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)
Anadarko Petroleum Corp., solvency ratios
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Anadarko Petroleum Corp. debt to equity ratio deteriorated from 2014 to 2015 and from 2015 to 2016. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Anadarko Petroleum Corp. debt to capital ratio deteriorated from 2014 to 2015 and from 2015 to 2016. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Anadarko Petroleum Corp. debt to assets ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Anadarko Petroleum Corp. financial leverage ratio increased from 2014 to 2015 and from 2015 to 2016. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Anadarko Petroleum Corp. interest coverage ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Anadarko Petroleum Corp. fixed charge coverage ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level. |
Debt to Equity
Anadarko Petroleum Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 42) | 33) | —) | 500) | —) | |
| Long-term debt, excluding current portion | 15,281) | 15,718) | 15,092) | 13,065) | 13,269) | |
| Total debt | 15,323) | 15,751) | 15,092) | 13,565) | 13,269) | |
| Stockholders’ equity | 12,212) | 12,819) | 19,725) | 21,857) | 20,629) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.25 | 1.23 | 0.77 | 0.62 | 0.64 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 15,323 ÷ 12,212 = 1.25
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. | Anadarko Petroleum Corp. debt to equity ratio deteriorated from 2014 to 2015 and from 2015 to 2016. |
Debt to Capital
Anadarko Petroleum Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 42) | 33) | —) | 500) | —) | |
| Long-term debt, excluding current portion | 15,281) | 15,718) | 15,092) | 13,065) | 13,269) | |
| Total debt | 15,323) | 15,751) | 15,092) | 13,565) | 13,269) | |
| Stockholders’ equity | 12,212) | 12,819) | 19,725) | 21,857) | 20,629) | |
| Total capital | 27,535) | 28,570) | 34,817) | 35,422) | 33,898) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.56 | 0.55 | 0.43 | 0.38 | 0.39 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Debt to capital = Total debt ÷ Total capital
= 15,323 ÷ 27,535 = 0.56
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. | Anadarko Petroleum Corp. debt to capital ratio deteriorated from 2014 to 2015 and from 2015 to 2016. |
Debt to Assets
Anadarko Petroleum Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 42) | 33) | —) | 500) | —) | |
| Long-term debt, excluding current portion | 15,281) | 15,718) | 15,092) | 13,065) | 13,269) | |
| Total debt | 15,323) | 15,751) | 15,092) | 13,565) | 13,269) | |
| Total assets | 45,564) | 46,414) | 61,689) | 55,781) | 52,589) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.34 | 0.34 | 0.24 | 0.24 | 0.25 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Debt to assets = Total debt ÷ Total assets
= 15,323 ÷ 45,564 = 0.34
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. | Anadarko Petroleum Corp. debt to assets ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
Financial Leverage
Anadarko Petroleum Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 45,564) | 46,414) | 61,689) | 55,781) | 52,589) | |
| Stockholders’ equity | 12,212) | 12,819) | 19,725) | 21,857) | 20,629) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.73 | 3.62 | 3.13 | 2.55 | 2.55 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 45,564 ÷ 12,212 = 3.73
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. | Anadarko Petroleum Corp. financial leverage ratio increased from 2014 to 2015 and from 2015 to 2016. |
Interest Coverage
Anadarko Petroleum Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to common stockholders | (3,071) | (6,692) | (1,750) | 801) | 2,391) | |
| Add: Net income attributable to noncontrolling interest | 263) | (120) | 187) | 140) | 54) | |
| Add: Income tax expense | (1,021) | (2,877) | 1,617) | 1,165) | 1,120) | |
| Add: Interest expense | 890) | 825) | 772) | 686) | 742) | |
| Earnings before interest and tax (EBIT) | (2,939) | (8,864) | 826) | 2,792) | 4,307) | |
| Solvency Ratio | ||||||
| Interest coverage1 | -3.30 | -10.74 | 1.07 | 4.07 | 5.80 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Interest coverage = EBIT ÷ Interest expense
= -2,939 ÷ 890 = -3.30
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. | Anadarko Petroleum Corp. interest coverage ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level. |
Fixed Charge Coverage
Anadarko Petroleum Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to common stockholders | (3,071) | (6,692) | (1,750) | 801) | 2,391) | |
| Add: Net income attributable to noncontrolling interest | 263) | (120) | 187) | 140) | 54) | |
| Add: Income tax expense | (1,021) | (2,877) | 1,617) | 1,165) | 1,120) | |
| Add: Interest expense | 890) | 825) | 772) | 686) | 742) | |
| Earnings before interest and tax (EBIT) | (2,939) | (8,864) | 826) | 2,792) | 4,307) | |
| Add: Rent expense, net of sublease income and amounts capitalized | 73) | 77) | 85) | 119) | 136) | |
| Earnings before fixed charges and tax | (2,866) | (8,787) | 911) | 2,911) | 4,443) | |
| Interest expense | 890) | 825) | 772) | 686) | 742) | |
| Rent expense, net of sublease income and amounts capitalized | 73) | 77) | 85) | 119) | 136) | |
| Fixed charges | 963) | 902) | 857) | 805) | 878) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | -2.98 | -9.74 | 1.06 | 3.62 | 5.06 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= -2,866 ÷ 963 = -2.98
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. | Anadarko Petroleum Corp. fixed charge coverage ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level. |