Fidelity National Information Services Inc. (NYSE:FIS)

Debt to Equity

The debt to equity ratio demonstrated a declining trend from 0.88 in 2018 to 0.41 in 2019 and remained stable at 0.41 in 2020. It slightly increased to 0.43 in 2021 before rising further to 0.74 in 2022. When including operating lease liabilities, the trend closely mirrors the standard debt to equity ratio, with a slight increase in 2022.

Debt to Capital

Debt to capital declined significantly from 0.47 in 2018 to 0.29 in 2019, maintaining this level through 2020. There was a minimal increase to 0.30 in 2021, followed by a notable rise to 0.43 in 2022. Including operating lease liabilities does not materially affect the observed pattern.

Debt to Assets

The debt to assets ratio decreased steadily from 0.38 in 2018 to 0.24 in 2019, remaining unchanged in 2020. It slightly increased to 0.25 in 2021 and continued its upward trend to 0.32 in 2022. The inclusion of operating lease liabilities yields nearly identical values.

Financial Leverage

Financial leverage exhibited a downward trend from 2.33 in 2018 to 1.70 in 2019 and remained steady through 2020 at 1.70. It increased marginally to 1.75 in 2021 before significantly rising back to 2.32 in 2022, suggesting a return to higher leverage levels similar to 2018.

Interest Coverage

Interest coverage fell sharply from 4.47 in 2018 to 2.04 in 2019, and decreased further to 1.77 in 2020. The ratio rebounded strongly to 4.68 in 2021. However, in 2022, it plummeted to a large negative value (-53.44), indicating severe difficulties in meeting interest obligations during that year.

Fixed Charge Coverage

Fixed charge coverage mirrored the trend in interest coverage, decreasing from 3.36 in 2018 to 1.75 in 2019 and further down to 1.47 in 2020. It improved to 3.12 in 2021 but significantly deteriorated to -32.33 in 2022, reflecting a substantial weakening in the company's ability to cover fixed financial charges in the latest period.

Total Debt

The total debt exhibited a significant increase from 2018 to 2019, rising sharply from $8,985 million to $20,192 million. Following this substantial increase, the debt level remained relatively stable over the subsequent years, with minor fluctuations: a slight decrease to $20,015 million in 2020, a small increase to $20,353 million in 2021, and a slight decline to $20,137 million in 2022.

Total FIS Stockholders’ Equity

Stockholders’ equity showed a dramatic surge between 2018 and 2019, increasing from $10,215 million to $49,440 million. This peak was maintained into 2020, with a negligible decrease to $49,300 million. However, equity began to decline thereafter, dropping to $47,347 million in 2021, followed by a more pronounced decrease to $27,218 million in 2022.

Debt to Equity Ratio

The debt to equity ratio declined markedly from 0.88 in 2018 to 0.41 in 2019 and remained steady at 0.41 in 2020. In 2021, it slightly increased to 0.43, before rising more significantly to 0.74 in 2022.

Overall Analysis

The data reveal a major restructuring or capital event between 2018 and 2019, evidenced by a sharp increase in both total debt and stockholders’ equity. Post-2019, total debt stabilized at a high level while equity began to erode starting in 2021. Consequently, the debt to equity ratio decreased substantially initially due to growth in equity but trended upward from 2021 onwards as equity declined and debt remained relatively constant. This pattern suggests increased leverage risk developing in the most recent year, potentially reflecting financial stress or strategic shifts impacting equity value.

The financial data reveals notable shifts in the company's capital structure over the five-year period examined. Analysis of total debt, stockholders' equity, and their relative proportions provides insight into the company's leverage and equity position dynamics.

Total Debt

The total debt, including operating lease liabilities, exhibited a significant increase from 2018 to 2019, more than doubling from approximately $8.99 billion to about $20.79 billion. Following this sharp rise, the debt level remained fairly stable, hovering around $20.5 billion to $20.9 billion through 2020 to 2022, indicating a substantial increase maintained over these years.

Total Stockholders’ Equity

Stockholders’ equity experienced a dramatic increase between 2018 and 2019, rising from approximately $10.2 billion to nearly $49.4 billion. However, from 2019 onward, equity showed a gradual decline each year, decreasing to about $27.2 billion by the end of 2022. This decline signals a contraction in equity after the substantial boost in 2019.

Debt to Equity Ratio

The debt to equity ratio sharply decreased from 0.88 in 2018 to approximately 0.42 in 2019 and 2020, reflecting the substantial growth in equity relative to debt. It increased slightly to 0.44 in 2021, then rose more notably to 0.76 in 2022. This upward trend in the ratio during the later years indicates increasing leverage, driven primarily by the decline in equity while debt levels remained stable.

In summary, the company initially strengthened its equity base significantly in 2019, which led to a more conservative leverage profile. Since then, a gradual decline in equity alongside steady debt levels has resulted in rising leverage, suggesting a shift toward increased financial risk as the equity cushion diminishes. The initial jump in debt coinciding with the surge in equity could indicate capital raising activities or acquisitions made around 2019, but the subsequent trends require attention toward sustaining equity levels in relation to the existing debt burden.

The financial data presents annual figures related to total debt, total capital, and the debt to capital ratio over a five-year period ending in 2022.

Total Debt

The total debt increased significantly from 2018 to 2019, rising from approximately 8.99 billion US dollars to just over 20.1 billion US dollars. Subsequently, total debt remained relatively stable through to 2022, fluctuating slightly around the 20 billion US dollar mark.

Total Capital

Total capital showed an initial sharp increase from 19.2 billion US dollars in 2018 to nearly 69.6 billion US dollars in 2019. After 2019, it maintained a relatively stable level, slightly decreasing each year until 2021. In 2022, total capital decreased more noticeably to approximately 47.4 billion US dollars.

Debt to Capital Ratio

The debt to capital ratio decreased markedly from 0.47 in 2018 to 0.29 in 2019, reflecting the faster growth of capital relative to debt. This ratio remained fairly stable around 0.29 to 0.30 through 2020 and 2021, but exhibited a notable increase to 0.43 in 2022, indicating a renewed rise in leverage relative to capital.

Overall, the data reveals a pronounced increase in both total debt and total capital between 2018 and 2019, resulting in a significant reduction in leverage as measured by the debt to capital ratio. From 2019 onwards, total debt remained relatively stable, while total capital gradually declined, particularly in 2022. This decline in capital without a corresponding reduction in debt caused the debt to capital ratio to increase in the last reported year, suggesting higher financial leverage and potential shifts in financing strategy or capital structure.

Total Debt (including operating lease liability)

The total debt exhibits a significant increase from 2018 to 2019, rising sharply from approximately $8.99 billion to $20.79 billion. Following this peak in 2019, the debt level remains relatively stable over the subsequent years: it slightly decreased to $20.62 billion in 2020, then modestly increased to $20.88 billion in 2021, and marginally declined again to $20.55 billion in 2022. This trend indicates that the company significantly increased leverage in 2019 and maintained a relatively consistent debt level thereafter.

Total Capital (including operating lease liability)

Total capital shows an exceptional surge from 2018 to 2019, moving from approximately $19.2 billion to $70.23 billion. After 2019, total capital remains broadly stable in 2020 and 2021, with slight decreases to about $69.92 billion and $68.22 billion respectively. However, there is a marked reduction in 2022, bringing total capital down to $47.77 billion. This suggests a contraction or restructuring in capital base in the latest year after a period of very high capital levels in the prior years.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio declines substantially from 0.47 in 2018 to 0.30 in 2019, and then remains fairly stable around 0.29 to 0.31 during 2020 and 2021. However, in 2022, this ratio increases noticeably to 0.43. This pattern reflects an initial deleveraging move in 2019, where capital grew disproportionately relative to debt, followed by a return toward higher leverage in 2022 as total capital contracted substantially while debt was maintained close to previous levels.

Summary of Key Trends

The data reveal a period of major capital expansion in 2019 with the company significantly increasing total capital alongside a large increase in total debt. Subsequent years show a stable debt level with a slight downward trend in total capital until a sharp decline in 2022. The resulting effect is a debt to capital ratio that initially improved (indicating reduced leverage) but then experienced a reversal in 2022, pointing to increased leverage and potentially greater financial risk. These shifts may reflect strategic financial adjustments, possibly related to acquisitions, divestitures, or other capital structure decisions in recent years.

Total Debt

The total debt experienced a substantial increase from 8,985 million US dollars in 2018 to 20,192 million US dollars in 2019. Following this sharp rise, the total debt remained relatively stable over the subsequent years, with minor fluctuations: 20,015 million in 2020, 20,353 million in 2021, and 20,137 million in 2022.

Total Assets

Total assets showed a dramatic increase from 23,770 million US dollars in 2018 to above 83,800 million in 2019 and 2020, maintaining a similar level in 2021 at roughly 82,931 million. However, in 2022, total assets decreased significantly to 63,278 million US dollars, indicating a downward adjustment after several years of stability at elevated levels.

Debt to Assets Ratio

The debt to assets ratio declined notably from 0.38 in 2018 to 0.24 by 2019, reflecting a stronger asset base relative to debt. This ratio remained stable through 2020 and 2021 at approximately 0.24-0.25, but increased again to 0.32 in 2022. The rise in 2022 suggests that the reduction in total assets was not accompanied by a corresponding reduction in debt, thereby increasing leverage levels.

Total Debt (Including Operating Lease Liability)

The total debt experienced a significant increase from 2018 to 2019, jumping from $8,985 million to $20,787 million. After this sharp rise, the debt levels remained relatively stable over the next three years, fluctuating slightly around the $20,500 million to $20,877 million range through to 2022.

Total Assets

Total assets rose dramatically from $23,770 million in 2018 to $83,806 million in 2019, maintaining a generally stable level through 2020 and 2021 at approximately $83,800 million and $82,931 million respectively. However, there was a notable decline in 2022, when total assets fell to $63,278 million, indicating a significant reduction in the company’s asset base in the most recent year.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio decreased markedly from 0.38 in 2018 to 0.25 in 2019, reflecting a substantial increase in assets relative to debt. This ratio remained stable at 0.25 through 2020 and 2021, signifying maintained leverage levels despite stable debt and asset figures. In 2022, the ratio increased to 0.32, correlating with the decline in assets while debt remained steady, suggesting an elevated leverage position.

Overall Analysis

The financial data indicate that a major shift occurred between 2018 and 2019, marked by a considerable increase in both debt and assets, with assets growing proportionally more, resulting in a lower leverage ratio. Stability characterized the middle years, but the decline in assets in 2022 without a corresponding reduction in debt led to an increased leverage ratio, potentially indicating higher financial risk or a strategic change in capital structure or asset composition.

Total assets

The total assets exhibited a substantial increase from US$23,770 million at the end of 2018 to approximately US$83,800 million by the end of 2019, maintaining a similar level through 2020 and 2021 with figures around US$83,800 million and US$82,900 million, respectively. However, in 2022, total assets decreased significantly to about US$63,300 million. This indicates a period of rapid growth followed by a marked contraction in asset base in the most recent year.

Total stockholders’ equity

Stockholders' equity rose markedly from US$10,215 million in 2018 to nearly US$49,400 million in 2019, remaining relatively stable in 2020 at US$49,300 million and exhibiting a slight decline to US$47,350 million in 2021. In 2022, equity fell sharply to US$27,218 million. Similar to total assets, equity experienced strong growth initially, sustained through 2020, before declining substantially in 2022.

Financial leverage

The financial leverage ratio decreased from 2.33 in 2018 to 1.7 in 2019 and remained at that level in 2020. It slightly increased to 1.75 in 2021 before rising further to 2.32 in 2022. This pattern shows an initial reduction in leverage, indicating lower reliance on debt or liabilities relative to equity during the period of asset growth, followed by increased leverage in 2022, which may reflect heightened borrowing or reduced equity relative to assets.

EBIT Trend

The earnings before interest and tax (EBIT) show a declining trend from 2018 to 2020, decreasing from 1,403 million USD to 599 million USD. In 2021, there is a partial recovery with EBIT increasing to 1,011 million USD. However, a significant negative shift occurs in 2022, with EBIT dropping sharply to -16,031 million USD, indicating a substantial loss before interest and taxes.

Interest Expense Trend

Interest expense increased from 314 million USD in 2018 to a peak of 389 million USD in 2019, then declined to 339 million USD in 2020 and further down to 216 million USD in 2021. In 2022, the interest expense rises again to 300 million USD, reflecting some volatility but remaining within a moderate range compared to the EBIT values.

Interest Coverage Ratio

The interest coverage ratio has shown considerable fluctuations over the years. It declined from 4.47 in 2018 to 1.77 in 2020, suggesting decreased ability to cover interest expenses from EBIT. A recovery is observed in 2021 with a ratio of 4.68, indicating improved coverage. However, in 2022, the ratio plunges dramatically to -53.44, reflecting the negative EBIT and indicating an extreme inability to meet interest obligations from earnings before interest and taxes.

Overall Insights

The data indicates a period of weakening profitability leading up to 2020, a brief rebound in 2021, and a severe deterioration in 2022. The substantial negative EBIT in 2022 suggests extraordinary challenges or impairments affecting operating performance. Despite relatively stable interest expenses, the sharp decline in EBIT drastically worsens the interest coverage ratio, signaling increased financial risk and potential concerns regarding debt servicing capacity.

Earnings before fixed charges and tax

The earnings before fixed charges and tax demonstrate notable fluctuations over the analyzed periods. Beginning at $1,550 million in 2018, the figure declined significantly to $937 million in 2019, followed by a further decrease to $809 million in 2020. In 2021, there was a recovery with earnings rising to $1,170 million. However, a drastic reversal occurred in 2022, with the figure plunging to a substantial negative value of -$15,841 million, indicating a major financial setback or extraordinary loss in that year.

Fixed charges

Fixed charges showed more stability compared to earnings before fixed charges and tax. Starting at $461 million in 2018, fixed charges increased slightly to $534 million in 2019 and $549 million in 2020. In 2021, they decreased significantly to $375 million but rose again to $490 million in 2022. Overall, these charges have remained within a relatively moderate range without extreme volatility.

Fixed charge coverage ratio

The fixed charge coverage ratio, which measures the ability to cover fixed charges with earnings, exhibits a variable trend consistent with the earnings fluctuations. It started at a solid 3.36 in 2018, declined sharply through 2019 (1.75) and 2020 (1.47), before rebounding to 3.12 in 2021. In 2022, the ratio plummeted dramatically to -32.33, driven by the severe negative earnings before fixed charges and tax. This negative ratio suggests a significant inability to cover fixed charges that year, highlighting a critical financial distress.