Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Solvency Ratios (Summary)
Edwards Lifesciences Corp., solvency ratios
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Edwards Lifesciences Corp.’s debt to equity ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Edwards Lifesciences Corp.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Edwards Lifesciences Corp.’s debt to capital ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Edwards Lifesciences Corp.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Edwards Lifesciences Corp.’s debt to assets ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Edwards Lifesciences Corp.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Edwards Lifesciences Corp.’s financial leverage ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Edwards Lifesciences Corp.’s interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Edwards Lifesciences Corp.’s fixed charge coverage ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |
Debt to Equity
Edwards Lifesciences Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | — | — | — | 598,000 | — | |
| Long-term debt | 595,000 | 594,400 | 593,800 | 438,400 | 822,300 | |
| Total debt | 595,000 | 594,400 | 593,800 | 1,036,400 | 822,300 | |
| Stockholders’ equity | 4,574,300 | 4,148,300 | 3,140,400 | 2,956,200 | 2,619,000 | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.13 | 0.14 | 0.19 | 0.35 | 0.31 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Becton, Dickinson & Co. | 0.75 | 0.92 | 1.02 | 1.46 | 1.51 | |
| Boston Scientific Corp. | 0.60 | 0.72 | 0.81 | 0.80 | 0.81 | |
| Danaher Corp. | 0.53 | 0.72 | 0.35 | 0.40 | 0.53 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.49 | 0.51 | 0.51 | 0.66 | 0.60 | |
| Stryker Corp. | 1.07 | 0.87 | 0.84 | 0.72 | 0.72 | |
| Thermo Fisher Scientific Inc. | 0.63 | 0.60 | 0.69 | 0.83 | 0.77 | |
| UnitedHealth Group Inc. | 0.66 | 0.71 | 0.71 | 0.66 | 0.86 | |
| Debt to Equity, Sector | ||||||
| Health Care Equipment & Services | 0.59 | 0.64 | 0.62 | 0.69 | 0.71 | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.92 | 0.91 | 0.83 | 0.84 | 0.79 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
1 2020 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 595,000 ÷ 4,574,300 = 0.13
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Edwards Lifesciences Corp.’s debt to equity ratio improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Equity (including Operating Lease Liability)
Edwards Lifesciences Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | — | — | — | 598,000 | — | |
| Long-term debt | 595,000 | 594,400 | 593,800 | 438,400 | 822,300 | |
| Total debt | 595,000 | 594,400 | 593,800 | 1,036,400 | 822,300 | |
| Operating lease liabilities, current portion | 27,200 | 25,500 | — | — | — | |
| Operating lease liabilities, long-term portion | 72,700 | 58,900 | — | — | — | |
| Total debt (including operating lease liability) | 694,900 | 678,800 | 593,800 | 1,036,400 | 822,300 | |
| Stockholders’ equity | 4,574,300 | 4,148,300 | 3,140,400 | 2,956,200 | 2,619,000 | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.15 | 0.16 | 0.19 | 0.35 | 0.31 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Becton, Dickinson & Co. | 0.77 | 0.92 | 1.02 | 1.46 | 1.51 | |
| Boston Scientific Corp. | 0.63 | 0.75 | 0.81 | 0.80 | 0.81 | |
| Danaher Corp. | 0.56 | 0.74 | 0.35 | 0.40 | 0.53 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.51 | 0.51 | 0.51 | 0.66 | 0.60 | |
| Stryker Corp. | 1.10 | 0.90 | 0.84 | 0.72 | 0.72 | |
| Thermo Fisher Scientific Inc. | 0.65 | 0.62 | 0.69 | 0.83 | 0.77 | |
| UnitedHealth Group Inc. | 0.73 | 0.77 | 0.71 | 0.66 | 0.86 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.63 | 0.67 | 0.62 | 0.69 | 0.71 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.95 | 0.94 | 0.83 | 0.84 | 0.79 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 694,900 ÷ 4,574,300 = 0.15
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Edwards Lifesciences Corp.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Capital
Edwards Lifesciences Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | — | — | — | 598,000 | — | |
| Long-term debt | 595,000 | 594,400 | 593,800 | 438,400 | 822,300 | |
| Total debt | 595,000 | 594,400 | 593,800 | 1,036,400 | 822,300 | |
| Stockholders’ equity | 4,574,300 | 4,148,300 | 3,140,400 | 2,956,200 | 2,619,000 | |
| Total capital | 5,169,300 | 4,742,700 | 3,734,200 | 3,992,600 | 3,441,300 | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.12 | 0.13 | 0.16 | 0.26 | 0.24 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Becton, Dickinson & Co. | 0.43 | 0.48 | 0.51 | 0.59 | 0.60 | |
| Boston Scientific Corp. | 0.37 | 0.42 | 0.45 | 0.44 | 0.45 | |
| Danaher Corp. | 0.35 | 0.42 | 0.26 | 0.29 | 0.35 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.33 | 0.34 | 0.34 | 0.40 | 0.38 | |
| Stryker Corp. | 0.52 | 0.46 | 0.46 | 0.42 | 0.42 | |
| Thermo Fisher Scientific Inc. | 0.39 | 0.37 | 0.41 | 0.45 | 0.44 | |
| UnitedHealth Group Inc. | 0.40 | 0.41 | 0.41 | 0.40 | 0.46 | |
| Debt to Capital, Sector | ||||||
| Health Care Equipment & Services | 0.37 | 0.39 | 0.38 | 0.41 | 0.41 | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.48 | 0.48 | 0.45 | 0.46 | 0.44 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 595,000 ÷ 5,169,300 = 0.12
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Edwards Lifesciences Corp.’s debt to capital ratio improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Capital (including Operating Lease Liability)
Edwards Lifesciences Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | — | — | — | 598,000 | — | |
| Long-term debt | 595,000 | 594,400 | 593,800 | 438,400 | 822,300 | |
| Total debt | 595,000 | 594,400 | 593,800 | 1,036,400 | 822,300 | |
| Operating lease liabilities, current portion | 27,200 | 25,500 | — | — | — | |
| Operating lease liabilities, long-term portion | 72,700 | 58,900 | — | — | — | |
| Total debt (including operating lease liability) | 694,900 | 678,800 | 593,800 | 1,036,400 | 822,300 | |
| Stockholders’ equity | 4,574,300 | 4,148,300 | 3,140,400 | 2,956,200 | 2,619,000 | |
| Total capital (including operating lease liability) | 5,269,200 | 4,827,100 | 3,734,200 | 3,992,600 | 3,441,300 | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.13 | 0.14 | 0.16 | 0.26 | 0.24 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Becton, Dickinson & Co. | 0.44 | 0.48 | 0.51 | 0.59 | 0.60 | |
| Boston Scientific Corp. | 0.39 | 0.43 | 0.45 | 0.44 | 0.45 | |
| Danaher Corp. | 0.36 | 0.43 | 0.26 | 0.29 | 0.35 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.34 | 0.34 | 0.34 | 0.40 | 0.38 | |
| Stryker Corp. | 0.52 | 0.47 | 0.46 | 0.42 | 0.42 | |
| Thermo Fisher Scientific Inc. | 0.40 | 0.38 | 0.41 | 0.45 | 0.44 | |
| UnitedHealth Group Inc. | 0.42 | 0.44 | 0.41 | 0.40 | 0.46 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.39 | 0.40 | 0.38 | 0.41 | 0.41 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.49 | 0.48 | 0.45 | 0.46 | 0.44 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 694,900 ÷ 5,269,200 = 0.13
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Edwards Lifesciences Corp.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Assets
Edwards Lifesciences Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | — | — | — | 598,000 | — | |
| Long-term debt | 595,000 | 594,400 | 593,800 | 438,400 | 822,300 | |
| Total debt | 595,000 | 594,400 | 593,800 | 1,036,400 | 822,300 | |
| Total assets | 7,237,100 | 6,488,100 | 5,323,700 | 5,695,800 | 4,510,000 | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.08 | 0.09 | 0.11 | 0.18 | 0.18 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Becton, Dickinson & Co. | 0.33 | 0.37 | 0.40 | 0.50 | 0.45 | |
| Boston Scientific Corp. | 0.30 | 0.33 | 0.34 | 0.29 | 0.30 | |
| Danaher Corp. | 0.28 | 0.35 | 0.20 | 0.23 | 0.27 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.27 | 0.28 | 0.28 | 0.34 | 0.31 | |
| Stryker Corp. | 0.41 | 0.37 | 0.36 | 0.33 | 0.34 | |
| Thermo Fisher Scientific Inc. | 0.31 | 0.30 | 0.34 | 0.37 | 0.36 | |
| UnitedHealth Group Inc. | 0.22 | 0.23 | 0.24 | 0.23 | 0.27 | |
| Debt to Assets, Sector | ||||||
| Health Care Equipment & Services | 0.27 | 0.29 | 0.28 | 0.30 | 0.30 | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.33 | 0.33 | 0.31 | 0.32 | 0.31 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 595,000 ÷ 7,237,100 = 0.08
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Edwards Lifesciences Corp.’s debt to assets ratio improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Assets (including Operating Lease Liability)
Edwards Lifesciences Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | — | — | — | 598,000 | — | |
| Long-term debt | 595,000 | 594,400 | 593,800 | 438,400 | 822,300 | |
| Total debt | 595,000 | 594,400 | 593,800 | 1,036,400 | 822,300 | |
| Operating lease liabilities, current portion | 27,200 | 25,500 | — | — | — | |
| Operating lease liabilities, long-term portion | 72,700 | 58,900 | — | — | — | |
| Total debt (including operating lease liability) | 694,900 | 678,800 | 593,800 | 1,036,400 | 822,300 | |
| Total assets | 7,237,100 | 6,488,100 | 5,323,700 | 5,695,800 | 4,510,000 | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.10 | 0.10 | 0.11 | 0.18 | 0.18 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Becton, Dickinson & Co. | 0.34 | 0.37 | 0.40 | 0.50 | 0.45 | |
| Boston Scientific Corp. | 0.31 | 0.34 | 0.34 | 0.29 | 0.30 | |
| Danaher Corp. | 0.29 | 0.36 | 0.20 | 0.23 | 0.27 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.28 | 0.28 | 0.28 | 0.34 | 0.31 | |
| Stryker Corp. | 0.42 | 0.38 | 0.36 | 0.33 | 0.34 | |
| Thermo Fisher Scientific Inc. | 0.33 | 0.32 | 0.34 | 0.37 | 0.36 | |
| UnitedHealth Group Inc. | 0.24 | 0.26 | 0.24 | 0.23 | 0.27 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.28 | 0.30 | 0.28 | 0.30 | 0.30 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.34 | 0.34 | 0.31 | 0.32 | 0.31 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 694,900 ÷ 7,237,100 = 0.10
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Edwards Lifesciences Corp.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
Financial Leverage
Edwards Lifesciences Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 7,237,100 | 6,488,100 | 5,323,700 | 5,695,800 | 4,510,000 | |
| Stockholders’ equity | 4,574,300 | 4,148,300 | 3,140,400 | 2,956,200 | 2,619,000 | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.58 | 1.56 | 1.70 | 1.93 | 1.72 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Becton, Dickinson & Co. | 2.27 | 2.46 | 2.57 | 2.91 | 3.35 | |
| Boston Scientific Corp. | 2.01 | 2.20 | 2.41 | 2.72 | 2.69 | |
| Danaher Corp. | 1.92 | 2.05 | 1.70 | 1.77 | 1.97 | |
| Intuitive Surgical Inc. | 1.15 | 1.18 | 1.17 | 1.22 | 1.12 | |
| Medtronic PLC | 1.79 | 1.79 | 1.80 | 1.98 | 1.92 | |
| Stryker Corp. | 2.62 | 2.36 | 2.32 | 2.23 | 2.14 | |
| Thermo Fisher Scientific Inc. | 2.00 | 1.97 | 2.04 | 2.23 | 2.13 | |
| UnitedHealth Group Inc. | 3.01 | 3.02 | 2.94 | 2.91 | 3.21 | |
| Financial Leverage, Sector | ||||||
| Health Care Equipment & Services | 2.22 | 2.25 | 2.21 | 2.31 | 2.33 | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.82 | 2.77 | 2.68 | 2.66 | 2.54 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
1 2020 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 7,237,100 ÷ 4,574,300 = 1.58
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Edwards Lifesciences Corp.’s financial leverage ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020. |
Interest Coverage
Edwards Lifesciences Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 823,400 | 1,046,900 | 722,200 | 583,600 | 569,500 | |
| Add: Income tax expense | 93,300 | 119,600 | 39,200 | 451,300 | 168,400 | |
| Add: Interest expense | 15,800 | 20,700 | 29,900 | 23,200 | 19,200 | |
| Earnings before interest and tax (EBIT) | 932,500 | 1,187,200 | 791,300 | 1,058,100 | 757,100 | |
| Solvency Ratio | ||||||
| Interest coverage1 | 59.02 | 57.35 | 26.46 | 45.61 | 39.43 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Becton, Dickinson & Co. | 2.87 | 2.84 | 2.66 | 2.87 | 3.77 | |
| Boston Scientific Corp. | 0.78 | 2.45 | 6.90 | 5.07 | 1.76 | |
| Danaher Corp. | 17.35 | 31.44 | 21.92 | 19.06 | 15.16 | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | 4.71 | 4.60 | 5.95 | 5.21 | 4.13 | |
| Stryker Corp. | 7.20 | 9.93 | 9.92 | 9.35 | 9.43 | |
| Thermo Fisher Scientific Inc. | 14.07 | 7.02 | 5.89 | 5.10 | 5.31 | |
| UnitedHealth Group Inc. | 13.47 | 11.55 | 12.39 | 12.82 | 12.12 | |
| Interest Coverage, Sector | ||||||
| Health Care Equipment & Services | 9.64 | 8.03 | 8.63 | 8.42 | 7.47 | |
| Interest Coverage, Industry | ||||||
| Health Care | 7.98 | 9.95 | 9.71 | 10.14 | 10.74 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 932,500 ÷ 15,800 = 59.02
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Edwards Lifesciences Corp.’s interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |
Fixed Charge Coverage
Edwards Lifesciences Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 823,400 | 1,046,900 | 722,200 | 583,600 | 569,500 | |
| Add: Income tax expense | 93,300 | 119,600 | 39,200 | 451,300 | 168,400 | |
| Add: Interest expense | 15,800 | 20,700 | 29,900 | 23,200 | 19,200 | |
| Earnings before interest and tax (EBIT) | 932,500 | 1,187,200 | 791,300 | 1,058,100 | 757,100 | |
| Add: Operating lease costs | 30,500 | 27,900 | 27,000 | 27,300 | 22,900 | |
| Earnings before fixed charges and tax | 963,000 | 1,215,100 | 818,300 | 1,085,400 | 780,000 | |
| Interest expense | 15,800 | 20,700 | 29,900 | 23,200 | 19,200 | |
| Operating lease costs | 30,500 | 27,900 | 27,000 | 27,300 | 22,900 | |
| Fixed charges | 46,300 | 48,600 | 56,900 | 50,500 | 42,100 | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 20.80 | 25.00 | 14.38 | 21.49 | 18.53 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Becton, Dickinson & Co. | 2.07 | 1.99 | 1.92 | 2.18 | 3.15 | |
| Boston Scientific Corp. | 0.76 | 2.24 | 5.27 | 3.94 | 1.57 | |
| Danaher Corp. | 7.10 | 8.38 | 8.49 | 8.14 | 7.46 | |
| Intuitive Surgical Inc. | 58.48 | 79.65 | — | — | — | |
| Medtronic PLC | 3.98 | 3.97 | 4.87 | 4.32 | 3.62 | |
| Stryker Corp. | 5.39 | 7.10 | 6.86 | 6.55 | 6.65 | |
| Thermo Fisher Scientific Inc. | 10.30 | 5.60 | 4.72 | 4.07 | 4.11 | |
| UnitedHealth Group Inc. | 8.51 | 7.65 | 8.41 | 8.40 | 8.08 | |
| Fixed Charge Coverage, Sector | ||||||
| Health Care Equipment & Services | 6.55 | 5.78 | 6.16 | 6.05 | 5.61 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 6.14 | 7.68 | 7.66 | 7.99 | 8.46 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
1 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 963,000 ÷ 46,300 = 20.80
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Edwards Lifesciences Corp.’s fixed charge coverage ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |