Analysis of Solvency Ratios
Quarterly Data
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 (quarterly data)
Based on: 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), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
The analysis of the financial ratios over the observed periods reveals several notable trends and patterns in the company's financial structure and performance.
- Debt to Equity Ratio
- The debt to equity ratio exhibited moderate fluctuations throughout the periods. Starting at 0.61 in March 2013, it remained relatively stable around 0.6 until the end of 2013. Thereafter, a gradual increase was observed, peaking at 1.12 in March 2016, indicating a higher reliance on debt financing relative to equity at that point. Following this peak, the ratio exhibited a downward trend, reaching 0.73 by September 2018. This suggests efforts towards deleveraging or increasing equity financing in the later periods.
- Debt to Capital Ratio
- This ratio followed a similar pattern to the debt to equity ratio but on a more conservative scale. Beginning at 0.38 in March 2013, it increased gradually until reaching a high of 0.53 in March 2016. Post this peak, the ratio steadily decreased to 0.42 by September 2018. The trends confirm the observation of increased debt levels until early 2016, followed by a reduction in debt relative to the total capital employed.
- Debt to Assets Ratio
- The debt to assets ratio maintained relative stability with minor fluctuations. It started at 0.26 in March 2013 and showed a slight rise to 0.32 in March 2016, consistent with the increased debt levels seen in other leverage ratios. Thereafter, the ratio stabilized around 0.27 to 0.30, ending at 0.27 in September 2018, reflecting a modest reduction in leverage against the asset base in the recent periods.
- Financial Leverage
- Financial leverage ratios indicated an upward trend from 2.35 in March 2013 to a peak of 3.44 in March 2016, aligning with the trends observed in debt ratios. Following this peak, the leverage declined steadily, reaching 2.7 by September 2018. This reduction suggests a strategic move to moderate financial risk by lowering leverage in the latter periods.
- Interest Coverage Ratio
- Interest coverage ratios, available from December 2013 onwards, demonstrate a generally robust capacity to cover interest expenses. Starting at 6.08 in December 2013, the ratio increased gradually, peaking at 9.25 in March 2018 and maintaining high levels thereafter. This increasing trend indicates strengthening earnings relative to interest obligations, suggesting improved operational profitability or reduced interest burdens over time.
Overall, the data indicates that the company experienced an increase in financial leverage and debt levels up to early 2016, followed by a period of deleveraging and improved coverage of interest expenses. The trends reflect a deliberate adjustment in capital structure aimed at balancing growth and financial risk management.
Debt Ratios
Coverage Ratios
Debt to Equity
Express Scripts Holding Co., debt to equity calculation (quarterly data)
| Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Short-term debt and current maturities of long-term debt | 2,021,300) | 1,533,100) | 85,600) | 1,032,900) | 1,181,100) | 1,151,300) | 1,621,300) | 722,300) | 1,184,000) | 4,140,900) | 2,208,600) | 1,646,400) | 1,649,200) | 2,149,700) | 1,607,100) | 2,555,300) | 3,245,400) | 3,938,300) | 2,635,200) | 1,584,000) | 631,600) | 631,600) | 631,600) | |||||||
| Long-term debt, excluding current maturities | 12,974,200) | 13,457,600) | 14,900,500) | 14,981,500) | 13,726,700) | 13,835,200) | 13,906,200) | 14,846,000) | 14,924,500) | 11,842,600) | 14,382,700) | 13,946,300) | 14,037,700) | 14,583,900) | 10,741,200) | 11,012,700) | 11,442,000) | 12,165,500) | 11,145,100) | 12,363,000) | 13,482,000) | 13,648,500) | 13,815,100) | |||||||
| Total debt | 14,995,500) | 14,990,700) | 14,986,100) | 16,014,400) | 14,907,800) | 14,986,500) | 15,527,500) | 15,568,300) | 16,108,500) | 15,983,500) | 16,591,300) | 15,592,700) | 15,686,900) | 16,733,600) | 12,348,300) | 13,568,000) | 14,687,400) | 16,103,800) | 13,780,300) | 13,947,000) | 14,113,600) | 14,280,100) | 14,446,700) | |||||||
| Total Express Scripts stockholders’ equity | 20,565,900) | 19,370,000) | 18,442,500) | 18,119,600) | 15,916,500) | 15,744,600) | 15,922,600) | 16,236,000) | 15,600,300) | 15,403,100) | 14,841,100) | 17,372,800) | 16,538,300) | 15,822,200) | 20,604,800) | 20,054,200) | 20,157,700) | 20,451,900) | 21,874,300) | 21,837,400) | 23,702,300) | 23,866,500) | 23,617,800) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to equity1 | 0.73 | 0.77 | 0.81 | 0.88 | 0.94 | 0.95 | 0.98 | 0.96 | 1.03 | 1.04 | 1.12 | 0.90 | 0.95 | 1.06 | 0.60 | 0.68 | 0.73 | 0.79 | 0.63 | 0.64 | 0.60 | 0.60 | 0.61 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| CVS Health Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q3 2018 Calculation
Debt to equity = Total debt ÷ Total Express Scripts stockholders’ equity
= 14,995,500 ÷ 20,565,900 = 0.73
2 Click competitor name to see calculations.
The analysis of the quarterly financial metrics reveals distinct trends in the company’s capital structure over the observed periods.
- Total Debt
- Total debt shows considerable fluctuation throughout the timeframe. Initially, from March 2013 to March 2014, there is a gradual decline from approximately 14.4 billion to 13.8 billion USD, followed by a noteworthy spike in June 2014 reaching 16.1 billion USD. This is succeeded by another period of decrease until March 2015, where debt reduces to around 12.3 billion USD. Debt rises again mid-2015 to a peak near 16.6 billion USD and continues to exhibit variability but generally remains within a range between 14.9 billion and 16.6 billion USD in the latter quarters. The data reflects tactical adjustments in borrowing, potentially influenced by operational needs or refinancing activities.
- Total Stockholders’ Equity
- Stockholders’ equity starts at about 23.6 billion USD in the first quarter of 2013 and remains relatively stable until the end of 2013. However, a decline is evident entering 2014 and through mid-2015, reaching a notable low point near 15.8 billion USD. From late 2015 onwards, equity values show a recovery trend, progressively increasing to roughly 20.6 billion USD by the third quarter of 2018. This upward trend suggests strengthening equity base and possible retention of earnings or capital injections in more recent periods, improving the company’s net worth.
- Debt to Equity Ratio
- The debt to equity ratio highlights significant variability that corresponds with changes in both debt and equity levels. Initially, it hovers around 0.6 in 2013, then escalates sharply to peak at 1.12 in the first quarter of 2016, reflecting a heavier reliance on debt financing relative to equity during that period. Subsequently, the ratio declines steadily, reaching around 0.73 by September 2018. This reduction indicates a gradual deleveraging or strengthening equity position, which tends to improve financial stability and reduce risk.
Overall, the financial data suggests cyclical borrowing behavior combined with targeted efforts to rebuild equity, resulting in a gradually improving leverage position. The company appears to manage its capital structure actively to balance growth and risk over the examined quarters.
Debt to Capital
Express Scripts Holding Co., debt to capital calculation (quarterly data)
| Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Short-term debt and current maturities of long-term debt | 2,021,300) | 1,533,100) | 85,600) | 1,032,900) | 1,181,100) | 1,151,300) | 1,621,300) | 722,300) | 1,184,000) | 4,140,900) | 2,208,600) | 1,646,400) | 1,649,200) | 2,149,700) | 1,607,100) | 2,555,300) | 3,245,400) | 3,938,300) | 2,635,200) | 1,584,000) | 631,600) | 631,600) | 631,600) | |||||||
| Long-term debt, excluding current maturities | 12,974,200) | 13,457,600) | 14,900,500) | 14,981,500) | 13,726,700) | 13,835,200) | 13,906,200) | 14,846,000) | 14,924,500) | 11,842,600) | 14,382,700) | 13,946,300) | 14,037,700) | 14,583,900) | 10,741,200) | 11,012,700) | 11,442,000) | 12,165,500) | 11,145,100) | 12,363,000) | 13,482,000) | 13,648,500) | 13,815,100) | |||||||
| Total debt | 14,995,500) | 14,990,700) | 14,986,100) | 16,014,400) | 14,907,800) | 14,986,500) | 15,527,500) | 15,568,300) | 16,108,500) | 15,983,500) | 16,591,300) | 15,592,700) | 15,686,900) | 16,733,600) | 12,348,300) | 13,568,000) | 14,687,400) | 16,103,800) | 13,780,300) | 13,947,000) | 14,113,600) | 14,280,100) | 14,446,700) | |||||||
| Total Express Scripts stockholders’ equity | 20,565,900) | 19,370,000) | 18,442,500) | 18,119,600) | 15,916,500) | 15,744,600) | 15,922,600) | 16,236,000) | 15,600,300) | 15,403,100) | 14,841,100) | 17,372,800) | 16,538,300) | 15,822,200) | 20,604,800) | 20,054,200) | 20,157,700) | 20,451,900) | 21,874,300) | 21,837,400) | 23,702,300) | 23,866,500) | 23,617,800) | |||||||
| Total capital | 35,561,400) | 34,360,700) | 33,428,600) | 34,134,000) | 30,824,300) | 30,731,100) | 31,450,100) | 31,804,300) | 31,708,800) | 31,386,600) | 31,432,400) | 32,965,500) | 32,225,200) | 32,555,800) | 32,953,100) | 33,622,200) | 34,845,100) | 36,555,700) | 35,654,600) | 35,784,400) | 37,815,900) | 38,146,600) | 38,064,500) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to capital1 | 0.42 | 0.44 | 0.45 | 0.47 | 0.48 | 0.49 | 0.49 | 0.49 | 0.51 | 0.51 | 0.53 | 0.47 | 0.49 | 0.51 | 0.37 | 0.40 | 0.42 | 0.44 | 0.39 | 0.39 | 0.37 | 0.37 | 0.38 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| CVS Health Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q3 2018 Calculation
Debt to capital = Total debt ÷ Total capital
= 14,995,500 ÷ 35,561,400 = 0.42
2 Click competitor name to see calculations.
The financial data indicates notable fluctuations in total debt, total capital, and the debt to capital ratio over the observed periods.
- Total Debt
- The total debt exhibits a somewhat cyclical pattern with several peaks and troughs. Starting at approximately 14.45 billion USD in March 2013, it generally trends downward until December 2014, where it reaches around 13.57 billion USD. A significant increase is observed from March 2015 to June 2015, with total debt surging to approximately 16.73 billion USD. Subsequently, total debt demonstrates some volatility but predominantly remains above the 14.9 billion USD mark through the end of 2018. This pattern suggests periods of increased borrowing or refinancing activities, followed by slight reductions or stabilization phases.
- Total Capital
- Total capital generally trends downward from about 38.06 billion USD in March 2013 to a low of roughly 31.31 billion USD in June 2017. After this point, total capital begins to rise again, reaching approximately 35.56 billion USD by September 2018. The initial decline reflects a reduction in overall capitalization, possibly due to share repurchases, dividend payments, or asset sales. The later increase could signify capital injections, asset growth, or retained earnings accumulation.
- Debt to Capital Ratio
- The debt to capital ratio ranges between 0.37 and 0.53, indicating that debt comprises roughly 37% to 53% of total capital during the timeframe. The ratio starts near 0.38 in early 2013, rises to a peak of 0.53 in March 2016, reflecting increased leverage, and then gradually decreases to about 0.42 by September 2018. The increase in leverage up to early 2016 corresponds with rising total debt and declining total capital, while the subsequent decrease suggests deleveraging efforts or capital growth surpassing the increase in debt.
Overall, the data reveal a phase of increased leverage and higher debt levels around 2015-2016, followed by efforts to reduce leverage toward the later periods. Total capital dynamics suggest some volatility influenced by various financial strategies affecting capitalization. The company appears to manage its capital structure actively, balancing between debt and equity components over the analyzed quarters.
Debt to Assets
Express Scripts Holding Co., debt to assets calculation (quarterly data)
| Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Short-term debt and current maturities of long-term debt | 2,021,300) | 1,533,100) | 85,600) | 1,032,900) | 1,181,100) | 1,151,300) | 1,621,300) | 722,300) | 1,184,000) | 4,140,900) | 2,208,600) | 1,646,400) | 1,649,200) | 2,149,700) | 1,607,100) | 2,555,300) | 3,245,400) | 3,938,300) | 2,635,200) | 1,584,000) | 631,600) | 631,600) | 631,600) | |||||||
| Long-term debt, excluding current maturities | 12,974,200) | 13,457,600) | 14,900,500) | 14,981,500) | 13,726,700) | 13,835,200) | 13,906,200) | 14,846,000) | 14,924,500) | 11,842,600) | 14,382,700) | 13,946,300) | 14,037,700) | 14,583,900) | 10,741,200) | 11,012,700) | 11,442,000) | 12,165,500) | 11,145,100) | 12,363,000) | 13,482,000) | 13,648,500) | 13,815,100) | |||||||
| Total debt | 14,995,500) | 14,990,700) | 14,986,100) | 16,014,400) | 14,907,800) | 14,986,500) | 15,527,500) | 15,568,300) | 16,108,500) | 15,983,500) | 16,591,300) | 15,592,700) | 15,686,900) | 16,733,600) | 12,348,300) | 13,568,000) | 14,687,400) | 16,103,800) | 13,780,300) | 13,947,000) | 14,113,600) | 14,280,100) | 14,446,700) | |||||||
| Total assets | 55,441,600) | 54,677,800) | 53,405,600) | 54,255,800) | 51,206,200) | 50,513,400) | 51,056,000) | 51,744,900) | 50,909,300) | 50,858,600) | 51,107,600) | 53,243,300) | 51,996,500) | 51,867,800) | 51,905,100) | 53,798,900) | 53,439,200) | 54,633,800) | 52,747,100) | 53,548,200) | 54,763,000) | 54,581,500) | 55,585,700) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to assets1 | 0.27 | 0.27 | 0.28 | 0.30 | 0.29 | 0.30 | 0.30 | 0.30 | 0.32 | 0.31 | 0.32 | 0.29 | 0.30 | 0.32 | 0.24 | 0.25 | 0.27 | 0.29 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| CVS Health Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q3 2018 Calculation
Debt to assets = Total debt ÷ Total assets
= 14,995,500 ÷ 55,441,600 = 0.27
2 Click competitor name to see calculations.
- Total Debt
- The total debt amount demonstrates a fluctuating pattern over the observed periods. Initially, there is a gradual decline from approximately 14.4 billion USD in the first quarter of 2013 to about 13.6 billion USD at the end of 2014. A noticeable spike occurs in mid-2014 and mid-2015, where total debt rises above 16 billion USD. However, following these peaks, the debt levels generally decrease but remain elevated compared to the early 2013 figures. From early 2016 onwards, total debt mostly hovers between 15.5 billion and 16 billion USD, showing relative stability but without reverting to the lower levels seen in the initial quarters.
- Total Assets
- Total assets exhibit a declining trend from approximately 55.6 billion USD in the first quarter of 2013 to a low of around 50.5 billion USD by mid-2017. This decrease is gradual with minor fluctuations. After mid-2017, asset values recover somewhat, increasing to roughly 55.4 billion USD by the third quarter of 2018. Despite this late recovery, total assets do not show a clear upward trend across the entire timeframe, instead reflecting a cyclical movement with periods of contraction followed by partial rebound.
- Debt to Assets Ratio
- The debt to assets ratio stays relatively stable around 0.26 in the early quarters of 2013 and remains close to this level throughout 2014, despite some fluctuations in absolute amounts of debt and assets. In mid-2014 and 2015, the ratio increases to approximately 0.29 to 0.32, indicating higher leverage during these periods coinciding with peaks in total debt and the dip in total assets. Post-2015, the ratio stabilizes near 0.3, suggesting a moderately higher leverage compared to the initial years. Towards the end of the observation period, the ratio slightly decreases but remains above the early 2013 levels, aligning with the partial recovery in asset values and relatively stable debt.
- Overall Trends and Insights
- The data reflects a company managing fluctuating financial leverage with peaks in total debt and a generally declining asset base during the middle years of the observed period. Increased leverage ratios in mid-2014 to 2016 coincide with heightened debt and relatively lower asset levels, hinting at potentially increased financial risk during these years. The partial recovery in asset values combined with a stable debt base towards 2018 has helped reduce the debt to assets ratio slightly, indicating a modest improvement in the balance sheet structure. The volatility in debt levels suggests active debt management strategies, possibly related to financing operations, investments, or refinancing activities. Overall, the company's financial position shows resilience with controlled leverage and a stabilizing asset base in the later periods.
Financial Leverage
Express Scripts Holding Co., financial leverage calculation (quarterly data)
| Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Total assets | 55,441,600) | 54,677,800) | 53,405,600) | 54,255,800) | 51,206,200) | 50,513,400) | 51,056,000) | 51,744,900) | 50,909,300) | 50,858,600) | 51,107,600) | 53,243,300) | 51,996,500) | 51,867,800) | 51,905,100) | 53,798,900) | 53,439,200) | 54,633,800) | 52,747,100) | 53,548,200) | 54,763,000) | 54,581,500) | 55,585,700) | |||||||
| Total Express Scripts stockholders’ equity | 20,565,900) | 19,370,000) | 18,442,500) | 18,119,600) | 15,916,500) | 15,744,600) | 15,922,600) | 16,236,000) | 15,600,300) | 15,403,100) | 14,841,100) | 17,372,800) | 16,538,300) | 15,822,200) | 20,604,800) | 20,054,200) | 20,157,700) | 20,451,900) | 21,874,300) | 21,837,400) | 23,702,300) | 23,866,500) | 23,617,800) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Financial leverage1 | 2.70 | 2.82 | 2.90 | 2.99 | 3.22 | 3.21 | 3.21 | 3.19 | 3.26 | 3.30 | 3.44 | 3.06 | 3.14 | 3.28 | 2.52 | 2.68 | 2.65 | 2.67 | 2.41 | 2.45 | 2.31 | 2.29 | 2.35 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| CVS Health Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q3 2018 Calculation
Financial leverage = Total assets ÷ Total Express Scripts stockholders’ equity
= 55,441,600 ÷ 20,565,900 = 2.70
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in the asset base, equity position, and financial leverage over the reported quarters.
- Total Assets
- Total assets exhibit a declining trend from March 2013 through March 2016, decreasing from approximately $55.6 billion to about $51.1 billion. Following this period, the asset base remains relatively stable with minor fluctuations, but an upward trend becomes visible from December 2017 onward, with assets increasing to approximately $55.4 billion by September 2018. This suggests a period of asset consolidation followed by renewed growth.
- Total Stockholders’ Equity
- Stockholders’ equity demonstrates greater volatility when compared to total assets. Equity decreases sharply from over $23.6 billion in early 2013 to approximately $15.8 billion by mid-2015, reflecting a significant contraction. Between mid-2015 and late 2016, equity remains relatively flat with modest increases. From early 2017 onwards, equity recovers steadily, rising from approximately $15.9 billion to $20.5 billion by September 2018, indicating improved financial strength or retained earnings accumulation during this period.
- Financial Leverage
- Financial leverage shows a fluctuating pattern with values ranging from about 2.29 to 3.44 over the reported periods. Initially, leverage remains near 2.3 but increases sharply starting mid-2014, peaking at 3.44 in March 2016. Following this peak, leverage starts to decrease gradually but remains elevated above 2.7 through September 2018. This pattern reflects an increased reliance on debt or liabilities during the mid-period, followed by a partial deleveraging in the later stages.
In summary, the company's total assets underwent a downward adjustment in the early years followed by recovery, while stockholders’ equity experienced significant declines before demonstrating a strong recovery trend. The financial leverage ratio increased notably during the middle years, indicating heightened debt levels relative to equity, but began to moderate towards the end of the period under review. Collectively, these patterns suggest a phase of financial restructuring or stress mid-cycle, followed by stabilization and growth in more recent quarters.
Interest Coverage
Express Scripts Holding Co., interest coverage calculation (quarterly data)
| Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income attributable to Express Scripts | 1,071,600) | 877,300) | 623,200) | 2,327,600) | 841,700) | 801,800) | 546,300) | 1,434,700) | 722,900) | 720,700) | 526,100) | 773,500) | 661,700) | 600,100) | 441,100) | 581,800) | 582,300) | 515,200) | 328,300) | 501,900) | 426,700) | 543,000) | 373,000) | |||||||
| Add: Net income attributable to noncontrolling interest | 2,200) | 2,100) | 2,700) | 3,300) | 3,300) | 3,700) | 4,000) | 5,100) | 5,600) | 6,400) | 6,100) | 5,400) | 5,700) | 6,000) | 6,000) | 6,900) | 6,800) | 7,500) | 6,200) | 4,100) | 11,400) | 7,500) | 5,100) | |||||||
| Less: Net loss from discontinued operations, net of tax | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | (12,300) | (15,500) | (23,900) | (1,900) | |||||||
| Add: Income tax expense | 276,800) | 290,300) | 193,700) | (902,300) | 499,300) | 435,400) | 364,900) | (104,400) | 422,400) | 402,700) | 278,800) | 317,400) | 378,200) | 400,300) | 268,400) | 241,800) | 209,200) | 318,900) | 261,300) | 208,000) | 326,500) | 310,400) | 259,100) | |||||||
| Add: Interest expense and other | 151,000) | 151,300) | 154,000) | 168,000) | 147,700) | 146,500) | 145,700) | 146,000) | 273,400) | 136,800) | 138,600) | 123,200) | 128,400) | 132,300) | 116,400) | 122,100) | 201,600) | 134,700) | 124,500) | 125,700) | 127,400) | 127,600) | 215,400) | |||||||
| Earnings before interest and tax (EBIT) | 1,501,600) | 1,321,000) | 973,600) | 1,596,600) | 1,492,000) | 1,387,400) | 1,060,900) | 1,481,400) | 1,424,300) | 1,266,600) | 949,600) | 1,219,500) | 1,174,000) | 1,138,700) | 831,900) | 952,600) | 999,900) | 976,300) | 720,300) | 852,000) | 907,500) | 1,012,400) | 854,500) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Interest coverage1 | 8.64 | 8.67 | 8.84 | 9.11 | 9.25 | 7.52 | 7.46 | 7.37 | 7.23 | 8.75 | 8.58 | 8.72 | 8.21 | 6.85 | 6.54 | 6.26 | 6.05 | 6.75 | 6.91 | 6.08 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| CVS Health Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q3 2018 Calculation
Interest coverage
= (EBITQ3 2018
+ EBITQ2 2018
+ EBITQ1 2018
+ EBITQ4 2017)
÷ (Interest expenseQ3 2018
+ Interest expenseQ2 2018
+ Interest expenseQ1 2018
+ Interest expenseQ4 2017)
= (1,501,600 + 1,321,000 + 973,600 + 1,596,600)
÷ (151,000 + 151,300 + 154,000 + 168,000)
= 8.64
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values show considerable fluctuations over the analyzed periods. Starting at 854,500 thousand US dollars in March 2013, EBIT increased to peak values above 1,450,000 thousand US dollars by late 2016 and 2017. The data exhibits a cyclical pattern with quarterly variations, but an overall upward trend is apparent from 2013 through 2017. Notable dips occur periodically, for instance in March 2014 and March 2018, where EBIT values drop close to or below 1,000,000 thousand US dollars. The highest quarterly EBIT is observed in December 2017 at approximately 1,596,600 thousand US dollars. This pattern suggests seasonal or operational factors influencing earnings, but the long-term trajectory indicates growth.
- Interest expense and other
- Interest expenses generally fluctuate between 120,000 and 170,000 thousand US dollars across most quarters, with some exceptions. For example, a significant increase to 273,400 thousand US dollars occurs in September 2016, sharply higher than surrounding quarters, before decreasing again in subsequent periods. This spike may correspond to an extraordinary financing cost or refinancing event during that quarter. Otherwise, interest expenses remain relatively stable with slight upward movement over time but do not exhibit a significant upward or downward trend. The consistency in interest expenses relative to EBIT suggests controlled debt servicing costs despite the variations in EBIT.
- Interest coverage ratio
- The interest coverage ratio, available for most periods beginning mid-2013, remains consistently above 6.0, indicating a healthy ability to cover interest expenses with operating earnings. Starting from roughly 6.0 in mid-2013, the ratio generally improves over time, reaching values above 8.0 in several quarters between 2015 and 2018. The ratio peaks at 9.25 in March 2018, the highest recorded level, implying strong EBIT relative to interest obligations during this period. Minor fluctuations occur but no downward trends are evident, signifying sustained financial strength and ample capacity to meet interest requirements.