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)
AstraZeneca PLC, solvency ratios
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (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. | AstraZeneca PLC debt to equity ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | AstraZeneca PLC debt to capital ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | AstraZeneca PLC debt to assets ratio improved from 2012 to 2013 and from 2013 to 2014. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | AstraZeneca PLC financial leverage ratio increased from 2012 to 2013 and from 2013 to 2014. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | AstraZeneca PLC interest coverage ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
Debt to Equity
AstraZeneca PLC, 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 millions) | ||||||
| Current interest-bearing loans and borrowings | 2,446) | 1,788) | 901) | 1,990) | 125) | |
| Non-current interest-bearing loans and borrowings | 8,397) | 8,588) | 9,409) | 7,338) | 9,097) | |
| Total debt | 10,843) | 10,376) | 10,310) | 9,328) | 9,222) | |
| Capital and reserves attributable to equity holders of the Company | 19,627) | 23,224) | 23,737) | 23,246) | 23,213) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.55 | 0.45 | 0.43 | 0.40 | 0.40 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Debt to equity = Total debt ÷ Capital and reserves attributable to equity holders of the Company
= 10,843 ÷ 19,627 = 0.55
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. | AstraZeneca PLC debt to equity ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
Debt to Capital
AstraZeneca PLC, 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 millions) | ||||||
| Current interest-bearing loans and borrowings | 2,446) | 1,788) | 901) | 1,990) | 125) | |
| Non-current interest-bearing loans and borrowings | 8,397) | 8,588) | 9,409) | 7,338) | 9,097) | |
| Total debt | 10,843) | 10,376) | 10,310) | 9,328) | 9,222) | |
| Capital and reserves attributable to equity holders of the Company | 19,627) | 23,224) | 23,737) | 23,246) | 23,213) | |
| Total capital | 30,470) | 33,600) | 34,047) | 32,574) | 32,435) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.36 | 0.31 | 0.30 | 0.29 | 0.28 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Debt to capital = Total debt ÷ Total capital
= 10,843 ÷ 30,470 = 0.36
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. | AstraZeneca PLC debt to capital ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
Debt to Assets
AstraZeneca PLC, 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 millions) | ||||||
| Current interest-bearing loans and borrowings | 2,446) | 1,788) | 901) | 1,990) | 125) | |
| Non-current interest-bearing loans and borrowings | 8,397) | 8,588) | 9,409) | 7,338) | 9,097) | |
| Total debt | 10,843) | 10,376) | 10,310) | 9,328) | 9,222) | |
| Total assets | 58,595) | 55,899) | 53,534) | 52,830) | 56,127) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.19 | 0.19 | 0.19 | 0.18 | 0.16 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Debt to assets = Total debt ÷ Total assets
= 10,843 ÷ 58,595 = 0.19
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. | AstraZeneca PLC debt to assets ratio improved from 2012 to 2013 and from 2013 to 2014. |
Financial Leverage
AstraZeneca PLC, 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 millions) | ||||||
| Total assets | 58,595) | 55,899) | 53,534) | 52,830) | 56,127) | |
| Capital and reserves attributable to equity holders of the Company | 19,627) | 23,224) | 23,737) | 23,246) | 23,213) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.99 | 2.41 | 2.26 | 2.27 | 2.42 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Financial leverage = Total assets ÷ Capital and reserves attributable to equity holders of the Company
= 58,595 ÷ 19,627 = 2.99
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. | AstraZeneca PLC financial leverage ratio increased from 2012 to 2013 and from 2013 to 2014. |
Interest Coverage
AstraZeneca PLC, 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 millions) | ||||||
| Profit attributable to owners of the Parent | 1,233) | 2,556) | 6,297) | 9,983) | 8,053) | |
| Add: Net income attributable to noncontrolling interest | 2) | 15) | 30) | 33) | 28) | |
| Add: Income tax expense | 11) | 696) | 1,391) | 2,351) | 2,896) | |
| Add: Interest on debt and commercial paper | 383) | 388) | 404) | 404) | 450) | |
| Earnings before interest and tax (EBIT) | 1,629) | 3,655) | 8,122) | 12,771) | 11,427) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 4.25 | 9.42 | 20.10 | 31.61 | 25.39 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,629 ÷ 383 = 4.25
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. | AstraZeneca PLC interest coverage ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |