Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Analysis of Liquidity Ratios
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- Enterprise Value to EBITDA (EV/EBITDA)
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- Selected Financial Data since 2013
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Solvency Ratios (Summary)
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 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
- The debt to equity ratio remained relatively stable from March 2017 through December 2017, fluctuating slightly around 0.36 to 0.37. Beginning in 2018, the ratio showed some increase and variation, with a peak around mid-2018 at approximately 0.48. Throughout 2019 and 2020, the ratio hovered between 0.22 and 0.45, indicating some volatility but no dramatic changes. In 2021, the ratio increased significantly, reaching highs close to 0.67 before slightly declining but remaining elevated around 0.59 to 0.58. By mid-2022, the ratio rose further to approximately 0.89, indicating a notable upward trend in leveraging relative to equity.
- Debt to equity (including operating lease liability)
- This ratio closely follows the trend of the traditional debt to equity ratio but at slightly higher levels due to the inclusion of operating lease liabilities. From 2017 to early 2018, the ratio was steady around 0.35 to 0.48. From 2019 onwards, the ratio displayed a rising trend with some volatility, rising from approximately 0.30 to peaks over 1.10 in mid-2022. This indicates increasing reliance on lease obligations as part of total debt relative to equity.
- Debt to capital
- The debt to capital ratio showed minor fluctuations from March 2017 to the end of 2018, mostly ranging between 0.26 and 0.33. In 2019 and 2020, the ratio dipped to lows near 0.18 but then returned to approximately 0.31. A marked increase was observed in 2021, reaching near 0.40, and continued to trend upward into mid-2022, reaching approximately 0.47. This pattern reflects a gradual increase in the proportion of debt in total capital structure over time.
- Debt to capital (including operating lease liability)
- Including operating lease liabilities, the debt to capital ratio followed a similar trajectory as the conventional measure but was consistently higher. After a stable period at around 0.26 to 0.33 until 2018, the ratio increased steadily through 2021 and into 2022, reaching approximately 0.53. The inclusion of lease liabilities notably elevates the apparent leverage level within the capital base.
- Debt to assets
- The debt to assets ratio was fairly constant from 2017 to 2018, generally around 0.24 to 0.30. During 2019, the ratio decreased considerably reaching a low of 0.16 but then rebounded in 2020 to about 0.26. From 2021 onwards, the ratio increased again, reaching approximately 0.35 before slightly declining and then rising to 0.39 by mid-2022. This suggests an overall increase in asset-financed leverage over the observed periods.
- Debt to assets (including operating lease liability)
- This ratio mirrored the trend of debt to assets without leases but with consistently higher values. Starting near 0.25 in 2017, it rose steadily after 2018, reaching around 0.49 by mid-2022. The inclusion of lease liabilities indicates a growing proportion of assets financed through debt and lease obligations.
- Financial leverage
- Financial leverage remained stable around 1.47 from 2017 through 2018. From 2019, a gradual increase was observed, with the ratio rising to about 1.68 by the end of 2020. In 2021, the ratio increased sharply, peaking slightly above 2.0. By mid-2022, financial leverage reached approximately 2.29, indicating increased use of debt relative to equity in the capital structure.
- Interest coverage
- Data for interest coverage is incomplete for early years but shows a significant improvement from near zero in late 2017 to values above 4.0 through 2018 and most of 2019, implying sufficient operational earnings to cover interest expenses. During 2020, interest coverage decreased markedly, dropping to near zero and even becoming negative in parts of 2021, indicating periods when earnings were insufficient to cover interest costs. Notably, large negative values occurred in mid-2021 (-3.62 and -7.03), followed by a rebound to 7.88 in late 2021, evidencing high volatility in earnings relative to interest obligations. Mid-2022 shows a sharp decline again to near 0.21.
Debt Ratios
Coverage Ratios
Debt to Equity
Jun 30, 2022 | Mar 31, 2022 | 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) | |||||||||||||||||||||||||||||
Convertible notes, short-term | |||||||||||||||||||||||||||||
Finance lease liabilities, short-term | |||||||||||||||||||||||||||||
Convertible notes, long-term | |||||||||||||||||||||||||||||
Senior notes, long-term | |||||||||||||||||||||||||||||
Finance lease liabilities, long-term | |||||||||||||||||||||||||||||
Total debt | |||||||||||||||||||||||||||||
Stockholders’ equity | |||||||||||||||||||||||||||||
Solvency Ratio | |||||||||||||||||||||||||||||
Debt to equity1 | |||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||
Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
Alphabet Inc. | |||||||||||||||||||||||||||||
Comcast Corp. | |||||||||||||||||||||||||||||
Meta Platforms Inc. | |||||||||||||||||||||||||||||
Netflix Inc. | |||||||||||||||||||||||||||||
Take-Two Interactive Software Inc. | |||||||||||||||||||||||||||||
Walt Disney Co. |
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 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 Q2 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analyzed data reveals noticeable trends in the financial leverage and capital structure over the observed quarters. Total debt shows a consistent upward trajectory overall, starting at approximately 1.72 billion US dollars and increasing to about 5.25 billion US dollars by the second quarter of 2022. This increase, however, was not without fluctuations; notably, there was a reduction in total debt around the third quarter of 2019, followed by a subsequent rise again in the following periods.
Stockholders’ equity experienced a general growth trend from roughly 4.69 billion US dollars initially to a peak close to 8.7 billion US dollars by the end of 2019. Thereafter, a decline is observed from early 2020 through mid-2022, ending around 5.93 billion US dollars. This decline reflects a substantive contraction in equity over that later period after a phase of expansion.
The debt-to-equity ratio provides key insight into changes in financial leverage. Initially stable near 0.37, the ratio exhibited some volatility corresponding with changes in the debt and equity amounts. A marked increase occurred from 2020 onwards, moving from approximately 0.39 to a high near 0.89 by mid-2022. This rising ratio indicates greater reliance on debt financing relative to equity, possibly reflecting increased financial risk or strategic leveraging decisions over the latter periods.
- Total Debt
- Increased overall with intermittent decreases, indicating periods of debt repayment or restructuring followed by increased borrowings.
- Stockholders’ Equity
- Grew steadily until late 2019, then declined fairly consistently through early 2022, signaling potential losses, share repurchases, or other equity-reducing events.
- Debt to Equity Ratio
- Rose notably post-2019, demonstrating a shift toward higher leverage and potentially increased financial risk exposure.
In summary, the company’s financial structure shifted towards higher leverage, with increasing total debt and decreasing equity in the most recent periods. This could suggest strategic borrowing, changes in profitability, or capital management decisions impacting the balance between debt and equity financing.
Debt to Equity (including Operating Lease Liability)
Jun 30, 2022 | Mar 31, 2022 | 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) | |||||||||||||||||||||||||||||
Convertible notes, short-term | |||||||||||||||||||||||||||||
Finance lease liabilities, short-term | |||||||||||||||||||||||||||||
Convertible notes, long-term | |||||||||||||||||||||||||||||
Senior notes, long-term | |||||||||||||||||||||||||||||
Finance lease liabilities, long-term | |||||||||||||||||||||||||||||
Total debt | |||||||||||||||||||||||||||||
Operating lease liabilities, short-term | |||||||||||||||||||||||||||||
Operating lease liabilities, long-term | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Alphabet Inc. | |||||||||||||||||||||||||||||
Meta Platforms Inc. | |||||||||||||||||||||||||||||
Take-Two Interactive Software Inc. |
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 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 Q2 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in the company’s debt and equity structure over the observed periods.
- Total Debt (including operating lease liability)
-
The total debt generally shows an increasing trend from March 31, 2017, through June 30, 2022. Initial values near 1.7 billion US dollars gradually escalate, with some fluctuations, reaching approximately 6.7 billion US dollars by mid-2022.
Notable increments appeared during 2018 and 2021, with a significant rise from around 4.4 billion in the last quarter of 2020 to nearly 6.3 billion by the first quarter of 2021. Elevated debt levels are sustained through 2022, with values slightly above 6.7 billion.
- Stockholders’ Equity
-
Stockholders’ equity shows a steady growth trend from just under 4.7 billion US dollars in early 2017 up to a peak near 8.7 billion by the end of 2019. However, starting in 2020, equity values exhibit increased volatility and an overall downward trend.
Equity drops notably during 2020 and 2021, declining from approximately 8.8 billion at the end of 2019 to roughly 7.7 billion by mid-2021. The downward pressure continues through 2022, with equity falling further to around 5.9 billion by mid-2022.
- Debt to Equity Ratio (including operating lease liability)
-
This ratio starts relatively low and stable, around 0.36-0.37 from early 2017 to early 2018, indicating moderate leverage levels. It then increases during 2018, peaking just below 0.5, before retreating somewhat by the end of 2019.
From 2020 onward, the debt to equity ratio rises sharply, crossing 0.5 and moving steadily upward to over 1.1 by mid-2022. This marked increase reflects the combined effects of rising debt and declining equity observed across these periods, indicating elevated financial leverage and potentially higher financial risk.
In summary, the financial data indicates a period of aggressive debt accumulation paired with stagnation and decline in equity levels starting approximately in 2020. This results in a substantially increased debt to equity ratio, suggesting a significant leverage expansion that may affect the company’s financial stability and risk profile going forward.
Debt to Capital
Jun 30, 2022 | Mar 31, 2022 | 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) | |||||||||||||||||||||||||||||
Convertible notes, short-term | |||||||||||||||||||||||||||||
Finance lease liabilities, short-term | |||||||||||||||||||||||||||||
Convertible notes, long-term | |||||||||||||||||||||||||||||
Senior notes, long-term | |||||||||||||||||||||||||||||
Finance lease liabilities, long-term | |||||||||||||||||||||||||||||
Total debt | |||||||||||||||||||||||||||||
Stockholders’ equity | |||||||||||||||||||||||||||||
Total capital | |||||||||||||||||||||||||||||
Solvency Ratio | |||||||||||||||||||||||||||||
Debt to capital1 | |||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||
Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
Alphabet Inc. | |||||||||||||||||||||||||||||
Comcast Corp. | |||||||||||||||||||||||||||||
Meta Platforms Inc. | |||||||||||||||||||||||||||||
Netflix Inc. | |||||||||||||||||||||||||||||
Take-Two Interactive Software Inc. | |||||||||||||||||||||||||||||
Walt Disney Co. |
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 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 Q2 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals notable fluctuations in the company's debt profile and capital structure over the examined quarterly periods.
- Total Debt
- The total debt exhibits an overall increasing trend from the beginning to the end of the period under review. Initially, it rises moderately from approximately 1.72 billion US dollars at the end of March 2017 to about 2.73 billion US dollars by the end of March 2019. Following this, there is a significant decline in debt levels observed at the end of September 2019, dropping to around 1.83 billion US dollars. However, the debt then escalates substantially, reaching a peak of over 5.24 billion US dollars by the end of June 2022. This suggests periods of both deleveraging and increased borrowing, with a pronounced increase in debt during the later quarters.
- Total Capital
- Total capital also shows growth over the timeline but fluctuates more subtly compared to total debt. Starting at approximately 6.41 billion US dollars in March 2017, the capital increases steadily until reaching around 11.10 billion US dollars at the end of June 2019. A peak is noted again near 12.21 billion US dollars at the end of March 2020, followed by a brief dip in June 2020. Afterwards, capital levels rebound and peak at about 12.94 billion US dollars by the end of June 2021. In the last observed quarters, total capital trends slightly downward, finishing near 11.18 billion US dollars by the middle of 2022.
- Debt to Capital Ratio
- This ratio reflects the proportion of debt in the company's overall capital structure and reveals dynamic shifts throughout the period. Initially, it remains relatively stable, fluctuating around 0.26 to 0.27 through the early quarters up to March 2018. Subsequently, the ratio increases in mid-2018 to about 0.33 but then decreases to a low of around 0.18 by the end of September 2019, indicating a relative reduction in reliance on debt. From this low, the ratio rises again consistently, peaking at approximately 0.47 by mid-2022. This pattern indicates a growing dependence on debt financing relative to the company's capital base in recent quarters.
In summary, the data indicates periods of strategic shifts in financial leverage, with marked debt reduction around late 2019 followed by substantial increases through 2020 to 2022. Total capital has generally expanded but shows some volatility, and the debt-to-capital ratio trends highlight a cyclical pattern culminating in heightened leverage in the most recent periods analyzed.
Debt to Capital (including Operating Lease Liability)
Jun 30, 2022 | Mar 31, 2022 | 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) | |||||||||||||||||||||||||||||
Convertible notes, short-term | |||||||||||||||||||||||||||||
Finance lease liabilities, short-term | |||||||||||||||||||||||||||||
Convertible notes, long-term | |||||||||||||||||||||||||||||
Senior notes, long-term | |||||||||||||||||||||||||||||
Finance lease liabilities, long-term | |||||||||||||||||||||||||||||
Total debt | |||||||||||||||||||||||||||||
Operating lease liabilities, short-term | |||||||||||||||||||||||||||||
Operating lease liabilities, long-term | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Alphabet Inc. | |||||||||||||||||||||||||||||
Meta Platforms Inc. | |||||||||||||||||||||||||||||
Take-Two Interactive Software Inc. |
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 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 Q2 2022 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.
The data reveals notable fluctuations and trends in the company's debt structure and overall capital base over the observed quarters.
- Total Debt (including operating lease liability)
- From March 2017 to June 2022, total debt shows an overall upward trajectory, increasing from approximately 1.72 billion USD to about 6.72 billion USD. There are periods of gradual increases punctuated by sharp growth, notably from March 2018 onward, with a marked acceleration beginning around March 2021.
- Between the first quarter of 2017 and the first quarter of 2018, debt rose modestly by around 7%. However, starting mid-2018, the debt level increased considerably, reaching peaks above 6 billion USD by 2022. The quarterly variations reflect some volatility but the dominant pattern is substantial debt accumulation over the years.
- Total Capital (including operating lease liability)
- The total capital base also demonstrated a consistent growth trend, rising from roughly 6.41 billion USD in the first quarter of 2017 to approximately 12.65 billion USD by mid-2022. This doubling indicates significant capital expansion over the period analyzed.
- While the capital base increased steadily, some downturns or slower growth phases are visible. For instance, a decline or plateau is evident in mid-2020, where capital dips from prior quarter levels before resuming its growth path. The general upward trend implies ongoing investment or equity augmentation alongside the accumulation of liabilities.
- Debt to Capital Ratio
- This ratio illustrates the proportion of debt used in relation to total capital. Starting around 0.27 in early 2017, the ratio maintained a relatively stable range between 0.26 and 0.33 through 2018 and into 2019, reflecting a balanced leverage position.
- From 2020 onward, the ratio exhibits an increasing trend, rising from approximately 0.32 to a peak of 0.53 by mid-2022. This rising leverage ratio suggests a growing reliance on debt financing relative to capital. The increase is particularly pronounced during 2021 and early 2022, implying a strategic pivot or necessity toward debt-based capital structure.
- Overall Insights
- The simultaneous increase in both total debt and total capital indicates that while the company is leveraging more debt, it is also expanding its capital base. However, the sharper increase in debt relative to capital in recent periods suggests elevated financial risk or a strategic choice favoring debt financing.
- The gradual but growing debt-to-capital ratio warns of increasing leverage, which may impact creditworthiness and financial flexibility. Continuous monitoring would be advisable to evaluate sustainability of this leverage and its implications for liquidity and profitability.
Debt to Assets
Jun 30, 2022 | Mar 31, 2022 | 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) | |||||||||||||||||||||||||||||
Convertible notes, short-term | |||||||||||||||||||||||||||||
Finance lease liabilities, short-term | |||||||||||||||||||||||||||||
Convertible notes, long-term | |||||||||||||||||||||||||||||
Senior notes, long-term | |||||||||||||||||||||||||||||
Finance lease liabilities, long-term | |||||||||||||||||||||||||||||
Total debt | |||||||||||||||||||||||||||||
Total assets | |||||||||||||||||||||||||||||
Solvency Ratio | |||||||||||||||||||||||||||||
Debt to assets1 | |||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||
Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
Alphabet Inc. | |||||||||||||||||||||||||||||
Comcast Corp. | |||||||||||||||||||||||||||||
Meta Platforms Inc. | |||||||||||||||||||||||||||||
Netflix Inc. | |||||||||||||||||||||||||||||
Take-Two Interactive Software Inc. | |||||||||||||||||||||||||||||
Walt Disney Co. |
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 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 Q2 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The data reveals the company's financial trends over multiple quarters, focusing specifically on total debt, total assets, and the resulting debt-to-assets ratio.
- Total Debt
- Total debt displayed an overall increasing trajectory from March 2017 through June 2022. The debt started at approximately 1.72 billion and gradually rose to over 5.24 billion by mid-2022. Notably, there was a significant increase in debt during periods such as March to June 2018 and from March to June 2021, where total debt nearly doubled compared to earlier quarters. However, a temporary decrease was observed in the fourth quarter of 2019 where debt dropped to around 1.83 billion before rising again in subsequent quarters.
- Total Assets
- Total assets steadily increased from about 6.89 billion in March 2017, reaching a peak near 15.32 billion in June 2021. Thereafter, a decline is noticeable until March 2022, decreasing to roughly 13.55 billion. The asset base generally expanded over the period, reflecting growth in total assets despite some fluctuations and a dip after mid-2021.
- Debt to Assets Ratio
- The ratio of debt to assets fluctuated between 0.16 and 0.39 throughout the period. This ratio started close to 0.25 in early 2017, decreased to a low of 0.16 in the third quarter of 2019, indicating reduced leverage, but then increased sharply again, reaching 0.39 by June 2022. This pattern suggests varying leverage strategies over time, with a period of deleveraging during 2019 followed by a return to higher leverage afterwards.
In summary, the company experienced growth in both assets and liabilities over the reported quarters, with total debt rising at a faster pace during certain intervals, leading to increased leverage as evidenced by the rising debt-to-assets ratio in recent periods. The fluctuations in these metrics may reflect strategic financial decisions related to investments or financing activities during different market conditions.
Debt to Assets (including Operating Lease Liability)
Jun 30, 2022 | Mar 31, 2022 | 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) | |||||||||||||||||||||||||||||
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Finance lease liabilities, long-term | |||||||||||||||||||||||||||||
Total debt | |||||||||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||||
Alphabet Inc. | |||||||||||||||||||||||||||||
Meta Platforms Inc. | |||||||||||||||||||||||||||||
Take-Two Interactive Software Inc. |
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 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 Q2 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The presented financial data reveals notable developments in the company's debt and asset structure over the observed quarters.
- Total Debt (including operating lease liability)
- The total debt demonstrates an overall upward trajectory from March 2017 to June 2022. Initially, debt levels held relatively steady around 1.7 million US dollars (in thousands) from the first quarter of 2017 through the first quarter of 2018. Beginning in mid-2018, there is a significant increase, with debt reaching around 2.7 million by the end of 2018. This upward trend continued through 2019 and 2020, with notable jumps in debt around the first quarter of 2020, maintaining an approximate range between 4.1 million and 4.5 million. From 2021 onward, debt levels escalated sharply, peaking near 6.7 million by mid-2022. This sharp rise in debt reflects a more aggressive borrowing or lease liability strategy in the later periods analyzed.
- Total Assets
- Total assets show consistent growth throughout the timeline. Starting around 6.9 million in early 2017, assets rose steadily over the years, with periodic fluctuations but no extended declines. The growth trend appears strong, reaching over 15.3 million US dollars (in thousands) by mid-2021. A mild decrease in asset value is observed starting in late 2021 into 2022, dipping to about 13.6 million by June 2022. Despite this slight late-period drop, asset growth over the full period remains substantial.
- Debt to Assets Ratio (including operating lease liability)
- The debt to assets ratio reflects the relationship between the company's leverage and its asset base. Early data from 2017 indicates a relatively stable ratio around 0.24 to 0.25, suggesting moderate leverage. Starting mid-2018, the ratio increases to about 0.3, reflecting the rising debt levels outpacing asset growth somewhat during that period. The ratio then fluctuates between approximately 0.22 and 0.34 through 2020, signaling variable leverage management during these quarters. A marked increase is evident in 2021 and into 2022, with the ratio reaching nearly 0.49 by mid-2022. This near doubling from early-period ratios implies a substantially higher leverage position, indicating the company has increased its reliance on debt funding relative to its asset base in the latest quarters.
In summary, the data exhibits a consistent increase in both debt and assets, with the rate of debt accumulation accelerating significantly in recent years. The resulting rise in the debt to assets ratio indicates heightened leverage, which may impact the company’s financial risk profile. The slight decline in total assets toward the end of the period, coupled with rising debt, suggests the need for careful monitoring of balance sheet strength going forward.
Financial Leverage
Jun 30, 2022 | Mar 31, 2022 | 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) | |||||||||||||||||||||||||||||
Total assets | |||||||||||||||||||||||||||||
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Financial leverage1 | |||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||
Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
Alphabet Inc. | |||||||||||||||||||||||||||||
Comcast Corp. | |||||||||||||||||||||||||||||
Meta Platforms Inc. | |||||||||||||||||||||||||||||
Netflix Inc. | |||||||||||||||||||||||||||||
Take-Two Interactive Software Inc. | |||||||||||||||||||||||||||||
Walt Disney Co. |
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 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 Q2 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's financial position over the observed periods.
- Total Assets
- The total assets show an overall increasing trend from March 31, 2017, through June 30, 2022. Starting at approximately US$6.89 billion in early 2017, the asset base expanded steadily, reaching a peak of about US$15 billion by June 30, 2021. Afterward, a gradual decline is observed, with total assets decreasing to approximately US$13.58 billion by June 30, 2022. This indicates a phase of asset growth followed by a mild contraction in the most recent quarters.
- Stockholders’ Equity
- Stockholders’ equity exhibited a general growth pattern until early 2020, increasing from around US$4.69 billion to a peak of about US$8.8 billion by December 31, 2019. However, from March 31, 2020, equity began to decline notably, dropping to approximately US$5.90 billion by March 31, 2022 before stabilizing slightly near US$5.93 billion by June 30, 2022. This downward trend post-early 2020 suggests either increased losses, share repurchases, or other equity-reducing activities during this period.
- Financial Leverage
- The financial leverage ratio remained relatively stable around 1.47 in the early quarters of 2017, indicating that total assets were approximately 1.47 times the stockholders’ equity. A moderate increase occurred in mid-2018, followed by fluctuations around 1.50 to 1.68 until 2020. From 2020 onward, a notable rise in leverage is evident, reaching highs of approximately 2.29 by mid-2022. This significant increase in leverage implies a growing reliance on debt or liabilities relative to equity, possibly reflecting strategic financing decisions or reduced equity levels.
Interest Coverage
Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
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Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
Net income (loss) | |||||||||||||||||||||||||||||
Add: Income tax expense | |||||||||||||||||||||||||||||
Add: Interest expense | |||||||||||||||||||||||||||||
Earnings before interest and tax (EBIT) | |||||||||||||||||||||||||||||
Solvency Ratio | |||||||||||||||||||||||||||||
Interest coverage1 | |||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||
Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
Comcast Corp. | |||||||||||||||||||||||||||||
Netflix Inc. |
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 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 Q2 2022 Calculation
Interest coverage
= (EBITQ2 2022
+ EBITQ1 2022
+ EBITQ4 2021
+ EBITQ3 2021)
÷ (Interest expenseQ2 2022
+ Interest expenseQ1 2022
+ Interest expenseQ4 2021
+ Interest expenseQ3 2021)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and fluctuations in earnings before interest and tax (EBIT), interest expense, and interest coverage over the period examined.
- Earnings before interest and tax (EBIT)
- The EBIT values demonstrate significant volatility across the quarters. Initially, EBIT starts negative at -32,956 thousand USD in March 2017 and worsens to -86,679 thousand USD by mid-2017, indicating challenges in profitability. However, a marked improvement occurs towards the end of 2017, with EBIT turning positive and reaching 120,253 thousand USD in December 2017. This positive trend largely continues into 2018, peaking at 243,810 thousand USD by December 2018. In 2019, EBIT fluctuates with positive but lower values relative to late 2018, ranging from 83,989 to 184,471 thousand USD. The first part of 2020 sees a sharp decline, including a negative EBIT of -249,278 thousand USD in June 2020, indicating operational difficulties or extraordinary expenses during that period. EBIT then recovers, reaching 264,185 thousand USD by the end of 2020. In 2021, performance again fluctuates markedly with some quarters showing positive EBIT around 63,189 to 95,193 thousand USD, but a substantial negative spike of -713,798 thousand USD occurs in the last quarter of 2021. Early 2022 shows mixed results with a large positive value of 844,097 thousand USD in March but a steep negative swing to -312,562 thousand USD by June 2022.
- Interest Expense
- Throughout the observed period, interest expense exhibits a generally gradual upward trend, starting from 25,409 thousand USD in March 2017 and reaching 40,166 thousand USD by December 2020. A notable decrease occurs from early 2021, with interest expense values dropping significantly to levels between approximately 10,824 and 15,444 thousand USD by mid-2022. This decline may reflect changes in the company’s debt structure, refinancing, or reduced borrowing costs.
- Interest Coverage Ratio
- The interest coverage ratio, which indicates the ability to meet interest obligations from EBIT, is only available intermittently but reveals important trends. Starting from a very low ratio of 0.09 in September 2017, this metric improves steadily through 2018 reaching values above 4.0, signaling a stronger capacity to cover interest expenses. In 2019, it remains relatively stable around 3.8 to 4.2. However, deterioration is evident in 2020 with the ratio dropping to as low as 0.16 in June 2020, coincident with negative EBIT values. Recovery to modest coverage is seen later in 2020 and early 2021, with ratios rising to around 1.11 to 4.6. Late 2021 and into 2022 show extreme volatility in interest coverage, with values turning negative and large negative spikes such as -7.03 and -3.62, reflecting periods where EBIT was negative and insufficient to cover interest expenses. The brief spike to 7.88 indicates a transient period of strong EBIT relative to interest, but the very low value of 0.21 by mid-2022 suggests persistent volatility and financial strain.
In summary, the financial data shows considerable volatility in operating profitability and interest coverage over the analyzed period. Earnings before interest and tax display recurring fluctuations between positive and negative values, with some quarters experiencing sharp declines, notably in mid-2020 and late 2021. Interest expense generally increases through 2020 before declining sharply in 2021 and 2022. The interest coverage ratio captures these dynamics, reflecting periods of both robust capacity to meet interest obligations and intervals of financial stress where coverage is inadequate or negative. This pattern suggests that the entity's financial performance and stability are subject to significant quarter-to-quarter variability, likely influenced by operational challenges and changes in financing costs.