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)
Apache Corp., solvency ratios
Based on: 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), 10-K (reporting date: 2011-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Apache Corp. debt to equity ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Apache Corp. debt to capital ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Apache Corp. debt to assets ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Apache Corp. financial leverage ratio increased from 2013 to 2014 and from 2014 to 2015. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Apache Corp. interest coverage ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Apache Corp. fixed charge coverage ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Debt to Equity
Apache Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt | 1) | —) | 53) | 990) | 431) | |
| Long-term debt, excluding current maturities | 8,777) | 11,245) | 9,672) | 11,355) | 6,785) | |
| Total debt | 8,778) | 11,245) | 9,725) | 12,345) | 7,216) | |
| Total Apache shareholders’ equity | 2,566) | 25,937) | 33,396) | 31,331) | 28,993) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 3.42 | 0.43 | 0.29 | 0.39 | 0.25 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Debt to equity = Total debt ÷ Total Apache shareholders’ equity
= 8,778 ÷ 2,566 = 3.42
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. | Apache Corp. debt to equity ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Debt to Capital
Apache Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt | 1) | —) | 53) | 990) | 431) | |
| Long-term debt, excluding current maturities | 8,777) | 11,245) | 9,672) | 11,355) | 6,785) | |
| Total debt | 8,778) | 11,245) | 9,725) | 12,345) | 7,216) | |
| Total Apache shareholders’ equity | 2,566) | 25,937) | 33,396) | 31,331) | 28,993) | |
| Total capital | 11,344) | 37,182) | 43,121) | 43,676) | 36,209) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.77 | 0.30 | 0.23 | 0.28 | 0.20 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Debt to capital = Total debt ÷ Total capital
= 8,778 ÷ 11,344 = 0.77
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. | Apache Corp. debt to capital ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Debt to Assets
Apache Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt | 1) | —) | 53) | 990) | 431) | |
| Long-term debt, excluding current maturities | 8,777) | 11,245) | 9,672) | 11,355) | 6,785) | |
| Total debt | 8,778) | 11,245) | 9,725) | 12,345) | 7,216) | |
| Total assets | 18,842) | 55,952) | 61,637) | 60,737) | 52,051) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.47 | 0.20 | 0.16 | 0.20 | 0.14 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Debt to assets = Total debt ÷ Total assets
= 8,778 ÷ 18,842 = 0.47
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. | Apache Corp. debt to assets ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Financial Leverage
Apache Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 18,842) | 55,952) | 61,637) | 60,737) | 52,051) | |
| Total Apache shareholders’ equity | 2,566) | 25,937) | 33,396) | 31,331) | 28,993) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 7.34 | 2.16 | 1.85 | 1.94 | 1.80 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Financial leverage = Total assets ÷ Total Apache shareholders’ equity
= 18,842 ÷ 2,566 = 7.34
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. | Apache Corp. financial leverage ratio increased from 2013 to 2014 and from 2014 to 2015. |
Interest Coverage
Apache Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Apache shareholders | (23,119) | (5,403) | 2,232) | 2,001) | 4,584) | |
| Add: Net income attributable to noncontrolling interest | (409) | 343) | 56) | —) | —) | |
| Less: Net loss from discontinued operations, net of tax | (771) | (517) | —) | —) | —) | |
| Add: Income tax expense | (5,469) | 1,637) | 1,928) | 2,876) | 3,509) | |
| Add: Interest expense, net of capitalized interest | 259) | 136) | 197) | 175) | 170) | |
| Earnings before interest and tax (EBIT) | (27,967) | (2,770) | 4,413) | 5,052) | 8,263) | |
| Solvency Ratio | ||||||
| Interest coverage1 | -107.98 | -20.37 | 22.40 | 28.87 | 48.61 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Interest coverage = EBIT ÷ Interest expense
= -27,967 ÷ 259 = -107.98
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. | Apache Corp. interest coverage ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Fixed Charge Coverage
Apache Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Apache shareholders | (23,119) | (5,403) | 2,232) | 2,001) | 4,584) | |
| Add: Net income attributable to noncontrolling interest | (409) | 343) | 56) | —) | —) | |
| Less: Net loss from discontinued operations, net of tax | (771) | (517) | —) | —) | —) | |
| Add: Income tax expense | (5,469) | 1,637) | 1,928) | 2,876) | 3,509) | |
| Add: Interest expense, net of capitalized interest | 259) | 136) | 197) | 175) | 170) | |
| Earnings before interest and tax (EBIT) | (27,967) | (2,770) | 4,413) | 5,052) | 8,263) | |
| Add: Net rental expense | 57) | 58) | 81) | 76) | 64) | |
| Earnings before fixed charges and tax | (27,910) | (2,712) | 4,494) | 5,128) | 8,327) | |
| Interest expense, net of capitalized interest | 259) | 136) | 197) | 175) | 170) | |
| Net rental expense | 57) | 58) | 81) | 76) | 64) | |
| Fixed charges | 316) | 194) | 278) | 251) | 234) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | -88.32 | -13.98 | 16.17 | 20.43 | 35.59 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= -27,910 ÷ 316 = -88.32
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. | Apache Corp. fixed charge coverage ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |