Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Newmont Corp. (NYSE:NEM)

Analysis of Solvency Ratios

Beginner level


Solvency Ratios (Summary)

Newmont Corp., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Debt Ratios
Debt to equity 0.32 0.41 0.38 0.43 0.55
Debt to equity (including operating lease liability) 0.32 0.41 0.38 0.43 0.55
Debt to capital 0.24 0.29 0.28 0.30 0.35
Debt to capital (including operating lease liability) 0.24 0.29 0.28 0.30 0.35
Debt to assets 0.17 0.21 0.20 0.22 0.25
Debt to assets (including operating lease liability) 0.17 0.21 0.20 0.22 0.25
Financial leverage 1.87 1.97 1.94 1.96 2.22
Coverage Ratios
Interest coverage 13.58 4.41 5.46 0.17 3.83
Fixed charge coverage 12.73 3.73 4.79 0.28 3.49

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Newmont Corp.’s debt to equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Newmont Corp.’s debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Newmont Corp.’s debt to capital ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
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. Newmont Corp.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Newmont Corp.’s debt to assets ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Newmont Corp.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Newmont Corp.’s financial leverage ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Newmont Corp.’s interest coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Newmont Corp.’s fixed charge coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Debt to Equity

Newmont Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Current lease and other financing obligations 100  27  —  — 
Current debt —  626  —  566  149 
Non-current debt 6,138  3,418  4,040  4,049  6,087 
Non-current lease and other financing obligations 596  190  21  —  — 
Total debt 6,834  4,261  4,065  4,615  6,236 
 
Total Newmont stockholders’ equity 21,420  10,502  10,609  10,721  11,350 
Solvency Ratio
Debt to equity1 0.32 0.41 0.38 0.43 0.55
Benchmarks
Debt to Equity, Industry
Basic Materials 0.34 0.38 0.71 0.91 0.93

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

1 2019 Calculation
Debt to equity = Total debt ÷ Total Newmont stockholders’ equity
= 6,834 ÷ 21,420 = 0.32

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Newmont Corp.’s debt to equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Debt to Equity (including Operating Lease Liability)

Newmont Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Current lease and other financing obligations 100  27  —  — 
Current debt —  626  —  566  149 
Non-current debt 6,138  3,418  4,040  4,049  6,087 
Non-current lease and other financing obligations 596  190  21  —  — 
Total debt 6,834  4,261  4,065  4,615  6,236 
Current operating leases 28  —  —  —  — 
Non-current operating leases 47  —  —  —  — 
Total debt (including operating lease liability) 6,909  4,261  4,065  4,615  6,236 
 
Total Newmont stockholders’ equity 21,420  10,502  10,609  10,721  11,350 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.32 0.41 0.38 0.43 0.55
Benchmarks
Debt to Equity (including Operating Lease Liability), Industry
Basic Materials 0.36 0.38 0.71 0.91 0.93

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Newmont stockholders’ equity
= 6,909 ÷ 21,420 = 0.32

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. Newmont Corp.’s debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Debt to Capital

Newmont Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Current lease and other financing obligations 100  27  —  — 
Current debt —  626  —  566  149 
Non-current debt 6,138  3,418  4,040  4,049  6,087 
Non-current lease and other financing obligations 596  190  21  —  — 
Total debt 6,834  4,261  4,065  4,615  6,236 
Total Newmont stockholders’ equity 21,420  10,502  10,609  10,721  11,350 
Total capital 28,254  14,763  14,674  15,336  17,586 
Solvency Ratio
Debt to capital1 0.24 0.29 0.28 0.30 0.35
Benchmarks
Debt to Capital, Industry
Basic Materials 0.25 0.27 0.41 0.48 0.48

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,834 ÷ 28,254 = 0.24

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Newmont Corp.’s debt to capital ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Debt to Capital (including Operating Lease Liability)

Newmont Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Current lease and other financing obligations 100  27  —  — 
Current debt —  626  —  566  149 
Non-current debt 6,138  3,418  4,040  4,049  6,087 
Non-current lease and other financing obligations 596  190  21  —  — 
Total debt 6,834  4,261  4,065  4,615  6,236 
Current operating leases 28  —  —  —  — 
Non-current operating leases 47  —  —  —  — 
Total debt (including operating lease liability) 6,909  4,261  4,065  4,615  6,236 
Total Newmont stockholders’ equity 21,420  10,502  10,609  10,721  11,350 
Total capital (including operating lease liability) 28,329  14,763  14,674  15,336  17,586 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.24 0.29 0.28 0.30 0.35
Benchmarks
Debt to Capital (including Operating Lease Liability), Industry
Basic Materials 0.26 0.27 0.41 0.48 0.48

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

1 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 6,909 ÷ 28,329 = 0.24

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. Newmont Corp.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Debt to Assets

Newmont Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Current lease and other financing obligations 100  27  —  — 
Current debt —  626  —  566  149 
Non-current debt 6,138  3,418  4,040  4,049  6,087 
Non-current lease and other financing obligations 596  190  21  —  — 
Total debt 6,834  4,261  4,065  4,615  6,236 
 
Total assets 39,974  20,715  20,563  21,031  25,182 
Solvency Ratio
Debt to assets1 0.17 0.21 0.20 0.22 0.25
Benchmarks
Debt to Assets, Industry
Basic Materials 0.18 0.20 0.31 0.35 0.35

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,834 ÷ 39,974 = 0.17

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Newmont Corp.’s debt to assets ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Debt to Assets (including Operating Lease Liability)

Newmont Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Current lease and other financing obligations 100  27  —  — 
Current debt —  626  —  566  149 
Non-current debt 6,138  3,418  4,040  4,049  6,087 
Non-current lease and other financing obligations 596  190  21  —  — 
Total debt 6,834  4,261  4,065  4,615  6,236 
Current operating leases 28  —  —  —  — 
Non-current operating leases 47  —  —  —  — 
Total debt (including operating lease liability) 6,909  4,261  4,065  4,615  6,236 
 
Total assets 39,974  20,715  20,563  21,031  25,182 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.17 0.21 0.20 0.22 0.25
Benchmarks
Debt to Assets (including Operating Lease Liability), Industry
Basic Materials 0.19 0.20 0.31 0.35 0.35

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

1 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 6,909 ÷ 39,974 = 0.17

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. Newmont Corp.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Financial Leverage

Newmont Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Total assets 39,974  20,715  20,563  21,031  25,182 
Total Newmont stockholders’ equity 21,420  10,502  10,609  10,721  11,350 
Solvency Ratio
Financial leverage1 1.87 1.97 1.94 1.96 2.22
Benchmarks
Financial Leverage, Industry
Basic Materials 1.84 1.89 2.31 2.58 2.66

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

1 2019 Calculation
Financial leverage = Total assets ÷ Total Newmont stockholders’ equity
= 39,974 ÷ 21,420 = 1.87

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Newmont Corp.’s financial leverage ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Interest Coverage

Newmont Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Newmont stockholders 2,805  341  (98) (627) 220 
Add: Net income attributable to noncontrolling interest 79  39  11  (296) 84 
Less: Net income (loss) from discontinued operations (72) 61  (38) (133) 27 
Add: Income tax expense 832  386  1,125  563  644 
Add: Interest expense, net of capitalized interest 301  207  241  273  325 
Earnings before interest and tax (EBIT) 4,089  912  1,317  46  1,246 
Solvency Ratio
Interest coverage1 13.58 4.41 5.46 0.17 3.83
Benchmarks
Interest Coverage, Industry
Basic Materials 14.72 12.24 8.86 7.53 8.32

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,089 ÷ 301 = 13.58

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Newmont Corp.’s interest coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Fixed Charge Coverage

Newmont Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Newmont stockholders 2,805  341  (98) (627) 220 
Add: Net income attributable to noncontrolling interest 79  39  11  (296) 84 
Less: Net income (loss) from discontinued operations (72) 61  (38) (133) 27 
Add: Income tax expense 832  386  1,125  563  644 
Add: Interest expense, net of capitalized interest 301  207  241  273  325 
Earnings before interest and tax (EBIT) 4,089  912  1,317  46  1,246 
Add: Operating lease cost 22  51  43  43  45 
Earnings before fixed charges and tax 4,111  963  1,360  89  1,291 
 
Interest expense, net of capitalized interest 301  207  241  273  325 
Operating lease cost 22  51  43  43  45 
Fixed charges 323  258  284  316  370 
Solvency Ratio
Fixed charge coverage1 12.73 3.73 4.79 0.28 3.49
Benchmarks
Fixed Charge Coverage, Industry
Basic Materials 8.37 7.91 5.95 5.18 5.59

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,111 ÷ 323 = 12.73

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Newmont Corp.’s fixed charge coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.