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)
Keurig Dr Pepper Inc., solvency ratios
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Keurig Dr Pepper Inc. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Keurig Dr Pepper Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Keurig Dr Pepper Inc. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Keurig Dr Pepper Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Keurig Dr Pepper Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Keurig Dr Pepper Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Keurig Dr Pepper Inc. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Keurig Dr Pepper Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Keurig Dr Pepper Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity
Keurig Dr Pepper Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Short-term borrowings and current portion of long-term obligations | 304) | 2,345) | 1,593) | 1,458) | |
| Current finance lease liability | 79) | 44) | 41) | 26) | |
| Long-term obligations, excluding current portion | 11,578) | 11,143) | 12,827) | 14,201) | |
| Non-current finance lease liability | 621) | 298) | 269) | 305) | |
| Total debt | 12,582) | 13,830) | 14,730) | 15,990) | |
| Stockholders’ equity | 24,972) | 23,829) | 23,257) | 22,533) | |
| Solvency Ratio | |||||
| Debt to equity1 | 0.50 | 0.58 | 0.63 | 0.71 | |
| Benchmarks | |||||
| Debt to Equity, Competitors2 | |||||
| Coca-Cola Co. | 1.86 | 2.22 | 2.25 | — | |
| Mondelēz International Inc. | 0.69 | 0.73 | 0.68 | — | |
| PepsiCo Inc. | 2.51 | 3.28 | 2.17 | — | |
| Philip Morris International Inc. | — | — | — | — | |
| Debt to Equity, Sector | |||||
| Food, Beverage & Tobacco | 2.28 | 2.90 | — | — | |
| Debt to Equity, Industry | |||||
| Consumer Staples | 1.07 | 1.24 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 12,582 ÷ 24,972 = 0.50
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. | Keurig Dr Pepper Inc. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity (including Operating Lease Liability)
Keurig Dr Pepper Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Short-term borrowings and current portion of long-term obligations | 304) | 2,345) | 1,593) | 1,458) | |
| Current finance lease liability | 79) | 44) | 41) | 26) | |
| Long-term obligations, excluding current portion | 11,578) | 11,143) | 12,827) | 14,201) | |
| Non-current finance lease liability | 621) | 298) | 269) | 305) | |
| Total debt | 12,582) | 13,830) | 14,730) | 15,990) | |
| Current operating lease liability | 76) | 72) | 69) | —) | |
| Non-current operating lease liability | 608) | 580) | 427) | —) | |
| Total debt (including operating lease liability) | 13,266) | 14,482) | 15,226) | 15,990) | |
| Stockholders’ equity | 24,972) | 23,829) | 23,257) | 22,533) | |
| Solvency Ratio | |||||
| Debt to equity (including operating lease liability)1 | 0.53 | 0.61 | 0.65 | 0.71 | |
| Benchmarks | |||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||
| Coca-Cola Co. | 1.92 | 2.30 | 2.33 | — | |
| Mondelēz International Inc. | 0.71 | 0.75 | 0.70 | — | |
| PepsiCo Inc. | 2.64 | 3.41 | 2.27 | — | |
| Philip Morris International Inc. | — | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||
| Food, Beverage & Tobacco | 2.36 | 3.00 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||
| Consumer Staples | 1.19 | 1.39 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 13,266 ÷ 24,972 = 0.53
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Keurig Dr Pepper Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital
Keurig Dr Pepper Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Short-term borrowings and current portion of long-term obligations | 304) | 2,345) | 1,593) | 1,458) | |
| Current finance lease liability | 79) | 44) | 41) | 26) | |
| Long-term obligations, excluding current portion | 11,578) | 11,143) | 12,827) | 14,201) | |
| Non-current finance lease liability | 621) | 298) | 269) | 305) | |
| Total debt | 12,582) | 13,830) | 14,730) | 15,990) | |
| Stockholders’ equity | 24,972) | 23,829) | 23,257) | 22,533) | |
| Total capital | 37,554) | 37,659) | 37,987) | 38,523) | |
| Solvency Ratio | |||||
| Debt to capital1 | 0.34 | 0.37 | 0.39 | 0.42 | |
| Benchmarks | |||||
| Debt to Capital, Competitors2 | |||||
| Coca-Cola Co. | 0.65 | 0.69 | 0.69 | — | |
| Mondelēz International Inc. | 0.41 | 0.42 | 0.40 | — | |
| PepsiCo Inc. | 0.72 | 0.77 | 0.68 | — | |
| Philip Morris International Inc. | 1.57 | 1.66 | 1.59 | — | |
| Debt to Capital, Sector | |||||
| Food, Beverage & Tobacco | 0.70 | 0.74 | — | — | |
| Debt to Capital, Industry | |||||
| Consumer Staples | 0.52 | 0.55 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 12,582 ÷ 37,554 = 0.34
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. | Keurig Dr Pepper Inc. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital (including Operating Lease Liability)
Keurig Dr Pepper Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Short-term borrowings and current portion of long-term obligations | 304) | 2,345) | 1,593) | 1,458) | |
| Current finance lease liability | 79) | 44) | 41) | 26) | |
| Long-term obligations, excluding current portion | 11,578) | 11,143) | 12,827) | 14,201) | |
| Non-current finance lease liability | 621) | 298) | 269) | 305) | |
| Total debt | 12,582) | 13,830) | 14,730) | 15,990) | |
| Current operating lease liability | 76) | 72) | 69) | —) | |
| Non-current operating lease liability | 608) | 580) | 427) | —) | |
| Total debt (including operating lease liability) | 13,266) | 14,482) | 15,226) | 15,990) | |
| Stockholders’ equity | 24,972) | 23,829) | 23,257) | 22,533) | |
| Total capital (including operating lease liability) | 38,238) | 38,311) | 38,483) | 38,523) | |
| Solvency Ratio | |||||
| Debt to capital (including operating lease liability)1 | 0.35 | 0.38 | 0.40 | 0.42 | |
| Benchmarks | |||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||
| Coca-Cola Co. | 0.66 | 0.70 | 0.70 | — | |
| Mondelēz International Inc. | 0.42 | 0.43 | 0.41 | — | |
| PepsiCo Inc. | 0.73 | 0.77 | 0.69 | — | |
| Philip Morris International Inc. | 1.55 | 1.64 | 1.57 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||
| Food, Beverage & Tobacco | 0.70 | 0.75 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||
| Consumer Staples | 0.54 | 0.58 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 13,266 ÷ 38,238 = 0.35
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Keurig Dr Pepper Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets
Keurig Dr Pepper Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Short-term borrowings and current portion of long-term obligations | 304) | 2,345) | 1,593) | 1,458) | |
| Current finance lease liability | 79) | 44) | 41) | 26) | |
| Long-term obligations, excluding current portion | 11,578) | 11,143) | 12,827) | 14,201) | |
| Non-current finance lease liability | 621) | 298) | 269) | 305) | |
| Total debt | 12,582) | 13,830) | 14,730) | 15,990) | |
| Total assets | 50,598) | 49,779) | 49,518) | 48,918) | |
| Solvency Ratio | |||||
| Debt to assets1 | 0.25 | 0.28 | 0.30 | 0.33 | |
| Benchmarks | |||||
| Debt to Assets, Competitors2 | |||||
| Coca-Cola Co. | 0.45 | 0.49 | 0.50 | — | |
| Mondelēz International Inc. | 0.29 | 0.30 | 0.29 | — | |
| PepsiCo Inc. | 0.44 | 0.48 | 0.41 | — | |
| Philip Morris International Inc. | 0.67 | 0.70 | 0.72 | — | |
| Debt to Assets, Sector | |||||
| Food, Beverage & Tobacco | 0.44 | 0.47 | — | — | |
| Debt to Assets, Industry | |||||
| Consumer Staples | 0.30 | 0.33 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 12,582 ÷ 50,598 = 0.25
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. | Keurig Dr Pepper Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets (including Operating Lease Liability)
Keurig Dr Pepper Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Short-term borrowings and current portion of long-term obligations | 304) | 2,345) | 1,593) | 1,458) | |
| Current finance lease liability | 79) | 44) | 41) | 26) | |
| Long-term obligations, excluding current portion | 11,578) | 11,143) | 12,827) | 14,201) | |
| Non-current finance lease liability | 621) | 298) | 269) | 305) | |
| Total debt | 12,582) | 13,830) | 14,730) | 15,990) | |
| Current operating lease liability | 76) | 72) | 69) | —) | |
| Non-current operating lease liability | 608) | 580) | 427) | —) | |
| Total debt (including operating lease liability) | 13,266) | 14,482) | 15,226) | 15,990) | |
| Total assets | 50,598) | 49,779) | 49,518) | 48,918) | |
| Solvency Ratio | |||||
| Debt to assets (including operating lease liability)1 | 0.26 | 0.29 | 0.31 | 0.33 | |
| Benchmarks | |||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||
| Coca-Cola Co. | 0.47 | 0.51 | 0.51 | — | |
| Mondelēz International Inc. | 0.30 | 0.31 | 0.29 | — | |
| PepsiCo Inc. | 0.46 | 0.49 | 0.43 | — | |
| Philip Morris International Inc. | 0.69 | 0.72 | 0.74 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||
| Food, Beverage & Tobacco | 0.46 | 0.49 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||
| Consumer Staples | 0.33 | 0.37 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 13,266 ÷ 50,598 = 0.26
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Keurig Dr Pepper Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Financial Leverage
Keurig Dr Pepper Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Total assets | 50,598) | 49,779) | 49,518) | 48,918) | |
| Stockholders’ equity | 24,972) | 23,829) | 23,257) | 22,533) | |
| Solvency Ratio | |||||
| Financial leverage1 | 2.03 | 2.09 | 2.13 | 2.17 | |
| Benchmarks | |||||
| Financial Leverage, Competitors2 | |||||
| Coca-Cola Co. | 4.10 | 4.52 | 4.55 | — | |
| Mondelēz International Inc. | 2.37 | 2.46 | 2.37 | — | |
| PepsiCo Inc. | 5.76 | 6.91 | 5.31 | — | |
| Philip Morris International Inc. | — | — | — | — | |
| Financial Leverage, Sector | |||||
| Food, Beverage & Tobacco | 5.16 | 6.13 | — | — | |
| Financial Leverage, Industry | |||||
| Consumer Staples | 3.59 | 3.76 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 50,598 ÷ 24,972 = 2.03
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. | Keurig Dr Pepper Inc. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021. |
Interest Coverage
Keurig Dr Pepper Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income attributable to KDP | 2,146) | 1,325) | 1,254) | 586) | |
| Add: Net income attributable to noncontrolling interest | (1) | —) | —) | 3) | |
| Add: Income tax expense | 653) | 428) | 440) | 202) | |
| Add: Interest expense | 500) | 604) | 654) | 452) | |
| Earnings before interest and tax (EBIT) | 3,298) | 2,357) | 2,348) | 1,243) | |
| Solvency Ratio | |||||
| Interest coverage1 | 6.60 | 3.90 | 3.59 | 2.75 | |
| Benchmarks | |||||
| Interest Coverage, Competitors2 | |||||
| Coca-Cola Co. | 8.78 | 7.78 | 12.40 | — | |
| Mondelēz International Inc. | 16.08 | 12.33 | 9.03 | — | |
| PepsiCo Inc. | 5.94 | 8.24 | 9.20 | — | |
| Philip Morris International Inc. | 17.80 | 16.07 | 13.59 | — | |
| Interest Coverage, Sector | |||||
| Food, Beverage & Tobacco | 9.56 | 10.01 | — | — | |
| Interest Coverage, Industry | |||||
| Consumer Staples | 11.46 | 11.62 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,298 ÷ 500 = 6.60
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. | Keurig Dr Pepper Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Fixed Charge Coverage
Keurig Dr Pepper Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income attributable to KDP | 2,146) | 1,325) | 1,254) | 586) | |
| Add: Net income attributable to noncontrolling interest | (1) | —) | —) | 3) | |
| Add: Income tax expense | 653) | 428) | 440) | 202) | |
| Add: Interest expense | 500) | 604) | 654) | 452) | |
| Earnings before interest and tax (EBIT) | 3,298) | 2,357) | 2,348) | 1,243) | |
| Add: Operating lease cost | 121) | 113) | 82) | 48) | |
| Earnings before fixed charges and tax | 3,419) | 2,470) | 2,430) | 1,291) | |
| Interest expense | 500) | 604) | 654) | 452) | |
| Operating lease cost | 121) | 113) | 82) | 48) | |
| Fixed charges | 621) | 717) | 736) | 500) | |
| Solvency Ratio | |||||
| Fixed charge coverage1 | 5.51 | 3.44 | 3.30 | 2.58 | |
| Benchmarks | |||||
| Fixed Charge Coverage, Competitors2 | |||||
| Coca-Cola Co. | 7.41 | 6.45 | 9.47 | — | |
| Mondelēz International Inc. | 10.28 | 8.27 | 6.51 | — | |
| PepsiCo Inc. | 4.85 | 6.06 | 6.79 | — | |
| Philip Morris International Inc. | 13.43 | 11.50 | 9.88 | — | |
| Fixed Charge Coverage, Sector | |||||
| Food, Beverage & Tobacco | 7.60 | 7.54 | — | — | |
| Fixed Charge Coverage, Industry | |||||
| Consumer Staples | 7.46 | 7.19 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,419 ÷ 621 = 5.51
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. | Keurig Dr Pepper Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |