Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Analysis of Debt
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Solvency Ratios (Summary)
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Debt to Equity Ratio
- The debt to equity ratio experienced moderate fluctuations from March 2017 to June 2018, initially rising from 0.31 to a peak of 0.38 in June 2018. Following this, there was a marked decline starting in December 2018, dropping from 0.19 to 0.10 by December 2021, indicating a consistent reduction in reliance on debt relative to equity over the latter period.
- Debt to Equity Ratio (Including Operating Lease Liability)
- This ratio followed a similar trajectory to the standard debt to equity ratio but remained slightly higher throughout the timeline. After peaking at 0.38 in June 2018, it decreased steadily from 0.19 in December 2018 to 0.12 by December 2021. This suggests that operating lease liabilities contribute meaningfully to total debt but have also diminished somewhat over time.
- Debt to Capital Ratio
- The debt to capital ratio was fairly stable with minor fluctuations through September 2018, ranging between 0.24 and 0.27. Beginning in December 2018, the ratio fell consistently from 0.16 to 0.09 by the end of 2021, suggesting an improved capital structure with greater equity relative to debt.
- Debt to Capital Ratio (Including Operating Lease Liability)
- This variant of the debt to capital ratio showed a similar pattern of decline as the standard measure, though values were consistently slightly higher. After peaking at 0.27 in June 2018, it dropped to 0.11 by December 2021, indicating a comparable reduction in liabilities associated with operating leases over the period.
- Debt to Assets Ratio
- The debt to assets ratio mirrored the patterns observed in the other debt metrics, increasing modestly reaching 0.21 in June 2018, then declining steadily from 0.11 in December 2018 to 0.07 by December 2021. This indicates a decrease in the proportion of assets financed through debt.
- Debt to Assets Ratio (Including Operating Lease Liability)
- This ratio was slightly higher than the standard measure but followed the same descent, moving from 0.20 in June 2018 down to 0.08 in December 2021. This reflects a gradual reduction in total debt obligations relative to total assets when including operating leases.
- Financial Leverage
- Financial leverage showed a more complex trajectory, initially stable around 1.74 to 1.75 in early 2017, then spiking to 1.93 in December 2017. Afterward, it declined steadily to 1.46 by the end of 2021. This overall reduction suggests improved asset financing balance, with lower reliance on debt and increased equity.
Debt Ratios
Debt to Equity
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
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Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
Short-term debt | ||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||
Total debt | ||||||||||||||||||||||||||
Stockholders’ equity | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to equity1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Equity, Competitors2 | ||||||||||||||||||||||||||
Abbott Laboratories | ||||||||||||||||||||||||||
CVS Health Corp. | ||||||||||||||||||||||||||
Elevance Health Inc. | ||||||||||||||||||||||||||
Intuitive Surgical Inc. | ||||||||||||||||||||||||||
Medtronic PLC | ||||||||||||||||||||||||||
UnitedHealth Group Inc. |
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data over the specified periods reveals notable trends in the company's capital structure concerning debt levels and equity.
- Total Debt
- Total debt exhibited an increasing trend from the first quarter of 2017 through mid-2018, rising from approximately 848 million USD to a peak of about 1.19 billion USD by June and September 2018. Subsequently, a sharp decline occurred in the last quarter of 2018, with total debt dropping substantially to around 594 million USD, maintaining relatively stable levels thereafter through to the end of 2021, fluctuating minimally around 595 million USD.
- Stockholders’ Equity
- Stockholders’ equity showed a consistent upward trajectory throughout the period analyzed, increasing from approximately 2.74 billion USD in the first quarter of 2017 to nearly 5.84 billion USD by the fourth quarter of 2021. Despite some minor fluctuations, the equity base expanded steadily, reflecting growth in retained earnings, other comprehensive income, or equity issuances over the years.
- Debt to Equity Ratio
- The debt to equity ratio started at 0.31 in the first quarter of 2017, indicating a moderate leverage level. This ratio increased slightly to a maximum of 0.38 during the middle of 2018, corresponding with the peak in total debt during that time. After the substantial reduction in total debt in late 2018, the leverage ratio declined sharply to 0.19 and continued a downward trend to 0.10 by the end of 2021. This steady reduction suggests a strengthening equity position relative to debt and a conservative capital structure approach in recent years.
Overall, the financial data indicates that the company managed to reduce its leverage significantly from 2018 onward while concurrently growing its equity base. This pattern suggests an emphasis on deleveraging and improving financial stability. The stable level of debt since late 2018, combined with continuous equity growth, has resulted in a gradually decreasing debt to equity ratio, enhancing the company's balance sheet resilience and potentially improving creditworthiness.
Debt to Equity (including Operating Lease Liability)
Edwards Lifesciences Corp., debt to equity (including operating lease liability) calculation (quarterly data)
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
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Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
Short-term debt | ||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||
Total debt | ||||||||||||||||||||||||||
Operating lease liabilities, current portion | ||||||||||||||||||||||||||
Operating lease liabilities, long-term portion | ||||||||||||||||||||||||||
Total debt (including operating lease liability) | ||||||||||||||||||||||||||
Stockholders’ equity | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to equity (including operating lease liability)1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
CVS Health Corp. |
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends over the analyzed periods.
- Total debt (including operating lease liability)
- The total debt exhibited a fluctuating pattern. Starting at approximately 848 million US dollars at the beginning of 2017, it increased steadily to peak around 1.19 billion US dollars by mid-2018. Subsequently, there was a marked reduction in debt by the end of 2018 to roughly 594 million US dollars. After this significant drop, total debt maintained a relatively stable level around 670 million to 695 million US dollars through the end of 2021, indicating a lower leverage position compared to earlier periods.
- Stockholders’ equity
- Stockholders’ equity showed an overall upward trajectory across the entire timeframe. Beginning at about 2.74 billion US dollars in early 2017, it gradually increased with some fluctuations, reaching approximately 3.36 billion by late 2018. From 2019 onward, equity demonstrated consistent growth, accelerating particularly in 2020 and 2021, and attaining nearly 5.84 billion US dollars at the close of 2021. This trend suggests sustained profitability or capital infusion enhancing the company’s net asset base.
- Debt to equity ratio (including operating lease liability)
- The debt to equity ratio reflected significant improvement in the company’s capital structure. Initially ranging around 0.31 to 0.38 through mid-2018, the ratio sharply declined with the reduction in total debt in late 2018, dropping below 0.20. Subsequent periods saw continued gradual decreases in this leverage metric, ending near 0.12 by the close of 2021. This indicates a progressively more conservative financial stance with lower reliance on debt financing relative to equity.
Overall, the data indicates a strategic deleveraging trend starting in late 2018, accompanied by a strong increase in equity, resulting in reduced financial risk and improved balance sheet strength through 2021.
Debt to Capital
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
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Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
Short-term debt | ||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||
Total debt | ||||||||||||||||||||||||||
Stockholders’ equity | ||||||||||||||||||||||||||
Total capital | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to capital1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Capital, Competitors2 | ||||||||||||||||||||||||||
Abbott Laboratories | ||||||||||||||||||||||||||
CVS Health Corp. | ||||||||||||||||||||||||||
Elevance Health Inc. | ||||||||||||||||||||||||||
Intuitive Surgical Inc. | ||||||||||||||||||||||||||
Medtronic PLC | ||||||||||||||||||||||||||
UnitedHealth Group Inc. |
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
-
The total debt of the company exhibited an initial upward trend from March 2017 through September 2018, increasing from approximately 848 million USD to roughly 1.19 billion USD. Notably, after September 2018, total debt experienced a significant reduction, dropping to approximately 594 million USD by December 2018. From this point onward, the total debt figure remained relatively stable, maintaining a level close to 594-596 million USD through the end of 2021.
- Total Capital
-
Total capital steadily increased over the analyzed periods with some variability. Starting at about 3.59 billion USD in March 2017, it rose to a peak of approximately 4.55 billion USD by September 2018 before declining sharply to around 3.73 billion USD at the end of 2018. Following this decrease, total capital generally trended upward again, reaching approximately 6.43 billion USD by December 2021, indicating overall growth in the company's capital base over the time horizon despite short-term fluctuations.
- Debt to Capital Ratio
-
The debt to capital ratio showed a clear declining trend throughout the observed period. Beginning at 0.24 in March 2017, the ratio increased modestly to around 0.27 mid-2018 before dropping sharply to 0.16 at the end of 2018. Subsequently, the ratio continued to decrease consistently, reaching 0.09 by December 2021. This progression implies a reduced reliance on debt financing relative to the company’s capital over time, reflecting a potential strategy to strengthen the equity base or deleverage the balance sheet.
- Overall Trends and Insights
-
The data indicates a period of elevated borrowing culminating in mid-2018, followed by a significant reduction in total debt and a simultaneous contraction in total capital by the end of 2018. From early 2019 onwards, the stabilization of debt figures coupled with a robust increase in total capital led to a marked improvement in the company's leverage position. The consistent decline in the debt to capital ratio underscores a strategic focus on reducing indebtedness and enhancing financial stability. The increase in total capital towards the latter periods might suggest successful capital raises, retained earnings accumulation, or asset growth, contributing to overall balance sheet strengthening.
Debt to Capital (including Operating Lease Liability)
Edwards Lifesciences Corp., debt to capital (including operating lease liability) calculation (quarterly data)
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
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Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
Short-term debt | ||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||
Total debt | ||||||||||||||||||||||||||
Operating lease liabilities, current portion | ||||||||||||||||||||||||||
Operating lease liabilities, long-term portion | ||||||||||||||||||||||||||
Total debt (including operating lease liability) | ||||||||||||||||||||||||||
Stockholders’ equity | ||||||||||||||||||||||||||
Total capital (including operating lease liability) | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to capital (including operating lease liability)1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
CVS Health Corp. |
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt shows an increasing trend from March 2017 through June 2018, rising from approximately $848 million to about $1.19 billion. This is followed by a significant decline in December 2018 to around $594 million. From this point onward, the debt levels remain relatively stable, fluctuating slightly around $670 million to $690 million through the end of 2021. The sharp reduction observed in late 2018 represents a notable deleveraging event or possibly restructuring.
- Total capital (including operating lease liability)
- Total capital exhibits an overall upward trajectory throughout the period under review. Starting at roughly $3.59 billion in early 2017, it experiences steady growth with some volatility, reaching approximately $4.56 billion by September 2018 before declining in December 2018 to about $3.73 billion. After this dip, total capital increasingly rises, reaching $6.53 billion by the end of 2021. This indicates substantial expansion in the company's capital base, especially after the end of 2018.
- Debt to capital (including operating lease liability)
- The debt-to-capital ratio initially fluctuates between 0.24 and 0.27 from early 2017 until mid-2018, reflecting a moderate leverage position. A marked reduction in this ratio is visible at the end of 2018, dropping sharply to approximately 0.16 and continuing to decline steadily over the subsequent periods. By the end of 2021, the ratio decreases further to 0.11, indicating a sustained reduction in leverage relative to capital. This suggests improved capital structure management and potentially a lower risk profile related to debt.
- Overall analysis
- The company appears to have undergone a significant deleveraging phase around late 2018, reducing both absolute debt levels and leverage ratios sharply. Following this adjustment, the capital base expanded substantially, accompanied by a relatively stable but modest level of total debt. The continuous decline in the debt-to-capital ratio towards the end of the analyzed period suggests a strategic move towards lower reliance on debt financing and stronger capitalization.
Debt to Assets
Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
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Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
Short-term debt | ||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||
Total debt | ||||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to assets1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Assets, Competitors2 | ||||||||||||||||||||||||||
Abbott Laboratories | ||||||||||||||||||||||||||
CVS Health Corp. | ||||||||||||||||||||||||||
Elevance Health Inc. | ||||||||||||||||||||||||||
Intuitive Surgical Inc. | ||||||||||||||||||||||||||
Medtronic PLC | ||||||||||||||||||||||||||
UnitedHealth Group Inc. |
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt showed an overall increasing trend from March 31, 2017, reaching a peak around September 30, 2018, at approximately 1.19 million US$ thousands. Following this peak, there was a significant reduction in debt by December 31, 2018, dropping to roughly 594,000 US$ thousands. From this point until the end of 2021, the total debt remained relatively stable, fluctuating slightly but staying close to the 595,000 US$ thousands mark.
- Total Assets
- Total assets increased steadily from March 31, 2017, starting at about 4.78 million US$ thousands and showing consistent growth with minor fluctuations. Notably, there was a dip observed in December 31, 2018, when assets decreased to approximately 5.32 million US$ thousands from a prior peak of about 5.96 million US$ thousands in September 2018. However, after this dip, assets resumed their upward trajectory, culminating at about 8.5 million US$ thousands by the end of December 2021, indicating a strong asset growth over the period analyzed.
- Debt to Assets Ratio
- The debt to assets ratio initially fluctuated between 0.18 and 0.21 from March 2017 through mid-2018, reflecting a moderate leverage level. A marked decline occurred by December 31, 2018, when the ratio dropped sharply to 0.11 and continued decreasing steadily thereafter. By the end of 2021, the ratio reached a low of 0.07, indicating a significant reduction in leverage relative to asset size. This decline suggests an improvement in the company's financial structure, with lower debt burden when compared to its asset base across the period.
Debt to Assets (including Operating Lease Liability)
Edwards Lifesciences Corp., debt to assets (including operating lease liability) calculation (quarterly data)
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
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Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
Short-term debt | ||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||
Total debt | ||||||||||||||||||||||||||
Operating lease liabilities, current portion | ||||||||||||||||||||||||||
Operating lease liabilities, long-term portion | ||||||||||||||||||||||||||
Total debt (including operating lease liability) | ||||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to assets (including operating lease liability)1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
CVS Health Corp. |
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt level exhibits variability over the analyzed periods. Initially, the debt increased from 847,900 thousand US dollars in March 2017 to a peak of approximately 1,193,500 thousand US dollars by September 2018. Subsequently, a significant decline was observed in December 2018, with total debt dropping to 593,800 thousand US dollars. Following this decrease, total debt remained relatively stable, fluctuating moderately between approximately 668,200 and 694,900 thousand US dollars through the end of 2021, with a slight upward trend toward the final periods.
- Total Assets
- Total assets demonstrated a consistent upward trend throughout the examined quarters. Starting at 4,780,400 thousand US dollars in March 2017, asset values increased steadily with some minor fluctuations, reaching 8,502,600 thousand US dollars by December 2021. Notably, there was a dip observed at the end of 2018 with assets decreasing to 5,323,700 thousand US dollars, but this was followed by a resumption of growth thereafter.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio shows a decreasing trend over the studied period. Initially, the ratio rose from 0.18 in March 2017 to a high of 0.21 in June 2018. Thereafter, a marked decrease occurred, reaching 0.11 or below from December 2018 onward and progressively declining further to 0.08 by the end of 2021. This trend reflects an improvement in the company’s leverage position relative to its asset base.
- Summary of Trends and Insights
- Over the analyzed quarters, the data reveals a notable deleveraging phase commencing around late 2018. Total debt saw a significant reduction while total assets continued to grow, enhancing the asset base substantially. Consequently, the debt to assets ratio improved markedly, indicating a strengthening balance sheet with lower relative debt risk. The stability of debt levels post-2018, combined with steady asset growth, suggests a strategic focus on maintaining conservative leverage while expanding asset holdings.
Financial Leverage
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UnitedHealth Group Inc. |
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends across multiple periods, focusing on total assets, stockholders’ equity, and financial leverage ratios.
- Total Assets
- Total assets exhibited a general upward trend over the observed quarters. Starting at approximately $4.78 billion at the end of Q1 2017, total assets grew steadily to reach around $8.50 billion by Q4 2021. While there was a moderate decline between Q3 2018 and Q4 2018, representing a drop from about $5.96 billion to $5.32 billion, the asset base rebounded robustly afterward. The most significant asset growth phases occurred between 2019 and 2021, indicating an expansion in the company’s asset base during the latter periods.
- Stockholders’ Equity
- Stockholders’ equity followed an overall ascending pattern, increasing from approximately $2.74 billion in Q1 2017 to nearly $5.84 billion by Q4 2021. Despite some fluctuations, including a decline in Q4 2017 and again in mid-2020, the equity base showed consistent growth over the long term. The increments in stockholders’ equity from 2018 to 2021 were particularly notable, including an increase from about $3.14 billion in Q4 2018 to $5.84 billion by the end of 2021, signifying ongoing strengthening of the company’s capital structure.
- Financial Leverage Ratio
- The financial leverage ratio, representing the proportion of total assets financed by equity versus liabilities, showed a decreasing trend from 1.74 in Q1 2017 to 1.46 in Q4 2021. The ratio peaked at 1.93 in Q4 2017, indicating relatively higher leverage at that point, but generally diminished thereafter, suggesting a gradual reduction in reliance on debt or liabilities relative to equity. This decline in financial leverage implies an increasingly conservative financing approach or improved equity levels compared to assets over time.
In summary, the company experienced substantial growth in both total assets and stockholders’ equity over the analyzed periods, with the financial leverage ratio declining steadily. The data portrays enhanced capitalization and a modest reduction in leverage, which may contribute to a stronger financial position and potentially lower financial risk.