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)
Edwards Lifesciences Corp., solvency ratios
Based on: 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), 10-K (reporting date: 2017-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Edwards Lifesciences Corp. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021. |
| 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. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Edwards Lifesciences Corp. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021. |
| 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. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Edwards Lifesciences Corp. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
| 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. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Edwards Lifesciences Corp. financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Edwards Lifesciences Corp. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Edwards Lifesciences Corp. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Equity
Edwards Lifesciences Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | —) | —) | —) | —) | 598,000) | |
| Long-term debt | 595,700) | 595,000) | 594,400) | 593,800) | 438,400) | |
| Total debt | 595,700) | 595,000) | 594,400) | 593,800) | 1,036,400) | |
| Stockholders’ equity | 5,835,900) | 4,574,300) | 4,148,300) | 3,140,400) | 2,956,200) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.10 | 0.13 | 0.14 | 0.19 | 0.35 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | 0.50 | 0.57 | 0.58 | — | — | |
| Cigna Group | 0.71 | 0.65 | 0.83 | — | — | |
| CVS Health Corp. | 0.75 | 0.93 | 1.07 | — | — | |
| Danaher Corp. | 0.49 | 0.53 | 0.72 | — | — | |
| Elevance Health Inc. | 0.64 | 0.60 | 0.63 | — | — | |
| Humana Inc. | 0.80 | 0.51 | 0.49 | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Medtronic PLC | 0.51 | 0.49 | 0.51 | 0.51 | — | |
| UnitedHealth Group Inc. | 0.64 | 0.66 | 0.71 | — | — | |
| Debt to Equity, Sector | ||||||
| Health Care Equipment & Services | 0.61 | 0.64 | 0.72 | — | — | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.80 | 0.90 | 0.91 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 595,700 ÷ 5,835,900 = 0.10
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. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity (including Operating Lease Liability)
Edwards Lifesciences Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | —) | —) | —) | —) | 598,000) | |
| Long-term debt | 595,700) | 595,000) | 594,400) | 593,800) | 438,400) | |
| Total debt | 595,700) | 595,000) | 594,400) | 593,800) | 1,036,400) | |
| Operating lease liabilities, current portion | 25,500) | 27,200) | 25,500) | —) | —) | |
| Operating lease liabilities, long-term portion | 69,100) | 72,700) | 58,900) | —) | —) | |
| Total debt (including operating lease liability) | 690,300) | 694,900) | 678,800) | 593,800) | 1,036,400) | |
| Stockholders’ equity | 5,835,900) | 4,574,300) | 4,148,300) | 3,140,400) | 2,956,200) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.12 | 0.15 | 0.16 | 0.19 | 0.35 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.54 | 0.61 | 0.61 | — | — | |
| Cigna Group | 0.73 | 0.67 | 0.84 | — | — | |
| CVS Health Corp. | 1.01 | 1.23 | 1.39 | — | — | |
| Danaher Corp. | 0.52 | 0.56 | 0.74 | — | — | |
| Elevance Health Inc. | 0.67 | 0.63 | 0.65 | — | — | |
| Humana Inc. | 0.84 | 0.54 | 0.53 | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | — | — | |
| Medtronic PLC | 0.53 | 0.51 | 0.51 | 0.51 | — | |
| UnitedHealth Group Inc. | 0.70 | 0.73 | 0.77 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.69 | 0.72 | 0.80 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.85 | 0.96 | 0.97 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 690,300 ÷ 5,835,900 = 0.12
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. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital
Edwards Lifesciences Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | —) | —) | —) | —) | 598,000) | |
| Long-term debt | 595,700) | 595,000) | 594,400) | 593,800) | 438,400) | |
| Total debt | 595,700) | 595,000) | 594,400) | 593,800) | 1,036,400) | |
| Stockholders’ equity | 5,835,900) | 4,574,300) | 4,148,300) | 3,140,400) | 2,956,200) | |
| Total capital | 6,431,600) | 5,169,300) | 4,742,700) | 3,734,200) | 3,992,600) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.09 | 0.12 | 0.13 | 0.16 | 0.26 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | 0.34 | 0.36 | 0.37 | — | — | |
| Cigna Group | 0.42 | 0.40 | 0.45 | — | — | |
| CVS Health Corp. | 0.43 | 0.48 | 0.52 | — | — | |
| Danaher Corp. | 0.33 | 0.35 | 0.42 | — | — | |
| Elevance Health Inc. | 0.39 | 0.38 | 0.39 | — | — | |
| Humana Inc. | 0.44 | 0.34 | 0.33 | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Medtronic PLC | 0.34 | 0.33 | 0.34 | 0.34 | — | |
| UnitedHealth Group Inc. | 0.39 | 0.40 | 0.41 | — | — | |
| Debt to Capital, Sector | ||||||
| Health Care Equipment & Services | 0.38 | 0.39 | 0.42 | — | — | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.44 | 0.47 | 0.48 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 595,700 ÷ 6,431,600 = 0.09
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. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital (including Operating Lease Liability)
Edwards Lifesciences Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | —) | —) | —) | —) | 598,000) | |
| Long-term debt | 595,700) | 595,000) | 594,400) | 593,800) | 438,400) | |
| Total debt | 595,700) | 595,000) | 594,400) | 593,800) | 1,036,400) | |
| Operating lease liabilities, current portion | 25,500) | 27,200) | 25,500) | —) | —) | |
| Operating lease liabilities, long-term portion | 69,100) | 72,700) | 58,900) | —) | —) | |
| Total debt (including operating lease liability) | 690,300) | 694,900) | 678,800) | 593,800) | 1,036,400) | |
| Stockholders’ equity | 5,835,900) | 4,574,300) | 4,148,300) | 3,140,400) | 2,956,200) | |
| Total capital (including operating lease liability) | 6,526,200) | 5,269,200) | 4,827,100) | 3,734,200) | 3,992,600) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.11 | 0.13 | 0.14 | 0.16 | 0.26 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.35 | 0.38 | 0.38 | — | — | |
| Cigna Group | 0.42 | 0.40 | 0.46 | — | — | |
| CVS Health Corp. | 0.50 | 0.55 | 0.58 | — | — | |
| Danaher Corp. | 0.34 | 0.36 | 0.43 | — | — | |
| Elevance Health Inc. | 0.40 | 0.39 | 0.40 | — | — | |
| Humana Inc. | 0.46 | 0.35 | 0.34 | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | — | — | |
| Medtronic PLC | 0.35 | 0.34 | 0.34 | 0.34 | — | |
| UnitedHealth Group Inc. | 0.41 | 0.42 | 0.44 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.41 | 0.42 | 0.45 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.46 | 0.49 | 0.49 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 690,300 ÷ 6,526,200 = 0.11
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. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets
Edwards Lifesciences Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | —) | —) | —) | —) | 598,000) | |
| Long-term debt | 595,700) | 595,000) | 594,400) | 593,800) | 438,400) | |
| Total debt | 595,700) | 595,000) | 594,400) | 593,800) | 1,036,400) | |
| Total assets | 8,502,600) | 7,237,100) | 6,488,100) | 5,323,700) | 5,695,800) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.07 | 0.08 | 0.09 | 0.11 | 0.18 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | 0.24 | 0.26 | 0.27 | — | — | |
| Cigna Group | 0.22 | 0.21 | 0.24 | — | — | |
| CVS Health Corp. | 0.24 | 0.28 | 0.31 | — | — | |
| Danaher Corp. | 0.27 | 0.28 | 0.35 | — | — | |
| Elevance Health Inc. | 0.24 | 0.23 | 0.26 | — | — | |
| Humana Inc. | 0.29 | 0.20 | 0.20 | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Medtronic PLC | 0.28 | 0.27 | 0.28 | 0.28 | — | |
| UnitedHealth Group Inc. | 0.22 | 0.22 | 0.23 | — | — | |
| Debt to Assets, Sector | ||||||
| Health Care Equipment & Services | 0.24 | 0.24 | 0.27 | — | — | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.29 | 0.30 | 0.31 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 595,700 ÷ 8,502,600 = 0.07
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. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets (including Operating Lease Liability)
Edwards Lifesciences Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | —) | —) | —) | —) | 598,000) | |
| Long-term debt | 595,700) | 595,000) | 594,400) | 593,800) | 438,400) | |
| Total debt | 595,700) | 595,000) | 594,400) | 593,800) | 1,036,400) | |
| Operating lease liabilities, current portion | 25,500) | 27,200) | 25,500) | —) | —) | |
| Operating lease liabilities, long-term portion | 69,100) | 72,700) | 58,900) | —) | —) | |
| Total debt (including operating lease liability) | 690,300) | 694,900) | 678,800) | 593,800) | 1,036,400) | |
| Total assets | 8,502,600) | 7,237,100) | 6,488,100) | 5,323,700) | 5,695,800) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.08 | 0.10 | 0.10 | 0.11 | 0.18 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.26 | 0.27 | 0.28 | — | — | |
| Cigna Group | 0.22 | 0.22 | 0.24 | — | — | |
| CVS Health Corp. | 0.33 | 0.37 | 0.40 | — | — | |
| Danaher Corp. | 0.28 | 0.29 | 0.36 | — | — | |
| Elevance Health Inc. | 0.25 | 0.24 | 0.27 | — | — | |
| Humana Inc. | 0.31 | 0.21 | 0.22 | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | — | — | |
| Medtronic PLC | 0.29 | 0.28 | 0.28 | 0.28 | — | |
| UnitedHealth Group Inc. | 0.24 | 0.24 | 0.26 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.27 | 0.28 | 0.30 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.31 | 0.33 | 0.33 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 690,300 ÷ 8,502,600 = 0.08
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. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Financial Leverage
Edwards Lifesciences Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 8,502,600) | 7,237,100) | 6,488,100) | 5,323,700) | 5,695,800) | |
| Stockholders’ equity | 5,835,900) | 4,574,300) | 4,148,300) | 3,140,400) | 2,956,200) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.46 | 1.58 | 1.56 | 1.70 | 1.93 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | 2.10 | 2.21 | 2.18 | — | — | |
| Cigna Group | 3.29 | 3.09 | 3.44 | — | — | |
| CVS Health Corp. | 3.10 | 3.32 | 3.48 | — | — | |
| Danaher Corp. | 1.84 | 1.92 | 2.05 | — | — | |
| Elevance Health Inc. | 2.70 | 2.61 | 2.44 | — | — | |
| Humana Inc. | 2.76 | 2.55 | 2.42 | — | — | |
| Intuitive Surgical Inc. | 1.14 | 1.15 | 1.18 | — | — | |
| Medtronic PLC | 1.81 | 1.79 | 1.79 | 1.80 | — | |
| UnitedHealth Group Inc. | 2.96 | 3.01 | 3.02 | — | — | |
| Financial Leverage, Sector | ||||||
| Health Care Equipment & Services | 2.58 | 2.62 | 2.69 | — | — | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.79 | 2.95 | 2.93 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 8,502,600 ÷ 5,835,900 = 1.46
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. financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
Interest Coverage
Edwards Lifesciences Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 1,503,100) | 823,400) | 1,046,900) | 722,200) | 583,600) | |
| Add: Income tax expense | 198,900) | 93,300) | 119,600) | 39,200) | 451,300) | |
| Add: Interest expense | 18,400) | 15,800) | 20,700) | 29,900) | 23,200) | |
| Earnings before interest and tax (EBIT) | 1,720,400) | 932,500) | 1,187,200) | 791,300) | 1,058,100) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 93.50 | 59.02 | 57.35 | 26.46 | 45.61 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | 16.41 | 10.10 | 7.09 | — | — | |
| Cigna Group | 6.22 | 8.76 | 5.11 | — | — | |
| CVS Health Corp. | 5.16 | 4.36 | 3.96 | — | — | |
| Danaher Corp. | 32.92 | 17.35 | 31.44 | — | — | |
| Elevance Health Inc. | 10.93 | 8.96 | 9.02 | — | — | |
| Humana Inc. | 11.49 | 17.52 | 15.34 | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | 5.21 | 4.71 | 4.60 | 5.95 | — | |
| UnitedHealth Group Inc. | 14.44 | 13.47 | 11.55 | — | — | |
| Interest Coverage, Sector | ||||||
| Health Care Equipment & Services | 9.75 | 8.49 | 6.98 | — | — | |
| Interest Coverage, Industry | ||||||
| Health Care | 12.11 | 7.72 | 8.87 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,720,400 ÷ 18,400 = 93.50
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. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Fixed Charge Coverage
Edwards Lifesciences Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 1,503,100) | 823,400) | 1,046,900) | 722,200) | 583,600) | |
| Add: Income tax expense | 198,900) | 93,300) | 119,600) | 39,200) | 451,300) | |
| Add: Interest expense | 18,400) | 15,800) | 20,700) | 29,900) | 23,200) | |
| Earnings before interest and tax (EBIT) | 1,720,400) | 932,500) | 1,187,200) | 791,300) | 1,058,100) | |
| Add: Operating lease costs | 29,700) | 30,500) | 27,900) | 27,000) | 27,300) | |
| Earnings before fixed charges and tax | 1,750,100) | 963,000) | 1,215,100) | 818,300) | 1,085,400) | |
| Interest expense | 18,400) | 15,800) | 20,700) | 29,900) | 23,200) | |
| Operating lease costs | 29,700) | 30,500) | 27,900) | 27,000) | 27,300) | |
| Fixed charges | 48,100) | 46,300) | 48,600) | 56,900) | 50,500) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 36.38 | 20.80 | 25.00 | 14.38 | 21.49 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Abbott Laboratories | 10.21 | 6.68 | 5.14 | — | — | |
| Cigna Group | 5.61 | 7.84 | 4.67 | — | — | |
| CVS Health Corp. | 3.03 | 2.75 | 2.56 | — | — | |
| Danaher Corp. | 10.85 | 7.10 | 8.38 | — | — | |
| Elevance Health Inc. | 8.48 | 6.10 | 7.34 | — | — | |
| Humana Inc. | 8.05 | 12.02 | 9.76 | — | — | |
| Intuitive Surgical Inc. | 93.66 | 58.48 | 79.65 | — | — | |
| Medtronic PLC | 4.31 | 3.98 | 3.97 | 4.87 | — | |
| UnitedHealth Group Inc. | 8.80 | 8.51 | 7.65 | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Health Care Equipment & Services | 6.22 | 5.60 | 4.86 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 8.58 | 5.70 | 6.61 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,750,100 ÷ 48,100 = 36.38
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. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |