Debt to Equity
since 2005
Calculation
EMC Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Total EMC Corporation’s shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 0.32 | = | 6,774) | ÷ | 21,140) |
| Dec 31, 2014 | 0.25 | = | 5,495) | ÷ | 21,896) |
| Dec 31, 2013 | 0.32 | = | 7,159) | ÷ | 22,301) |
| Dec 31, 2012 | 0.07 | = | 1,652) | ÷ | 22,357) |
| Dec 31, 2011 | 0.17 | = | 3,305) | ÷ | 18,959) |
| Dec 31, 2010 | 0.18 | = | 3,215) | ÷ | 17,404) |
| Dec 31, 2009 | 0.20 | = | 3,100) | ÷ | 15,550) |
| Dec 31, 2008 | 0.23 | = | 2,992) | ÷ | 13,042) |
| Dec 31, 2007 | 0.23 | = | 2,889) | ÷ | 12,521) |
| Dec 31, 2006 | 0.27 | = | 2,792) | ÷ | 10,326) |
| Dec 31, 2005 | 0.01 | = | 130) | ÷ | 12,065) |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The analysis of financial trends indicates a dynamic shift in the leverage profile of the organization between 2005 and 2015. While shareholders' equity demonstrated a consistent long-term growth trajectory, total debt experienced periods of stability followed by sharp fluctuations, impacting the overall debt-to-equity ratio.
- Leverage Stability and Initial Growth
- Between 2005 and 2011, the debt-to-equity ratio transitioned from a negligible 0.01 to a range between 0.17 and 0.27. This period was characterized by a steady increase in total debt from 130 million to 3,305 million, offset by a concurrent rise in shareholders' equity from 12,065 million to 18,959 million.
- Deleveraging Event
- A significant reduction in leverage occurred in 2012, where the debt-to-equity ratio reached its lowest point since 2005 at 0.07. This decline was driven by a substantial reduction in total debt to 1,652 million, coinciding with the peak of shareholders' equity at 22,357 million.
- Increased Debt Obligations
- Starting in 2013, a sharp increase in leverage is observed, with the debt-to-equity ratio jumping to 0.32. This was the result of total debt increasing to 7,159 million. Although debt decreased slightly in 2014, the ratio remained elevated, returning to 0.32 by 2015 as total debt rose again to 6,774 million.
Overall, the organization maintains a relatively conservative leverage profile, as the debt-to-equity ratio never exceeded 0.32 throughout the analyzed period, despite the significant increase in absolute debt levels after 2012.
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Comparison to Competitors
EMC Corp., debt to equity, long-term trends, comparison to competitors
| EMC Corp. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 0.32 | — | 0.17 | 0.60 | 0.84 | 0.37 | 7.57 | 0.46 | 0.00 | 0.60 | 0.32 | 0.35 | 0.41 |
| Dec 31, 2014 | 0.25 | 11.83 | 0.18 | 0.25 | 1.70 | 0.25 | 0.20 | 0.27 | 0.00 | 0.61 | 0.31 | 0.00 | 0.45 |
| Dec 31, 2013 | 0.32 | 3.78 | 0.18 | 0.27 | 0.00 | 0.23 | 0.21 | 0.29 | 0.00 | 0.66 | 0.00 | 0.00 | 0.48 |
| Dec 31, 2012 | 0.07 | 3.80 | 0.20 | 0.27 | 0.00 | 0.26 | 0.23 | 0.25 | 0.00 | 0.42 | 0.01 | 0.00 | 0.52 |
| Dec 31, 2011 | 0.17 | 1.27 | 0.23 | 0.22 | 0.00 | 0.16 | 0.26 | 0.30 | 0.00 | 0.24 | 0.01 | 0.04 | 0.51 |
| Dec 31, 2010 | 0.18 | 2.39 | 0.13 | 0.03 | 0.15 | 0.04 | 0.33 | 0.01 | 0.00 | 0.29 | 0.01 | 0.05 | 0.00 |
| Dec 31, 2009 | 0.20 | 7.30 | 0.00 | 0.03 | 0.57 | 0.05 | 0.34 | 0.03 | 0.00 | 0.67 | 0.01 | 0.00 | 0.00 |
| Dec 31, 2008 | 0.23 | — | 0.00 | 0.03 | — | 0.05 | 0.25 | 0.17 | 0.12 | 0.44 | 0.00 | 0.00 | 0.00 |
| Dec 31, 2007 | 0.23 | 1.76 | 0.00 | 0.03 | — | 0.05 | 0.00 | 0.21 | 0.13 | 0.31 | 0.00 | 0.00 | 0.00 |
| Dec 31, 2006 | 0.27 | 0.66 | 0.00 | 0.06 | — | 0.06 | 0.00 | 0.25 | 0.01 | 0.07 | 0.00 | 0.00 | 0.00 |
| Dec 31, 2005 | 0.01 | 0.41 | 0.00 | 0.05 | — | 0.07 | 0.00 | 0.00 | 0.01 | 0.20 | 0.00 | 0.00 | 0.06 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
EMC Corp., debt to equity, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| EMC Corp. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2015 | 0.32 | 0.43 |
| Dec 31, 2014 | 0.25 | 0.26 |
| Dec 31, 2013 | 0.32 | 0.22 |
| Dec 31, 2012 | 0.07 | 0.22 |
| Dec 31, 2011 | 0.17 | 0.18 |
| Dec 31, 2010 | 0.18 | 0.09 |
| Dec 31, 2009 | 0.20 | 0.12 |
| Dec 31, 2008 | 0.23 | 0.12 |
| Dec 31, 2007 | 0.23 | 0.11 |
| Dec 31, 2006 | 0.27 | 0.08 |
| Dec 31, 2005 | 0.01 | 0.07 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
EMC Corp., debt to equity, long-term trends, comparison to industry (information technology)
| EMC Corp. | Information Technology | |
|---|---|---|
| Dec 31, 2015 | 0.32 | 0.56 |
| Dec 31, 2014 | 0.25 | 0.38 |
| Dec 31, 2013 | 0.32 | 0.28 |
| Dec 31, 2012 | 0.07 | 0.24 |
| Dec 31, 2011 | 0.17 | 0.27 |
| Dec 31, 2010 | 0.18 | 0.24 |
| Dec 31, 2009 | 0.20 | 0.25 |
| Dec 31, 2008 | 0.23 | 0.28 |
| Dec 31, 2007 | 0.23 | 0.26 |
| Dec 31, 2006 | 0.27 | 0.19 |
| Dec 31, 2005 | 0.01 | 0.15 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).