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)
Debt Ratios
Coverage Ratios
Boston Scientific Corp., solvency ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The solvency profile demonstrates a consistent trend of deleveraging between 2018 and 2022. There is a systematic reduction in debt relative to equity, total capital, and total assets, indicating a strengthening of the balance sheet and a strategic shift toward a more conservative financial structure.
- Debt and Capitalization Trends
- A steady decline is observed in the Debt to Equity ratio, which fell from 0.81 in 2018 to 0.51 in 2022. This downward trajectory is mirrored in the Debt to Capital ratio, which decreased from 0.45 to 0.34. When operating lease liabilities are included, the ratios remain marginally higher but follow the same consistent downward path, confirming that the improvement in solvency is not merely a result of lease accounting but a fundamental reduction in leverage.
- Asset and Leverage Analysis
- The Debt to Assets ratio decreased from 0.34 to 0.28 over the analyzed period, signifying a lower reliance on debt to finance the asset base. Furthermore, financial leverage declined from 2.41 to 1.85, suggesting a reduction in the use of borrowed funds to amplify equity returns and a corresponding decrease in financial risk.
- Coverage Ratio Volatility
- The interest and fixed charge coverage ratios exhibited significant volatility, diverging from the steady trends of the leverage ratios. Both metrics declined sharply from 2018, reaching a critical low in 2020, where the interest coverage ratio dropped to 0.78 and the fixed charge coverage ratio to 0.76. This indicates a period where earnings were insufficient to cover fixed financial obligations. A recovery was observed in 2021 and 2022, with the interest coverage ratio rebounding to 3.43, although these levels remain below the 2018 baseline of 6.90.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Debt to Equity
Boston Scientific Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt obligations | 20) | 261) | 13) | 1,416) | 2,253) | |
| Long-term debt | 8,915) | 8,804) | 9,130) | 8,592) | 4,803) | |
| Total debt | 8,935) | 9,065) | 9,143) | 10,008) | 7,056) | |
| Stockholders’ equity | 17,573) | 16,622) | 15,326) | 13,877) | 8,726) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.51 | 0.55 | 0.60 | 0.72 | 0.81 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | 0.46 | 0.50 | — | — | — | |
| Elevance Health Inc. | 0.66 | 0.64 | — | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | — | — | — | |
| Medtronic PLC | 0.46 | 0.51 | — | — | — | |
| UnitedHealth Group Inc. | 0.74 | 0.64 | — | — | — | |
| Debt to Equity, Sector | ||||||
| Health Care Equipment & Services | 0.57 | 0.55 | — | — | — | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.72 | 0.80 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 8,935 ÷ 17,573 = 0.51
2 Click competitor name to see calculations.
An analysis of the solvency metrics from 2018 to 2022 reveals a consistent strengthening of the financial position, characterized by a systematic reduction in leverage and a substantial expansion of the equity base.
- Total Debt Trends
- Total debt experienced a significant increase between 2018 and 2019, rising from 7,056 million US$ to 10,008 million US$. Following this peak, a steady downward trajectory was observed, with debt decreasing to 8,935 million US$ by the end of 2022, indicating a period of gradual deleveraging.
- Stockholders' Equity Growth
- Stockholders' equity demonstrated uninterrupted growth throughout the period. Starting at 8,726 million US$ in 2018, the equity base expanded to 17,573 million US$ by 2022. This continuous upward trend represents a doubling of the equity position over five years, significantly enhancing the company's internal funding capacity.
- Debt to Equity Ratio Performance
- The debt to equity ratio exhibits a consistent downward trend, declining from 0.81 in 2018 to 0.51 in 2022. This progression signifies a decreasing reliance on debt financing relative to equity, reflecting a more conservative capital structure and an overall improvement in long-term solvency.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Debt to Equity (including Operating Lease Liability)
Boston Scientific Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt obligations | 20) | 261) | 13) | 1,416) | 2,253) | |
| Long-term debt | 8,915) | 8,804) | 9,130) | 8,592) | 4,803) | |
| Total debt | 8,935) | 9,065) | 9,143) | 10,008) | 7,056) | |
| Current operating lease liabilities (in Other current liabilities) | 61) | 71) | 70) | 67) | —) | |
| Long-term operating lease liabilities | 347) | 389) | 401) | 276) | —) | |
| Total debt (including operating lease liability) | 9,343) | 9,525) | 9,614) | 10,351) | 7,056) | |
| Stockholders’ equity | 17,573) | 16,622) | 15,326) | 13,877) | 8,726) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.53 | 0.57 | 0.63 | 0.75 | 0.81 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.49 | 0.54 | — | — | — | |
| Elevance Health Inc. | 0.69 | 0.67 | — | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | — | — | — | |
| Medtronic PLC | 0.48 | 0.53 | — | — | — | |
| UnitedHealth Group Inc. | 0.80 | 0.70 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.61 | 0.58 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.76 | 0.83 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 9,343 ÷ 17,573 = 0.53
2 Click competitor name to see calculations.
The solvency profile of the organization demonstrates a consistent strengthening over the five-year period from 2018 to 2022. This trend is characterized by a steady reduction in financial leverage, as indicated by the continuous decline in the debt-to-equity ratio, which reflects a more conservative capital structure and an increased reliance on equity over borrowed funds.
- Total Debt Dynamics
- A significant increase in total debt, including operating lease liabilities, was observed between 2018 and 2019, rising from US$ 7,056 million to US$ 10,351 million. Following this peak, a gradual downward trend occurred, with total debt decreasing to US$ 9,343 million by December 31, 2022.
- Stockholders' Equity Expansion
- Stockholders' equity exhibited uninterrupted growth throughout the analyzed period. The equity base expanded from US$ 8,726 million in 2018 to US$ 17,573 million in 2022, effectively doubling the total equity held by the company and providing a larger cushion against liabilities.
- Debt to Equity Ratio Trajectory
- The debt-to-equity ratio followed a consistent downward trajectory, falling from 0.81 in 2018 to 0.53 in 2022. This decline was driven by the simultaneous growth of equity and the stabilization of debt levels after 2019, resulting in a strengthened solvency position and reduced long-term financial risk.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Debt to Capital
Boston Scientific Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt obligations | 20) | 261) | 13) | 1,416) | 2,253) | |
| Long-term debt | 8,915) | 8,804) | 9,130) | 8,592) | 4,803) | |
| Total debt | 8,935) | 9,065) | 9,143) | 10,008) | 7,056) | |
| Stockholders’ equity | 17,573) | 16,622) | 15,326) | 13,877) | 8,726) | |
| Total capital | 26,508) | 25,687) | 24,469) | 23,885) | 15,782) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.34 | 0.35 | 0.37 | 0.42 | 0.45 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | 0.31 | 0.34 | — | — | — | |
| Elevance Health Inc. | 0.40 | 0.39 | — | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | — | — | — | |
| Medtronic PLC | 0.31 | 0.34 | — | — | — | |
| UnitedHealth Group Inc. | 0.43 | 0.39 | — | — | — | |
| Debt to Capital, Sector | ||||||
| Health Care Equipment & Services | 0.36 | 0.35 | — | — | — | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.42 | 0.44 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 8,935 ÷ 26,508 = 0.34
2 Click competitor name to see calculations.
The financial trajectory between 2018 and 2022 indicates a consistent improvement in solvency and a strategic reduction in financial leverage. Although total debt experienced a significant increase in 2019, the subsequent years demonstrate a steady deleveraging process coupled with a consistent expansion of the total capital base.
- Total Debt Trends
- Total debt rose sharply from 7,056 million US dollars in 2018 to a peak of 10,008 million US dollars in 2019. Following this peak, a sustained downward trend is observed, with debt levels decreasing annually to reach 8,935 million US dollars by the end of 2022.
- Total Capital Expansion
- Total capital exhibited substantial growth over the five-year period. A primary surge occurred between 2018 and 2019, increasing from 15,782 million US dollars to 23,885 million US dollars. This growth continued incrementally each year, concluding at 26,508 million US dollars in 2022, suggesting a strong increase in the company's overall funding base.
- Debt to Capital Ratio Analysis
- The debt to capital ratio demonstrates a persistent decline, moving from 0.45 in 2018 to 0.34 in 2022. This continuous reduction reflects a shift in the capital structure, where the proportion of debt relative to total capital has diminished. The transition from a ratio of 0.45 to 0.34 indicates a reduced reliance on borrowed funds and an enhanced solvency profile.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Debt to Capital (including Operating Lease Liability)
Boston Scientific Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt obligations | 20) | 261) | 13) | 1,416) | 2,253) | |
| Long-term debt | 8,915) | 8,804) | 9,130) | 8,592) | 4,803) | |
| Total debt | 8,935) | 9,065) | 9,143) | 10,008) | 7,056) | |
| Current operating lease liabilities (in Other current liabilities) | 61) | 71) | 70) | 67) | —) | |
| Long-term operating lease liabilities | 347) | 389) | 401) | 276) | —) | |
| Total debt (including operating lease liability) | 9,343) | 9,525) | 9,614) | 10,351) | 7,056) | |
| Stockholders’ equity | 17,573) | 16,622) | 15,326) | 13,877) | 8,726) | |
| Total capital (including operating lease liability) | 26,916) | 26,147) | 24,940) | 24,228) | 15,782) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.35 | 0.36 | 0.39 | 0.43 | 0.45 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.33 | 0.35 | — | — | — | |
| Elevance Health Inc. | 0.41 | 0.40 | — | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | — | — | — | |
| Medtronic PLC | 0.32 | 0.35 | — | — | — | |
| UnitedHealth Group Inc. | 0.45 | 0.41 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.38 | 0.37 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.43 | 0.45 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 9,343 ÷ 26,916 = 0.35
2 Click competitor name to see calculations.
A consistent improvement in the solvency profile is observed between 2018 and 2022. While total debt experienced a significant increase in 2019, the subsequent growth in the total capital base and a gradual reduction in debt obligations have resulted in a sustained decline in the debt-to-capital ratio.
- Debt Dynamics
- Total debt, including operating lease liabilities, rose sharply from 7,056 million US$ in 2018 to a peak of 10,351 million US$ in 2019. Following this increase, a gradual downward trend was established, with debt levels decreasing steadily over the next three years to reach 9,343 million US$ by December 31, 2022.
- Capitalization Growth
- Total capital expanded significantly throughout the analyzed period. A substantial increase occurred between 2018 and 2019, where capital rose from 15,782 million US$ to 24,228 million US$. This growth continued at a moderate pace through 2022, ending at 26,916 million US$, suggesting a strengthening of the overall financial base.
- Debt to Capital Ratio Analysis
- The debt to capital ratio exhibits a continuous downward trajectory, moving from 0.45 in 2018 to 0.35 in 2022. This decline indicates that the growth in total capital has outpaced the growth in debt, reflecting a reduction in financial leverage and an improved solvency position over the five-year horizon.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Debt to Assets
Boston Scientific Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt obligations | 20) | 261) | 13) | 1,416) | 2,253) | |
| Long-term debt | 8,915) | 8,804) | 9,130) | 8,592) | 4,803) | |
| Total debt | 8,935) | 9,065) | 9,143) | 10,008) | 7,056) | |
| Total assets | 32,469) | 32,229) | 30,777) | 30,565) | 20,999) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.28 | 0.28 | 0.30 | 0.33 | 0.34 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | 0.23 | 0.24 | — | — | — | |
| Elevance Health Inc. | 0.23 | 0.24 | — | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | — | — | — | |
| Medtronic PLC | 0.27 | 0.28 | — | — | — | |
| UnitedHealth Group Inc. | 0.23 | 0.22 | — | — | — | |
| Debt to Assets, Sector | ||||||
| Health Care Equipment & Services | 0.23 | 0.23 | — | — | — | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.28 | 0.30 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 8,935 ÷ 32,469 = 0.28
2 Click competitor name to see calculations.
The solvency profile from 2018 to 2022 demonstrates a consistent improvement in the proportion of assets financed through debt. While a significant increase in both total debt and total assets occurred in 2019, the subsequent period is characterized by a gradual deleveraging process and steady asset expansion, leading to a strengthened financial position.
- Total Debt Trends
- Total debt experienced a sharp increase between 2018 and 2019, rising from 7,056 million USD to 10,008 million USD. Following this peak, a sustained downward trend is observed, with debt levels decreasing annually to reach 8,935 million USD by December 31, 2022.
- Total Asset Growth
- A substantial expansion of the asset base occurred in 2019, with total assets increasing from 20,999 million USD to 30,565 million USD. This growth continued at a more moderate pace over the following three years, culminating in a total asset value of 32,469 million USD by the end of 2022.
- Debt to Assets Ratio Analysis
- The debt to assets ratio shows a steady decline from 0.34 in 2018 to 0.28 in 2022. This downward trajectory indicates that the company has successfully reduced its reliance on borrowed funds relative to its total resources. The stability of the ratio at 0.28 between 2021 and 2022 suggests a plateau in the deleveraging trend, maintaining a lower risk profile compared to the 2018 baseline.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Debt to Assets (including Operating Lease Liability)
Boston Scientific Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt obligations | 20) | 261) | 13) | 1,416) | 2,253) | |
| Long-term debt | 8,915) | 8,804) | 9,130) | 8,592) | 4,803) | |
| Total debt | 8,935) | 9,065) | 9,143) | 10,008) | 7,056) | |
| Current operating lease liabilities (in Other current liabilities) | 61) | 71) | 70) | 67) | —) | |
| Long-term operating lease liabilities | 347) | 389) | 401) | 276) | —) | |
| Total debt (including operating lease liability) | 9,343) | 9,525) | 9,614) | 10,351) | 7,056) | |
| Total assets | 32,469) | 32,229) | 30,777) | 30,565) | 20,999) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.29 | 0.30 | 0.31 | 0.34 | 0.34 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.24 | 0.26 | — | — | — | |
| Elevance Health Inc. | 0.24 | 0.25 | — | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | — | — | — | |
| Medtronic PLC | 0.27 | 0.29 | — | — | — | |
| UnitedHealth Group Inc. | 0.25 | 0.24 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.25 | 0.25 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.29 | 0.31 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 9,343 ÷ 32,469 = 0.29
2 Click competitor name to see calculations.
The solvency profile of the organization demonstrates a trend of strengthening over the five-year period ending December 31, 2022. While there was a significant expansion of the balance sheet in 2019, the subsequent years are characterized by a consistent reduction in the proportion of assets financed through debt.
- Total Debt and Asset Expansion
- A substantial increase in both total debt and total assets occurred between 2018 and 2019, with debt rising from 7,056 million US$ to 10,351 million US$ and assets increasing from 20,999 million US$ to 30,565 million US$. This simultaneous growth resulted in the debt-to-assets ratio remaining constant at 0.34 during this interval.
- Leverage Reduction Trend
- From 2020 through 2022, a gradual decline in total debt was observed, decreasing from 9,614 million US$ to 9,343 million US$. During the same period, total assets continued to grow, reaching 32,469 million US$ by the end of 2022.
- Debt to Assets Ratio Analysis
- The debt-to-assets ratio exhibited a steady downward trajectory following 2019, moving from 0.34 to 0.29 by December 31, 2022. This trend indicates a reduction in financial leverage and an increase in the proportion of assets funded by equity or other non-debt liabilities, thereby enhancing the overall solvency position.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Financial Leverage
Boston Scientific Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 32,469) | 32,229) | 30,777) | 30,565) | 20,999) | |
| Stockholders’ equity | 17,573) | 16,622) | 15,326) | 13,877) | 8,726) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.85 | 1.94 | 2.01 | 2.20 | 2.41 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | 2.03 | 2.10 | — | — | — | |
| Elevance Health Inc. | 2.83 | 2.70 | — | — | — | |
| Intuitive Surgical Inc. | 1.17 | 1.14 | — | — | — | |
| Medtronic PLC | 1.73 | 1.81 | — | — | — | |
| UnitedHealth Group Inc. | 3.16 | 2.96 | — | — | — | |
| Financial Leverage, Sector | ||||||
| Health Care Equipment & Services | 2.46 | 2.37 | — | — | — | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.57 | 2.69 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 32,469 ÷ 17,573 = 1.85
2 Click competitor name to see calculations.
A consistent strengthening of the solvency position is evident between 2018 and 2022, characterized by a steady reduction in financial leverage and a substantial increase in the equity base.
- Financial Leverage Trend
- A continuous downward trajectory is observed in the financial leverage ratio, which declined from 2.41 in 2018 to 1.85 by the end of 2022. This persistent decrease indicates a strategic reduction in the reliance on debt relative to equity to finance the asset base, thereby lowering the overall financial risk profile.
- Equity Growth and Asset Expansion
- Stockholders' equity demonstrated robust and uninterrupted growth, increasing from 8,726 million US$ in 2018 to 17,573 million US$ in 2022. Although total assets experienced a significant surge between 2018 and 2019—rising from 20,999 million US$ to 30,565 million US$—the growth in assets thereafter remained moderate, while equity continued to climb steadily.
- Solvency Implications
- The improvement in the financial leverage ratio is primarily driven by the fact that stockholders' equity grew at a faster proportional rate than total assets over the analyzed period. This shift suggests an improved capacity to meet long-term obligations and a more conservative capital structure by the end of 2022.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Interest Coverage
Boston Scientific Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 698) | 1,041) | (82) | 4,700) | 1,671) | |
| Add: Income tax expense | 443) | 35) | 3) | (4,013) | (249) | |
| Add: Interest expense | 470) | 341) | 361) | 473) | 241) | |
| Earnings before interest and tax (EBIT) | 1,611) | 1,417) | 282) | 1,160) | 1,663) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 3.43 | 4.16 | 0.78 | 2.45 | 6.90 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | 15.89 | 16.41 | — | — | — | |
| Elevance Health Inc. | 10.13 | 10.93 | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | 10.98 | 5.21 | — | — | — | |
| UnitedHealth Group Inc. | 13.59 | 14.44 | — | — | — | |
| Interest Coverage, Sector | ||||||
| Health Care Equipment & Services | 13.22 | 12.30 | — | — | — | |
| Interest Coverage, Industry | ||||||
| Health Care | 14.75 | 14.14 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,611 ÷ 470 = 3.43
2 Click competitor name to see calculations.
The solvency profile from 2018 to 2022 exhibits a marked U-shaped trend in interest coverage, reflecting significant operational volatility and fluctuations in debt servicing costs.
- Earnings Before Interest and Tax (EBIT) Trends
- A sharp decline in operational earnings is observed starting in 2019, culminating in a low of 282 million US dollars in 2020. This represents a substantial contraction from the 1,663 million US dollars reported in 2018. However, a strong recovery followed, with earnings rebounding to 1,417 million US dollars in 2021 and reaching 1,611 million US dollars by 2022, nearly returning to 2018 levels.
- Interest Expense Fluctuations
- Interest costs demonstrated significant instability over the period. Expenses nearly doubled from 241 million US dollars in 2018 to 473 million US dollars in 2019. After a period of relative moderation in 2020 and 2021, expenses rose again to 470 million US dollars in 2022, indicating a renewed increase in the cost of debt servicing.
- Interest Coverage Ratio Analysis
- The interest coverage ratio experienced a precipitous drop from 6.90 in 2018 to a critical low of 0.78 in 2020. This sub-1.0 ratio indicates that during 2020, operational earnings were insufficient to cover interest obligations. A significant correction occurred in 2021, with the ratio ascending to 4.16. By 2022, the ratio moderated to 3.43, driven by the simultaneous increase in interest expenses despite continued growth in EBIT.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Fixed Charge Coverage
Boston Scientific Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| U.S. federal statutory income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | |
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 698) | 1,041) | (82) | 4,700) | 1,671) | |
| Add: Income tax expense | 443) | 35) | 3) | (4,013) | (249) | |
| Add: Interest expense | 470) | 341) | 361) | 473) | 241) | |
| Earnings before interest and tax (EBIT) | 1,611) | 1,417) | 282) | 1,160) | 1,663) | |
| Add: Operating lease cost | 91) | 90) | 92) | 80) | 92) | |
| Earnings before fixed charges and tax | 1,702) | 1,507) | 374) | 1,240) | 1,755) | |
| Interest expense | 470) | 341) | 361) | 473) | 241) | |
| Operating lease cost | 91) | 90) | 92) | 80) | 92) | |
| Preferred stock dividends | 56) | 56) | 33) | —) | —) | |
| Preferred stock dividends, tax adjustment1 | 15) | 15) | 9) | —) | —) | |
| Preferred stock dividends, after tax adjustment | 71) | 71) | 42) | —) | —) | |
| Fixed charges | 632) | 502) | 495) | 553) | 333) | |
| Solvency Ratio | ||||||
| Fixed charge coverage2 | 2.69 | 3.00 | 0.76 | 2.24 | 5.27 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors3 | ||||||
| Abbott Laboratories | 10.10 | 10.21 | — | — | — | |
| Elevance Health Inc. | 8.82 | 8.48 | — | — | — | |
| Intuitive Surgical Inc. | 63.52 | 93.66 | — | — | — | |
| Medtronic PLC | 7.79 | 4.31 | — | — | — | |
| UnitedHealth Group Inc. | 8.77 | 8.80 | — | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Health Care Equipment & Services | 9.07 | 8.36 | — | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 10.95 | 10.48 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Preferred stock dividends, tax adjustment = (Preferred stock dividends × U.S. federal statutory income tax rate) ÷ (1 − U.S. federal statutory income tax rate)
= (56 × 21.00%) ÷ (1 − 21.00%) = 15
2 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,702 ÷ 632 = 2.69
3 Click competitor name to see calculations.
An analysis of the fixed charge coverage from 2018 to 2022 reveals a period of significant volatility characterized by a sharp contraction in earnings and a subsequent recovery. The solvency position experienced a critical decline in 2020, followed by a return to sustainable coverage levels in the subsequent two years.
- Earnings Before Fixed Charges and Tax Trend
- Earnings exhibited extreme fluctuations, starting at 1,755 million USD in 2018 and declining precipitously to a low of 374 million USD in 2020. A strong recovery followed, with earnings rising to 1,507 million USD in 2021 and reaching 1,702 million USD by the end of 2022, nearly returning to 2018 levels.
- Fixed Charges Evolution
- Fixed charges showed a general upward trajectory over the five-year period. Obligations increased from 333 million USD in 2018 to 632 million USD in 2022. The most significant increase occurred between 2018 and 2019, where charges rose from 333 million USD to 553 million USD, remaining relatively stable until another increase in 2022.
- Fixed Charge Coverage Ratio Analysis
- The coverage ratio mirrored the volatility of earnings. A strong initial position of 5.27 in 2018 deteriorated to 2.24 in 2019 and fell to 0.76 in 2020. The 2020 value represents a period of insolvency regarding fixed charges, as earnings were insufficient to cover these obligations. The ratio rebounded to 3.00 in 2021 and moderated to 2.69 in 2022, indicating a restored capacity to service fixed debts, although at a lower efficiency level than observed in 2018.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?