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)
Yahoo! Inc., solvency ratios
Based on: 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), 10-K (reporting date: 2012-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Yahoo! Inc. debt to equity ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Yahoo! Inc. debt to capital ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Yahoo! Inc. debt to assets ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Yahoo! Inc. financial leverage ratio decreased from 2014 to 2015 and from 2015 to 2016. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Yahoo! Inc. interest coverage ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Yahoo! Inc. fixed charge coverage ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
Debt to Equity
Yahoo! Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes | 1,299,945) | 1,233,485) | 1,170,423) | 1,110,585) | —) | |
| Net lease obligations | 23,000) | 33,000) | 47,000) | 44,000) | 37,000) | |
| Total debt | 1,322,945) | 1,266,485) | 1,217,423) | 1,154,585) | 37,000) | |
| Total Yahoo! Inc. stockholders’ equity | 31,049,283) | 29,043,537) | 38,741,837) | 13,074,909) | 14,560,200) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.04 | 0.04 | 0.03 | 0.09 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palantir Technologies Inc. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys Inc. | — | — | — | — | — | |
| Workday Inc. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Debt to equity = Total debt ÷ Total Yahoo! Inc. stockholders’ equity
= 1,322,945 ÷ 31,049,283 = 0.04
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. | Yahoo! Inc. debt to equity ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
Debt to Capital
Yahoo! Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes | 1,299,945) | 1,233,485) | 1,170,423) | 1,110,585) | —) | |
| Net lease obligations | 23,000) | 33,000) | 47,000) | 44,000) | 37,000) | |
| Total debt | 1,322,945) | 1,266,485) | 1,217,423) | 1,154,585) | 37,000) | |
| Total Yahoo! Inc. stockholders’ equity | 31,049,283) | 29,043,537) | 38,741,837) | 13,074,909) | 14,560,200) | |
| Total capital | 32,372,228) | 30,310,022) | 39,959,260) | 14,229,494) | 14,597,200) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.04 | 0.04 | 0.03 | 0.08 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palantir Technologies Inc. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys Inc. | — | — | — | — | — | |
| Workday Inc. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Debt to capital = Total debt ÷ Total capital
= 1,322,945 ÷ 32,372,228 = 0.04
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. | Yahoo! Inc. debt to capital ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
Debt to Assets
Yahoo! Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes | 1,299,945) | 1,233,485) | 1,170,423) | 1,110,585) | —) | |
| Net lease obligations | 23,000) | 33,000) | 47,000) | 44,000) | 37,000) | |
| Total debt | 1,322,945) | 1,266,485) | 1,217,423) | 1,154,585) | 37,000) | |
| Total assets | 48,083,079) | 45,203,966) | 61,960,344) | 16,804,959) | 17,103,253) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.03 | 0.03 | 0.02 | 0.07 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palantir Technologies Inc. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys Inc. | — | — | — | — | — | |
| Workday Inc. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Debt to assets = Total debt ÷ Total assets
= 1,322,945 ÷ 48,083,079 = 0.03
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. | Yahoo! Inc. debt to assets ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
Financial Leverage
Yahoo! Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 48,083,079) | 45,203,966) | 61,960,344) | 16,804,959) | 17,103,253) | |
| Total Yahoo! Inc. stockholders’ equity | 31,049,283) | 29,043,537) | 38,741,837) | 13,074,909) | 14,560,200) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.55 | 1.56 | 1.60 | 1.29 | 1.17 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palantir Technologies Inc. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys Inc. | — | — | — | — | — | |
| Workday Inc. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Financial leverage = Total assets ÷ Total Yahoo! Inc. stockholders’ equity
= 48,083,079 ÷ 31,049,283 = 1.55
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. | Yahoo! Inc. financial leverage ratio decreased from 2014 to 2015 and from 2015 to 2016. |
Interest Coverage
Yahoo! Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) attributable to Yahoo! Inc. | (214,321) | (4,359,082) | 7,521,731) | 1,366,281) | 3,945,479) | |
| Add: Net income attributable to noncontrolling interest | 4,858) | 7,975) | 10,411) | 10,285) | 5,123) | |
| Add: Income tax expense | (126,228) | (89,598) | 4,038,102) | 153,392) | 1,940,043) | |
| Add: Interest expense | 73,783) | 71,865) | 68,851) | 14,319) | 9,297) | |
| Earnings before interest and tax (EBIT) | (261,908) | (4,368,840) | 11,639,095) | 1,544,277) | 5,899,942) | |
| Solvency Ratio | ||||||
| Interest coverage1 | -3.55 | -60.79 | 169.05 | 107.85 | 634.61 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palantir Technologies Inc. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys Inc. | — | — | — | — | — | |
| Workday Inc. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Interest coverage = EBIT ÷ Interest expense
= -261,908 ÷ 73,783 = -3.55
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. | Yahoo! Inc. interest coverage ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
Fixed Charge Coverage
Yahoo! Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) attributable to Yahoo! Inc. | (214,321) | (4,359,082) | 7,521,731) | 1,366,281) | 3,945,479) | |
| Add: Net income attributable to noncontrolling interest | 4,858) | 7,975) | 10,411) | 10,285) | 5,123) | |
| Add: Income tax expense | (126,228) | (89,598) | 4,038,102) | 153,392) | 1,940,043) | |
| Add: Interest expense | 73,783) | 71,865) | 68,851) | 14,319) | 9,297) | |
| Earnings before interest and tax (EBIT) | (261,908) | (4,368,840) | 11,639,095) | 1,544,277) | 5,899,942) | |
| Add: Rent expense for all operating leases | 60,000) | 77,000) | 86,000) | 77,000) | 76,000) | |
| Earnings before fixed charges and tax | (201,908) | (4,291,840) | 11,725,095) | 1,621,277) | 5,975,942) | |
| Interest expense | 73,783) | 71,865) | 68,851) | 14,319) | 9,297) | |
| Rent expense for all operating leases | 60,000) | 77,000) | 86,000) | 77,000) | 76,000) | |
| Fixed charges | 133,783) | 148,865) | 154,851) | 91,319) | 85,297) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | -1.51 | -28.83 | 75.72 | 17.75 | 70.06 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palantir Technologies Inc. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys Inc. | — | — | — | — | — | |
| Workday Inc. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= -201,908 ÷ 133,783 = -1.51
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. | Yahoo! Inc. fixed charge coverage ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |