Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
EMC Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
The analysis of the financial ratios over the observed period reveals a number of notable trends in the company's financial structure and leverage management. Overall, the data indicates fluctuations in debt levels relative to equity, capital, and assets, accompanied by a generally increasing financial leverage and variable interest coverage ratios.
- Debt to Equity Ratio
- Initially, this ratio demonstrated a declining trend from 0.19 at the end of Q1 2011 to a low of 0.07 in Q4 2012, indicating a reduction in reliance on debt financing relative to shareholders' equity. However, starting from Q1 2013, there was a sharp increase, peaking around 0.32 in mid-2013, followed by some fluctuations maintaining a level between 0.24 and 0.37 up to mid-2016. This suggests a period of increased leverage after a sustained deleveraging phase.
- Debt to Capital Ratio
- This ratio followed a similar pattern as Debt to Equity, dropping from 0.16 in Q1 2011 to approximately 0.07 in Q4 2012. Subsequently, it rose significantly to around 0.24 in Q3 2013, after which it experienced moderate declines and minor fluctuations, stabilizing between 0.20 and 0.27 through mid-2016. This indicates an increased portion of debt financing within the total capital structure during the later period.
- Debt to Assets Ratio
- The ratio started at 0.10 in early 2011, declining steadily to a minimum near 0.04 by the end of 2012, implying reduced debt burden relative to total assets. Post-2012, the value increased again, reaching approximately 0.16 in mid-2013, then showing a gradual downward trend, settling around 0.13 by mid-2016. This reflects a moderation in debt levels relative to asset base after an initial rise.
- Financial Leverage Ratio
- Financial leverage remained relatively stable between 1.67 and 1.81 during the first two years, then showed a marked increase from early 2013, rising above 2.0 and peaking at about 2.23 in mid-2015. Following this peak, the ratio slightly decreased but remained above 2.0 through mid-2016. The rising financial leverage suggests an increased use of debt and other liabilities to finance asset growth and operations during this period.
- Interest Coverage Ratio
- Available data, starting from Q4 2011, indicates a consistent upward trend through 2012, reaching a high of 49.21 in Q4 2012, suggesting strong earnings relative to interest expenses at that time. However, from 2013 onwards, the interest coverage ratio exhibited a gradual decline, falling to approximately 18.55-19.42 by mid-2016. This decline may point to increasing interest expense burdens or relatively slower growth in earnings before interest and taxes during the later period.
In summary, the financial ratios depict a company that initially reduced its debt exposure relative to equity, capital, and assets up to late 2012. From 2013 onwards, there is evidence of increased leverage and debt levels, as reflected in the rising debt ratios and financial leverage. Concurrently, the ability to cover interest expenses, while initially strong, decreased over time, possibly indicating higher financial risk or pressure on profitability related to interest costs.
Debt Ratios
Coverage Ratios
Debt to Equity
EMC Corp., debt to equity calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Notes converted and payable | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 1,665) | —) | —) | —) | —) | —) | —) | 14) | 1,700) | —) | —) | —) | |||||||
| Short-term debt | 800) | 925) | 1,299) | 1,970) | 1,948) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Current portion of convertible debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 1,658) | 1,669) | 1,653) | 1,652) | 1,637) | 1,622) | 1,607) | 1,605) | 3,281) | 3,272) | 3,244) | |||||||
| Long-term debt | 5,479) | 5,477) | 5,475) | 5,474) | 5,472) | 5,495) | 5,495) | 5,494) | 5,494) | 5,494) | 5,494) | 5,493) | 5,493) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt | 6,279) | 6,402) | 6,774) | 7,444) | 7,420) | 5,495) | 5,495) | 5,494) | 5,494) | 5,494) | 7,159) | 7,151) | 7,162) | 1,653) | 1,652) | 1,637) | 1,622) | 1,621) | 3,305) | 3,281) | 3,272) | 3,244) | |||||||
| Total EMC Corporation’s shareholders’ equity | 22,138) | 21,573) | 21,140) | 20,444) | 20,077) | 20,449) | 21,896) | 22,669) | 22,321) | 22,452) | 22,301) | 22,317) | 22,590) | 22,661) | 22,357) | 21,704) | 20,937) | 20,055) | 18,959) | 17,907) | 18,203) | 17,527) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 0.28 | 0.30 | 0.32 | 0.36 | 0.37 | 0.27 | 0.25 | 0.24 | 0.25 | 0.24 | 0.32 | 0.32 | 0.32 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.17 | 0.18 | 0.18 | 0.19 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Debt to equity = Total debt ÷ Total EMC Corporation’s shareholders’ equity
= 6,279 ÷ 22,138 = 0.28
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company’s debt structure and equity position over the examined periods.
- Total Debt
- Total debt exhibited relative stability from March 31, 2011, through December 31, 2011, maintaining a range around $3,244 million to $3,305 million. A significant reduction occurred in the first quarter of 2012, where debt halved to approximately $1,621 million and remained stable through the end of that year. However, in the first quarter of 2013, total debt rose sharply to over $7,100 million, likely indicating a major financing event or capital restructuring. Following this peak, total debt declined gradually to approximately $5,494 million by December 31, 2013, stabilizing through the first quarter of 2014. Subsequently, from March 31, 2015, onward, debt levels again increased, surging to $7,420 million in June 2015, before steadily decreasing to about $6,279 million by June 30, 2016.
- Total Shareholders’ Equity
- Shareholders’ equity showed a consistent upward trend from March 31, 2011, starting at $17,527 million and rising steadily to $22,357 million by December 31, 2012. This increase suggests sustained profitability or revaluation gains during this period. From early 2013 through mid-2014, equity fluctuated mildly but largely held steady around $22,000 to $22,600 million. Notable fluctuations occurred from late 2014 to mid-2016 with a slight downswing reaching $20,449 million in June 2015 before rebounding to $22,138 million by June 30, 2016, reflecting possible operational challenges or market adjustments followed by recovery efforts.
- Debt to Equity Ratio
- The debt-to-equity ratio closely mirrors changes in debt and equity levels. From March 2011 to December 2011, the ratio gradually decreased from 0.19 to 0.17, indicating improved financial stability with debt declining relative to equity. The ratio dropped sharply in early 2012, aligning with the substantial reduction in total debt, reaching a low of 0.07 by December 2012. However, a reversal occurred in early 2013, marked by a rapid increase to 0.32, consistent with the surge in debt. After a moderate decline to 0.24 by the end of 2013, the ratio increased again between 2014 and mid-2015, peaking at 0.37 in June 2015, the highest point in the observed period. Following this spike, the ratio decreased steadily to 0.28 by mid-2016, suggesting an improving leverage position but still above earlier years.
Overall, the financial data indicate significant volatility in the company’s capital structure over the five-year span, with periods of heavy debt financing and subsequent deleveraging. Shareholders’ equity generally increased, supporting stronger capitalization, but the sharp fluctuations in debt and leverage ratios highlight phases of aggressive financing and subsequent correction. These dynamics may reflect strategic investments, refinancings, or responses to market conditions impacting the company’s financial risk profile.
Debt to Capital
EMC Corp., debt to capital calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Notes converted and payable | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 1,665) | —) | —) | —) | —) | —) | —) | 14) | 1,700) | —) | —) | —) | |||||||
| Short-term debt | 800) | 925) | 1,299) | 1,970) | 1,948) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Current portion of convertible debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 1,658) | 1,669) | 1,653) | 1,652) | 1,637) | 1,622) | 1,607) | 1,605) | 3,281) | 3,272) | 3,244) | |||||||
| Long-term debt | 5,479) | 5,477) | 5,475) | 5,474) | 5,472) | 5,495) | 5,495) | 5,494) | 5,494) | 5,494) | 5,494) | 5,493) | 5,493) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt | 6,279) | 6,402) | 6,774) | 7,444) | 7,420) | 5,495) | 5,495) | 5,494) | 5,494) | 5,494) | 7,159) | 7,151) | 7,162) | 1,653) | 1,652) | 1,637) | 1,622) | 1,621) | 3,305) | 3,281) | 3,272) | 3,244) | |||||||
| Total EMC Corporation’s shareholders’ equity | 22,138) | 21,573) | 21,140) | 20,444) | 20,077) | 20,449) | 21,896) | 22,669) | 22,321) | 22,452) | 22,301) | 22,317) | 22,590) | 22,661) | 22,357) | 21,704) | 20,937) | 20,055) | 18,959) | 17,907) | 18,203) | 17,527) | |||||||
| Total capital | 28,417) | 27,975) | 27,914) | 27,888) | 27,497) | 25,944) | 27,391) | 28,163) | 27,815) | 27,946) | 29,460) | 29,468) | 29,752) | 24,314) | 24,010) | 23,341) | 22,559) | 21,676) | 22,264) | 21,188) | 21,475) | 20,771) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.22 | 0.23 | 0.24 | 0.27 | 0.27 | 0.21 | 0.20 | 0.20 | 0.20 | 0.20 | 0.24 | 0.24 | 0.24 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.15 | 0.15 | 0.15 | 0.16 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,279 ÷ 28,417 = 0.22
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations and trends in the company's debt-related metrics over the observed periods.
- Total Debt
- The total debt exhibited a declining trend from March 2011 to March 2012, decreasing significantly from 3,244 million USD to 1,621 million USD. This was followed by a period of relative stability through March 2013, hovering around 1,650 million USD. A substantial increase was observed in the subsequent quarters beginning June 2013, with total debt jumping to 7,162 million USD and maintaining a similar elevated level through September 2013. Afterwards, total debt decreased gradually but remained above the early 2012 lows, ending at 6,279 million USD by June 2016.
- Total Capital
- Total capital showed moderate growth with some fluctuations throughout the periods. Starting from 20,771 million USD in March 2011, the total capital generally increased, peaking around 29,752 million USD in June 2013, coinciding with the period of increased total debt. After this peak, total capital experienced some declines and recovered slightly, ending at 28,417 million USD in June 2016. This overall trend indicates expansion of the company's capital base, with variability corresponding to changes in debt levels.
- Debt to Capital Ratio
- The debt to capital ratio initially decreased from 0.16 in March 2011 to as low as 0.07 between March 2012 and March 2013, reflecting a reduction in leverage during that period. However, from June 2013 onwards, the ratio increased sharply to 0.24, consistent with the sharp rise in total debt. This elevated leverage persisted, fluctuating between 0.20 and 0.27, before slightly declining to 0.22 by June 2016. The changes in this ratio highlight a shift in the company's capital structure toward higher leverage after early 2013, with moderate deleveraging afterward.
In summary, the data indicates an initial phase of deleveraging and stable capital growth up to early 2013, followed by significant debt accumulation and increased leverage. Although some reduction in debt levels and leverage occurred post-2013, the company maintained a higher debt to capital ratio compared to the earlier periods. The overall capital base expanded across the timeline, reflecting ongoing investments or growth initiatives.
Debt to Assets
EMC Corp., debt to assets calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Notes converted and payable | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 1,665) | —) | —) | —) | —) | —) | —) | 14) | 1,700) | —) | —) | —) | |||||||
| Short-term debt | 800) | 925) | 1,299) | 1,970) | 1,948) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Current portion of convertible debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 1,658) | 1,669) | 1,653) | 1,652) | 1,637) | 1,622) | 1,607) | 1,605) | 3,281) | 3,272) | 3,244) | |||||||
| Long-term debt | 5,479) | 5,477) | 5,475) | 5,474) | 5,472) | 5,495) | 5,495) | 5,494) | 5,494) | 5,494) | 5,494) | 5,493) | 5,493) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt | 6,279) | 6,402) | 6,774) | 7,444) | 7,420) | 5,495) | 5,495) | 5,494) | 5,494) | 5,494) | 7,159) | 7,151) | 7,162) | 1,653) | 1,652) | 1,637) | 1,622) | 1,621) | 3,305) | 3,281) | 3,272) | 3,244) | |||||||
| Total assets | 46,745) | 45,703) | 46,612) | 45,345) | 44,867) | 43,293) | 45,885) | 45,028) | 44,438) | 44,047) | 45,849) | 44,602) | 44,398) | 38,234) | 38,069) | 36,506) | 34,959) | 33,985) | 34,268) | 32,431) | 32,332) | 31,187) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.13 | 0.14 | 0.15 | 0.16 | 0.17 | 0.13 | 0.12 | 0.12 | 0.12 | 0.12 | 0.16 | 0.16 | 0.16 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.10 | 0.10 | 0.10 | 0.10 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,279 ÷ 46,745 = 0.13
2 Click competitor name to see calculations.
The financial data reveals several key trends in the company's debt and asset levels over the observed periods. Total debt exhibited fluctuations, starting at approximately $3.24 billion in early 2011 and remaining relatively stable through the end of that year. There was a significant reduction in debt in 2012, dropping to around $1.62 billion by mid-year and maintaining this lower level through the end of 2012. However, a notable increase occurred in 2013, with debt rising sharply to over $7.1 billion by mid-year, before decreasing again to approximately $5.5 billion by the end of 2013 and early 2014. Subsequent periods showed an uptick, reaching about $7.4 billion by mid-2015, followed by a gradual decline to roughly $6.3 billion by mid-2016.
Total assets showed an overall upward trajectory through the period, commencing at nearly $31.19 billion in early 2011 and increasing steadily to peak near $46.85 billion by mid-2016. The growth in assets was relatively consistent, with only minor fluctuations, suggesting steady expansion or accumulation of resources over the years.
The debt to assets ratio closely mirrors the changes in total debt relative to the total assets during the corresponding quarters. It remained low and stable at approximately 0.10 or less during 2011 and the first half of 2012, indicating a conservative leverage position. In 2013, this ratio rose markedly to around 0.16, reflecting the substantial increase in total debt seen in that period. A slight reduction occurred toward the end of 2013 and through 2014, with the ratio stabilizing near 0.12. The ratio increased again in 2015, peaking near 0.17 mid-year, before gradually declining to about 0.13 by mid-2016. These fluctuations suggest periods of higher leverage interspersed with attempts to deleverage or stabilize the capital structure.
Overall, the data indicates the company experienced significant shifts in its debt levels, which were not directly correlated with asset growth. While assets showed a consistent upward trend reflecting expansion or investment, debt exhibited volatility with periods of sharp increase and subsequent reduction. The debt to assets ratio's movement underscores varying leverage strategies, potentially responsive to changing financial conditions or strategic priorities.
- Total debt
- Initially steady, saw a sharp decrease in 2012, a significant rise in 2013, followed by fluctuations and a gradual decline by mid-2016.
- Total assets
- Consistent growth over the entire period, increasing roughly 50% from 2011 to 2016.
- Debt to assets ratio
- Relatively low and stable early on, rising sharply during periods of increased debt, peaking in 2013 and mid-2015, then declining towards 2016.
Financial Leverage
EMC Corp., financial leverage calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | 46,745) | 45,703) | 46,612) | 45,345) | 44,867) | 43,293) | 45,885) | 45,028) | 44,438) | 44,047) | 45,849) | 44,602) | 44,398) | 38,234) | 38,069) | 36,506) | 34,959) | 33,985) | 34,268) | 32,431) | 32,332) | 31,187) | |||||||
| Total EMC Corporation’s shareholders’ equity | 22,138) | 21,573) | 21,140) | 20,444) | 20,077) | 20,449) | 21,896) | 22,669) | 22,321) | 22,452) | 22,301) | 22,317) | 22,590) | 22,661) | 22,357) | 21,704) | 20,937) | 20,055) | 18,959) | 17,907) | 18,203) | 17,527) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 2.11 | 2.12 | 2.20 | 2.22 | 2.23 | 2.12 | 2.10 | 1.99 | 1.99 | 1.96 | 2.06 | 2.00 | 1.97 | 1.69 | 1.70 | 1.68 | 1.67 | 1.69 | 1.81 | 1.81 | 1.78 | 1.78 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Financial leverage = Total assets ÷ Total EMC Corporation’s shareholders’ equity
= 46,745 ÷ 22,138 = 2.11
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in EMC Corp's financial position over the observed periods.
- Total assets
- The total assets demonstrate a general upward trend from March 2011 to June 2016. Starting at approximately 31,187 million US dollars in March 2011, total assets increased steadily, reaching a peak of around 46,612 million US dollars at the end of December 2015. A slight decline followed in the first two quarters of 2016, with assets at 45,703 million in March and recovering to 46,745 million by June 2016. This pattern suggests consistent asset growth, with minor fluctuations near the end of the period analyzed.
- Total EMC Corporation’s shareholders’ equity
- Shareholders’ equity also increased from 17,527 million US dollars in March 2011 to a peak of about 22,452 million in March 2014. Post this peak, equity values experienced a downward trend, dipping to roughly 20,044 million in June 2015 before showing gradual recovery towards 22,138 million by June 2016. This indicates some volatility in equity after a period of growth, with signs of stabilization in the latter part of the timeline.
- Financial leverage
- The financial leverage ratio remained relatively stable between 1.67 and 1.81 up to December 2012, indicating moderate leverage with limited variation. From March 2013 onwards, the ratio displayed an increasing trend, rising from 1.69 to values above 2.0 by late 2013 and early 2014. The ratio continued to rise, peaking near 2.23 in June 2015, before slightly declining to around 2.11 in June 2016. This upward movement in leverage suggests an increasing reliance on debt financing relative to shareholders’ equity over time, particularly pronounced from 2013 onward.
Overall, the data indicate that the company's asset base expanded substantially during the period analyzed, supported by growth in equity particularly until early 2014. However, subsequent equity fluctuations alongside rising financial leverage imply a shift toward greater use of debt, potentially reflecting strategic financing decisions or changes in capital structure. The moderation of leverage and slight recovery in equity towards mid-2016 may signal efforts to stabilize the financial risk profile after periods of increased indebtedness.
Interest Coverage
EMC Corp., interest coverage calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income attributable to EMC Corporation | 581) | 268) | 771) | 480) | 487) | 252) | 1,146) | 587) | 589) | 392) | 1,022) | 586) | 701) | 580) | 870) | 626) | 650) | 587) | 832) | 606) | 546) | 477) | |||||||
| Add: Net income attributable to noncontrolling interest | 49) | 29) | 63) | 48) | 32) | 39) | 67) | 40) | 33) | 40) | 67) | 53) | 49) | 35) | 42) | 32) | 40) | 39) | 41) | 36) | 45) | 25) | |||||||
| Add: Income tax expense | 222) | 89) | 290) | 168) | 170) | 82) | 336) | 206) | 187) | 139) | 299) | 181) | 216) | 76) | 327) | 185) | 214) | 191) | 175) | 171) | 173) | 122) | |||||||
| Add: Interest expense | 42) | 41) | 42) | 41) | 41) | 40) | 39) | 40) | 34) | 34) | 46) | 58) | 31) | 21) | 21) | 21) | 19) | 18) | 35) | 44) | 46) | 45) | |||||||
| Earnings before interest and tax (EBIT) | 894) | 427) | 1,166) | 737) | 730) | 413) | 1,588) | 873) | 843) | 605) | 1,434) | 878) | 997) | 712) | 1,260) | 866) | 922) | 835) | 1,082) | 858) | 811) | 669) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | 19.42 | 18.55 | 18.57 | 21.54 | 22.53 | 24.29 | 26.59 | 24.36 | 21.84 | 23.14 | 25.78 | 29.46 | 40.78 | 46.08 | 49.21 | 39.88 | 31.94 | 24.96 | 20.06 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Interest coverage
= (EBITQ2 2016
+ EBITQ1 2016
+ EBITQ4 2015
+ EBITQ3 2015)
÷ (Interest expenseQ2 2016
+ Interest expenseQ1 2016
+ Interest expenseQ4 2015
+ Interest expenseQ3 2015)
= (894 + 427 + 1,166 + 737)
÷ (42 + 41 + 42 + 41)
= 19.42
2 Click competitor name to see calculations.
The Earnings Before Interest and Tax (EBIT) values exhibit a fluctuating trend over the analyzed periods. Starting from 669 million USD in March 2011, EBIT increases notably in December 2011 to reach 1082 million USD. It then decreases and fluctuates around 800 to 900 million USD for the subsequent quarters of 2012. A significant spike is observed in December 2012, reaching 1260 million USD, followed by a decline in the first two quarters of 2013. EBIT exhibits a similar pattern in 2013 and 2014, with a marked increase in December 2013 (1434 million USD) and December 2014 (1588 million USD). However, from March 2015 onward, EBIT tends to be lower, with values generally below 1200 million USD and a low of 413 million USD in March 2015, followed by moderate recovery in later quarters.
Interest expense remains relatively stable throughout the periods, mostly ranging between 18 and 46 million USD. There is a notable increase in the third quarter of 2013, peaking at 58 million USD, after which it returns to a range between 34 and 42 million USD. This suggests a temporary rise in borrowing costs or changes in debt structure around late 2013.
The interest coverage ratio, available from December 2011, indicates the company’s ability to meet interest obligations from its EBIT. The ratio shows a generally decreasing trend from its peak values around 49.21 in December 2012 to levels closer to 18-19 toward mid-2016. This decline in interest coverage suggests a reduction in the margin of safety with which the company covers its interest expenses. Even though EBIT fluctuations contribute to this trend, the relatively stable interest expense implies that the decreasing coverage is mostly driven by reduced EBIT in later periods.
- EBIT Trends
- EBIT shows volatile movements with several peaks in December quarters, particularly in 2011, 2012, 2013, and 2014, followed by declines and moderate recoveries. The latter periods reflect a downward shift in EBIT levels.
- Interest Expense Dynamics
- Interest expense remains mostly constant, with a standout increase in the third quarter of 2013, which is temporary and resolves subsequently.
- Interest Coverage Evolution
- The interest coverage ratio decreases from a high level in late 2012 to lower values by mid-2016, indicating reduced ability to comfortably cover interest expenses from operating earnings over time.