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)
Royal Dutch Shell PLC, solvency ratios
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Royal Dutch Shell PLC debt to equity ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Royal Dutch Shell PLC debt to capital ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Royal Dutch Shell PLC debt to assets ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Royal Dutch Shell PLC financial leverage ratio increased from 2012 to 2013 and from 2013 to 2014. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Royal Dutch Shell PLC interest coverage ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
Debt to Equity
Royal Dutch Shell PLC, debt to equity calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Non-current debt | 38,332) | 36,218) | 29,921) | 30,463) | 34,381) | |
| Current debt | 7,208) | 8,344) | 7,833) | 6,712) | 9,951) | |
| Total debt | 45,540) | 44,562) | 37,754) | 37,175) | 44,332) | |
| Equity attributable to Royal Dutch Shell plc shareholders | 171,966) | 180,047) | 188,494) | 169,517) | 148,013) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.26 | 0.25 | 0.20 | 0.22 | 0.30 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Debt to equity = Total debt ÷ Equity attributable to Royal Dutch Shell plc shareholders
= 45,540 ÷ 171,966 = 0.26
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. | Royal Dutch Shell PLC debt to equity ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
Debt to Capital
Royal Dutch Shell PLC, debt to capital calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Non-current debt | 38,332) | 36,218) | 29,921) | 30,463) | 34,381) | |
| Current debt | 7,208) | 8,344) | 7,833) | 6,712) | 9,951) | |
| Total debt | 45,540) | 44,562) | 37,754) | 37,175) | 44,332) | |
| Equity attributable to Royal Dutch Shell plc shareholders | 171,966) | 180,047) | 188,494) | 169,517) | 148,013) | |
| Total capital | 217,506) | 224,609) | 226,248) | 206,692) | 192,345) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.21 | 0.20 | 0.17 | 0.18 | 0.23 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Debt to capital = Total debt ÷ Total capital
= 45,540 ÷ 217,506 = 0.21
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. | Royal Dutch Shell PLC debt to capital ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
Debt to Assets
Royal Dutch Shell PLC, debt to assets calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Non-current debt | 38,332) | 36,218) | 29,921) | 30,463) | 34,381) | |
| Current debt | 7,208) | 8,344) | 7,833) | 6,712) | 9,951) | |
| Total debt | 45,540) | 44,562) | 37,754) | 37,175) | 44,332) | |
| Total assets | 353,116) | 357,512) | 360,325) | 345,257) | 322,560) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.13 | 0.12 | 0.10 | 0.11 | 0.14 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Debt to assets = Total debt ÷ Total assets
= 45,540 ÷ 353,116 = 0.13
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. | Royal Dutch Shell PLC debt to assets ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
Financial Leverage
Royal Dutch Shell PLC, financial leverage calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 353,116) | 357,512) | 360,325) | 345,257) | 322,560) | |
| Equity attributable to Royal Dutch Shell plc shareholders | 171,966) | 180,047) | 188,494) | 169,517) | 148,013) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.05 | 1.99 | 1.91 | 2.04 | 2.18 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Financial leverage = Total assets ÷ Equity attributable to Royal Dutch Shell plc shareholders
= 353,116 ÷ 171,966 = 2.05
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. | Royal Dutch Shell PLC financial leverage ratio increased from 2012 to 2013 and from 2013 to 2014. |
Interest Coverage
Royal Dutch Shell PLC, interest coverage calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Income attributable to Royal Dutch Shell plc shareholders | 14,874) | 16,371) | 26,592) | 30,918) | 20,127) | |
| Add: Net income attributable to noncontrolling interest | (144) | 155) | 248) | 267) | 347) | |
| Add: Income tax expense | 13,584) | 17,066) | 23,449) | 24,475) | 14,870) | |
| Add: Interest expense, excluding accretion expense | 765) | 650) | 894) | 535) | 249) | |
| Earnings before interest and tax (EBIT) | 29,079) | 34,242) | 51,183) | 56,195) | 35,593) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 38.01 | 52.68 | 57.25 | 105.04 | 142.94 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Interest coverage = EBIT ÷ Interest expense
= 29,079 ÷ 765 = 38.01
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. | Royal Dutch Shell PLC interest coverage ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |