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)
Express Scripts Holding Co., solvency ratios
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Express Scripts Holding Co. debt to equity ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Express Scripts Holding Co. debt to capital ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Express Scripts Holding Co. debt to assets ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Express Scripts Holding Co. financial leverage ratio increased from 2015 to 2016 but then decreased significantly from 2016 to 2017. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Express Scripts Holding Co. interest coverage ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Express Scripts Holding Co. fixed charge coverage ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
Debt to Equity
Express Scripts Holding Co., debt to equity calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt and current maturities of long-term debt | 1,032,900) | 722,300) | 1,646,400) | 2,555,300) | 1,584,000) | |
| Long-term debt, excluding current maturities | 14,981,500) | 14,846,000) | 13,946,300) | 11,012,700) | 12,363,000) | |
| Total debt | 16,014,400) | 15,568,300) | 15,592,700) | 13,568,000) | 13,947,000) | |
| Total Express Scripts stockholders’ equity | 18,119,600) | 16,236,000) | 17,372,800) | 20,054,200) | 21,837,400) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.88 | 0.96 | 0.90 | 0.68 | 0.64 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Debt to equity = Total debt ÷ Total Express Scripts stockholders’ equity
= 16,014,400 ÷ 18,119,600 = 0.88
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. | Express Scripts Holding Co. debt to equity ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
Debt to Capital
Express Scripts Holding Co., debt to capital calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt and current maturities of long-term debt | 1,032,900) | 722,300) | 1,646,400) | 2,555,300) | 1,584,000) | |
| Long-term debt, excluding current maturities | 14,981,500) | 14,846,000) | 13,946,300) | 11,012,700) | 12,363,000) | |
| Total debt | 16,014,400) | 15,568,300) | 15,592,700) | 13,568,000) | 13,947,000) | |
| Total Express Scripts stockholders’ equity | 18,119,600) | 16,236,000) | 17,372,800) | 20,054,200) | 21,837,400) | |
| Total capital | 34,134,000) | 31,804,300) | 32,965,500) | 33,622,200) | 35,784,400) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.47 | 0.49 | 0.47 | 0.40 | 0.39 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Debt to capital = Total debt ÷ Total capital
= 16,014,400 ÷ 34,134,000 = 0.47
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. | Express Scripts Holding Co. debt to capital ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
Debt to Assets
Express Scripts Holding Co., debt to assets calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt and current maturities of long-term debt | 1,032,900) | 722,300) | 1,646,400) | 2,555,300) | 1,584,000) | |
| Long-term debt, excluding current maturities | 14,981,500) | 14,846,000) | 13,946,300) | 11,012,700) | 12,363,000) | |
| Total debt | 16,014,400) | 15,568,300) | 15,592,700) | 13,568,000) | 13,947,000) | |
| Total assets | 54,255,800) | 51,744,900) | 53,243,300) | 53,798,900) | 53,548,200) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.30 | 0.30 | 0.29 | 0.25 | 0.26 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Debt to assets = Total debt ÷ Total assets
= 16,014,400 ÷ 54,255,800 = 0.30
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. | Express Scripts Holding Co. debt to assets ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level. |
Financial Leverage
Express Scripts Holding Co., financial leverage calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 54,255,800) | 51,744,900) | 53,243,300) | 53,798,900) | 53,548,200) | |
| Total Express Scripts stockholders’ equity | 18,119,600) | 16,236,000) | 17,372,800) | 20,054,200) | 21,837,400) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.99 | 3.19 | 3.06 | 2.68 | 2.45 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Financial leverage = Total assets ÷ Total Express Scripts stockholders’ equity
= 54,255,800 ÷ 18,119,600 = 2.99
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. | Express Scripts Holding Co. financial leverage ratio increased from 2015 to 2016 but then decreased significantly from 2016 to 2017. |
Interest Coverage
Express Scripts Holding Co., interest coverage calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Express Scripts | 4,517,400) | 3,404,400) | 2,476,400) | 2,007,600) | 1,844,600) | |
| Add: Net income attributable to noncontrolling interest | 14,300) | 23,200) | 23,100) | 27,400) | 28,100) | |
| Less: Net loss from discontinued operations, net of tax | —) | —) | —) | —) | (53,600) | |
| Add: Income tax expense | 397,300) | 999,500) | 1,364,300) | 1,031,200) | 1,104,000) | |
| Add: Interest expense and other | 607,900) | 694,800) | 500,300) | 582,900) | 596,100) | |
| Earnings before interest and tax (EBIT) | 5,536,900) | 5,121,900) | 4,364,100) | 3,649,100) | 3,626,400) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 9.11 | 7.37 | 8.72 | 6.26 | 6.08 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,536,900 ÷ 607,900 = 9.11
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. | Express Scripts Holding Co. interest coverage ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
Fixed Charge Coverage
Express Scripts Holding Co., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Express Scripts | 4,517,400) | 3,404,400) | 2,476,400) | 2,007,600) | 1,844,600) | |
| Add: Net income attributable to noncontrolling interest | 14,300) | 23,200) | 23,100) | 27,400) | 28,100) | |
| Less: Net loss from discontinued operations, net of tax | —) | —) | —) | —) | (53,600) | |
| Add: Income tax expense | 397,300) | 999,500) | 1,364,300) | 1,031,200) | 1,104,000) | |
| Add: Interest expense and other | 607,900) | 694,800) | 500,300) | 582,900) | 596,100) | |
| Earnings before interest and tax (EBIT) | 5,536,900) | 5,121,900) | 4,364,100) | 3,649,100) | 3,626,400) | |
| Add: Rental expense under the office and distribution facilities leases | 69,300) | 62,900) | 62,500) | 59,700) | 83,800) | |
| Earnings before fixed charges and tax | 5,606,200) | 5,184,800) | 4,426,600) | 3,708,800) | 3,710,200) | |
| Interest expense and other | 607,900) | 694,800) | 500,300) | 582,900) | 596,100) | |
| Rental expense under the office and distribution facilities leases | 69,300) | 62,900) | 62,500) | 59,700) | 83,800) | |
| Fixed charges | 677,200) | 757,700) | 562,800) | 642,600) | 679,900) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 8.28 | 6.84 | 7.87 | 5.77 | 5.46 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 5,606,200 ÷ 677,200 = 8.28
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Express Scripts Holding Co. fixed charge coverage ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |