings before fixed charges and tax | 2,132,100) | 1,884,800) | 1,663,900) | 1,429,600) | 303,000) | |
| Interest expense | 69,400) | 75,000) | 63,600) | 71,800) | 78,700) | |
| Rental expense | 73,400) | 79,000) | 67,000) | 58,100) | 53,500) | |
| Fixed charges | 142,800) | 154,000) | 130,600) | 129,900) | 132,200) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 14.93 | 12.24 | 12.74 | 11.01 | 2.29 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,132,100 ÷ 142,800 = 14.93
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. | Allergan Inc. fixed charge coverage ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |