Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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Solvency Ratios (Summary)
Boston Scientific Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The company's financial leverage exhibited a general downward trend from March 31, 2019, to March 31, 2023, starting at a ratio of 2.58 and decreasing to 1.84. This indicates a gradual reduction in reliance on debt relative to equity over the analyzed periods.
Debt-related ratios, including debt to equity, debt to capital, and debt to assets, demonstrated consistent declines over time, reflecting a strengthening equity base or reduced debt levels. Specifically, the debt to equity ratio decreased from 1 to 0.5, the debt to capital ratio dropped from 0.5 to 0.34, and the debt to assets ratio fell from 0.39 to 0.27. These trends point toward improved solvency and a more conservative capital structure.
The interest coverage ratio revealed significant fluctuations throughout the periods. Initially, it declined sharply from 6.38 to 0.12 between March 31, 2019, and September 30, 2020, suggesting increased difficulty in meeting interest obligations due to lower earnings or higher interest expense. However, post this period, the ratio showed robust recovery, rising back to 6.58 by March 31, 2023, indicating improved earnings capacity or reduced interest expenses, enhancing the company's ability to cover interest costs comfortably.
Overall, the financial data illustrates a progressive deleveraging strategy supported by enhanced interest coverage in recent quarters, signaling an improvement in financial stability and reduced credit risk. These trends underline effective debt management and potentially stronger operational performance contributing to sustained financial health.
Debt Ratios
Coverage Ratios
Debt to Equity
Boston Scientific Corp., debt to equity calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current debt obligations | |||||||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the company’s capital structure over the observed periods.
- Total Debt
- The total debt consistently fluctuates but shows an overall slight decline towards the most recent period. It peaked at 10,887 million US dollars in September 2019, followed by a gradual decrease across subsequent quarters. By March 31, 2023, total debt stands at 9,005 million US dollars, indicating a modest reduction compared to the earlier quarters. The downward trend suggests a focus on debt management and potential deleveraging efforts.
- Stockholders’ Equity
- Stockholders’ equity demonstrates a generally upward trend throughout the periods. Starting around 9,233 million US dollars in March 2019, the equity value increased steadily, with significant growth observed in late 2019. By March 31, 2023, the equity reached 17,850 million US dollars. This growth points to retained earnings accumulation, possible equity infusions, or asset revaluations positively impacting the company’s net worth.
- Debt to Equity Ratio
- The debt to equity ratio exhibits a marked decrease from a level around 1.12 in late 2019 to a considerably lower value near 0.5 in early 2023. This decline indicates a shift towards a stronger equity base relative to debt, reflecting an improvement in financial leverage and potentially lower financial risk. The ratio stabilizes around the 0.5 mark in the final quarters, suggesting a balanced capital structure has been maintained recently.
Overall, the company has shown a trend of reducing debt levels while increasing shareholder equity, resulting in a more conservative debt to equity profile. This might enhance financial stability and flexibility going forward. The data suggests a deliberate strategy focused on strengthening the balance sheet and reducing reliance on debt financing.
Debt to Capital
Boston Scientific Corp., debt to capital calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current debt obligations | |||||||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends regarding the company's debt levels, capital base, and leverage ratio over the five-year period ending in March 2023.
- Total Debt
- Total debt exhibited an initial increase from approximately $9.2 billion at the end of Q1 2019 to a peak near $10.9 billion by Q3 2019. Subsequently, total debt decreased steadily, reaching a low of roughly $8.6 billion in Q3 2022 before rising again slightly to about $9.0 billion by Q1 2023. This pattern suggests a strategic reduction of debt following the 2019 peak with some moderate increases in the most recent quarters.
- Total Capital
- Total capital showed consistent growth over the period, starting at approximately $18.5 billion in Q1 2019 and rising to about $26.9 billion by Q1 2023. The growth was relatively steady with occasional quarterly fluctuations but indicates an overall strengthening of the company's capital base.
- Debt to Capital Ratio
- The debt to capital ratio declined significantly from 0.50 in early 2019 to a range around 0.33-0.36 across 2021 through early 2023. This decline highlights a reduction in the relative proportion of debt within the company’s capital structure, suggesting an improvement in financial leverage and potentially a stronger balance sheet and reduced financial risk over time.
Overall, the financial trends indicate a deliberate effort to manage and reduce leverage while growing total capital. The relatively stable debt to capital ratio in the recent quarters points to a maintained balance between debt and equity financing. These patterns reflect a more conservative financial position with enhanced capacity for sustained growth or resilience against market fluctuations.
Debt to Assets
Boston Scientific Corp., debt to assets calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current debt obligations | |||||||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data over the observed periods reveals notable trends in the leverage and asset base of the company.
- Total Debt
- Total debt initially shows an upward trend from March 2019 to September 2019, increasing from 9,228 million US dollars to 10,887 million US dollars. Subsequently, the total debt decreases gradually with minor fluctuations, reaching a low point around 8,584 million US dollars by September 2022. There is a slight rebound toward the end of the period, with total debt rising to 9,005 million US dollars by March 2023. Overall, total debt demonstrates a peak in late 2019 followed by a general declining trend.
- Total Assets
- Total assets exhibit a consistent upward trajectory throughout the period analyzed. Beginning at 23,802 million US dollars in March 2019, the asset base expands steadily, with only marginal periods of stabilization or small fluctuations. By the end of the timeline, total assets reach 32,892 million US dollars in March 2023, indicating a significant increase in the company’s asset holdings over these four years.
- Debt to Assets Ratio
- The debt to assets ratio starts relatively high at 0.39 in March 2019 and remains around that level until late 2019. From December 2019 onward, there is a clear downward trend in this ratio, declining to around 0.27 by March 2023. This decline reflects that the growth in assets has outpaced the liabilities related to debt, improving the company’s leverage position. The ratio stabilizes somewhat at the lower level toward the end of the period, indicating consistent management of debt relative to assets.
In summary, the company has expanded its asset base steadily while reducing its debt level relative to assets. This combination has led to a marked improvement in leverage metrics, reflecting potentially stronger financial stability and lower relative risk in terms of debt burden over the analyzed periods.
Financial Leverage
Boston Scientific Corp., financial leverage calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several important trends in the company's financial position over the observed period.
- Total Assets
- Total assets demonstrated a general upward trend from March 31, 2019, through March 31, 2023, increasing from approximately $23.8 billion to about $32.9 billion. There was steady growth despite some fluctuations, with total assets peaking around the end of 2019 and showing consistent incremental growth from 2021 onwards. This indicates sustained asset accumulation or appreciation over the four-year period.
- Stockholders’ Equity
- Stockholders’ equity increased from about $9.2 billion in March 2019 to roughly $17.9 billion by March 2023. The data shows a significant rise at the end of 2019, followed by a more moderate yet consistent increase in subsequent quarters. The steady upward trend in equity suggests retained earnings or capital infusion outpaced any losses or distributions, reflecting improving net worth and financial stability.
- Financial Leverage
- The financial leverage ratio, calculated as total assets divided by stockholders’ equity, exhibits a declining trend over the period. Starting from 2.58 in early 2019, leverage dropped to a low point of around 1.81 by late 2022, before slightly increasing to approximately 1.84 by early 2023. This reduction in leverage indicates a gradual decrease in reliance on debt relative to equity, suggesting a stronger equity base and potentially lower financial risk.
In summary, the company’s financial data portray a pattern of asset growth accompanied by increasing equity, leading to a decrease in financial leverage. This combination typically reflects an improving financial strength and balance sheet quality, with enhanced capacity to manage obligations through equity rather than debt.
Interest Coverage
Boston Scientific Corp., interest coverage calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||
| Add: Interest expense | |||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Interest coverage
= (EBITQ1 2023
+ EBITQ4 2022
+ EBITQ3 2022
+ EBITQ2 2022)
÷ (Interest expenseQ1 2023
+ Interest expenseQ4 2022
+ Interest expenseQ3 2022
+ Interest expenseQ2 2022)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the earnings before interest and tax (EBIT), interest expense, and interest coverage over the observed quarterly periods indicates several noteworthy trends and fluctuations.
- Earnings Before Interest and Tax (EBIT)
- The EBIT values demonstrate significant volatility throughout the periods. Initially, EBIT started strong at 566 million USD in the first quarter of 2019, followed by a pronounced decline over the next three quarters, reaching a low of 174 million USD by the end of 2019. The trend continued downward into early 2020, with EBIT turning negative in the second and third quarters of 2020 (-90 million and -141 million USD, respectively), indicating operational challenges during that time frame.
- Subsequently, the EBIT recovered sharply in the last quarter of 2020, returning to positive territory at 403 million USD. From 2021 onwards, EBIT showed a generally stable upward trend, with some fluctuations; it rose to a peak of 569 million USD in the third quarter of 2021, followed by a decrease to 206 million USD in the last quarter of that year. Thereafter, the EBIT values consistently increased through 2022 and into early 2023, culminating at 509 million USD by the first quarter of 2023.
- Interest Expense
- Interest expenses remained relatively stable for the most part, fluctuating between approximately 82 and 109 million USD from 2019 to 2021. Noteworthy exceptions are present in the first quarter of 2022, where interest expense surged to 279 million USD, a significant outlier relative to other periods.
- Following this spike, interest expenses quickly normalized, returning to a consistent range in subsequent quarters of 2022 and early 2023, maintaining levels near 63 to 65 million USD.
- Interest Coverage Ratio
- This ratio, which measures the ability to cover interest expenses with EBIT, exhibits considerable variability in line with the trends in EBIT and interest expenses. The ratio declined sharply from 6.38 in the first quarter of 2019 to a low of 0.12 in the third quarter of 2020, reflecting the negative EBIT and steady interest expenses during that period, signaling heightened financial risk and reduced operational profitability.
- From late 2020 onward, the ratio showed a recovery pattern, increasing steadily with some fluctuations. The interest coverage ratio surpassed 4.5 during parts of 2021, indicating improved earnings performance relative to interest obligations. While a decline was observed in early 2022 correlating with the interest expense spike, the ratio rebounded significantly by early 2023, reaching 6.58, the highest level recorded in the observed periods. This suggests a strong ability to meet interest obligations at the end of the period.
In summary, the company's earnings before interest and tax experienced pronounced volatility, including periods of negative EBIT during 2020, with a considerable recovery and growth phase thereafter. Interest expenses remained mostly stable except for a brief but notable spike in early 2022. The interest coverage ratio reflected these dynamics closely, indicating financial stress during mid-2020 periods and subsequent recovery to strong coverage levels by early 2023. Overall, the financial metrics suggest resilience and improving operational profitability following a challenging phase around 2020.