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)
AmerisourceBergen Corp., solvency ratios
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
The financial data reveals several notable trends and fluctuations in the company's leverage, debt management, and coverage ratios over the examined periods.
- Debt to Equity Ratios
- The debt to equity ratio showed a slight decreasing trend from 1.67 in 2017 to 1.45 in 2019, indicating a modest reduction in reliance on debt relative to equity during this period. However, there is a significant spike noted in 2021 where the ratio dramatically increased to 29.93, suggesting a substantial increase in debt relative to equity or a significant reduction in equity base. The debt to equity ratio that includes operating lease liabilities follows a similar pattern with a peak of 34.95 in 2021, reinforcing the observation of increased leverage when lease obligations are considered.
- Debt to Capital Ratios
- The debt to capital ratios, with and without operating lease liabilities, generally display moderate fluctuations. The ratio decreased gradually from 0.63 in 2017 to 0.59 in 2019, but in 2020 there was a notable increase to 1.33 (without leases) and 1.28 (with leases), indicating a considerable rise in the company's debt relative to total capital. Following this, the ratios decreased again to around 0.97 to 1.04 in 2021 and 2022, suggesting some stabilization in capital structure though still elevated compared to earlier years.
- Debt to Assets Ratios
- These ratios remained fairly stable across the years, oscillating narrowly between 0.09 and 0.14. Inclusion of operating lease liabilities slightly elevated the ratios but did not result in dramatic changes, indicating a generally consistent proportion of debt relative to total assets throughout the periods.
- Financial Leverage
- Financial leverage significantly declined from 17.11 in 2017 to around 12.84-13.61 in 2018-2019, showing reduced leverage. However, it shows an extraordinary increase in 2021 to 256.71, which is an anomaly indicating either a change in accounting treatment, a substantial increase in total assets financed by debt, or a sharp decrease in equity. No data is available for 2020 and 2022 for this metric.
- Interest Coverage
- The company's ability to cover interest expenses with earnings fluctuated during the period. Interest coverage was steady around 7.1 to 7.2 in 2017-2018 but declined to 5.95 in 2019. In 2020, the ratio turned negative (-32.39), suggesting operating losses or insufficient earnings to meet interest obligations during that challenging year. Recovery is observed in subsequent years with ratios of 13.17 in 2021 and 10.41 in 2022, indicating improved earnings relative to interest expenses.
- Fixed Charge Coverage
- Fixed charge coverage also mirrors the pattern of interest coverage. It declined from 5.0 in 2017 to 4.18 in 2019, then turned negative (-18.13) in 2020, reflecting difficulties in meeting fixed charges during that year. Improvement is seen in 2021 and 2022, reaching 7.47 and 5.82 respectively, consistent with the recovery in interest coverage and suggesting better capacity to fulfill fixed financial obligations.
Debt Ratios
Coverage Ratios
Debt to Equity
AmerisourceBergen Corp., debt to equity calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Short-term debt | 1,070,473) | 300,213) | 501,259) | 139,012) | 151,657) | 12,121) | |
| Long-term debt, net of current portion | 4,632,360) | 6,383,711) | 3,618,261) | 4,033,880) | 4,158,532) | 3,429,934) | |
| Total debt | 5,702,833) | 6,683,924) | 4,119,520) | 4,172,892) | 4,310,189) | 3,442,055) | |
| Total AmerisourceBergen Corporation stockholders’ equity (deficit) | (211,559) | 223,354) | (1,018,924) | 2,878,917) | 2,932,824) | 2,064,461) | |
| Solvency Ratio | |||||||
| Debt to equity1 | — | 29.93 | — | 1.45 | 1.47 | 1.67 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Abbott Laboratories | 0.46 | 0.50 | 0.57 | — | — | — | |
| CVS Health Corp. | 0.74 | 0.75 | 0.93 | — | — | — | |
| Elevance Health Inc. | 0.66 | 0.64 | 0.60 | — | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | — | — | — | |
| Medtronic PLC | 0.46 | 0.51 | 0.49 | — | — | — | |
| UnitedHealth Group Inc. | 0.74 | 0.64 | 0.66 | — | — | — | |
| Debt to Equity, Sector | |||||||
| Health Care Equipment & Services | 0.61 | 0.60 | 0.66 | — | — | — | |
| Debt to Equity, Industry | |||||||
| Health Care | 0.73 | 0.79 | 0.92 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
1 2022 Calculation
Debt to equity = Total debt ÷ Total AmerisourceBergen Corporation stockholders’ equity (deficit)
= 5,702,833 ÷ -211,559 = —
2 Click competitor name to see calculations.
The financial data reveals notable shifts in debt and equity structure over the analyzed period. Total debt exhibited an overall upward trend from 2017 through 2021, increasing from approximately $3.44 billion to a peak of about $6.68 billion. However, in 2022, total debt decreased to roughly $5.70 billion, indicating a reduction in leverage after the previous year’s significant rise.
Stockholders’ equity demonstrated considerable volatility and a marked deterioration starting in 2020. From 2017 to 2019, equity levels were positive and generally stable, maintaining values close to $2.0-$2.9 billion. However, in 2020, equity turned negative, reaching approximately -$1.02 billion, followed by a partial recovery to a positive $223 million in 2021, and then falling back to a negative position near -$212 million in 2022. These fluctuations signal instability in net asset value and potential challenges in capital adequacy during the latter years.
The debt to equity ratio further underscores significant financial strain. Initially, this ratio decreased slightly from 1.67 in 2017 to 1.45 in 2019, suggesting a marginal improvement in leveraging relative to equity. Data for 2020 is missing, but in 2021, the ratio surged dramatically to nearly 30, highlighting an extreme imbalance caused by the drastic decline in equity rather than an equivalent increase in debt. The absence of data for 2022 restricts further analysis for that year.
- Total Debt
- Increased steadily from 2017 to 2021, peaking in 2021, before declining significantly in 2022.
- Stockholders’ Equity
- Stable positive values until 2019, then a sharp decline into negative territory in 2020, some recovery in 2021, followed by another dip into negative in 2022.
- Debt to Equity Ratio
- Improved slightly from 2017 to 2019, then escalated drastically in 2021 due to collapsing equity, reflecting increased financial risk.
In summary, the data reflect an increasingly leveraged position alongside volatile and generally weakening equity values, culminating in a significant erosion of net worth by 2020. This trend is temporarily interrupted by a modest equity recovery in 2021 but resumes the negative pattern in 2022. The substantial rise in debt relative to equity in 2021 denotes elevated financial leverage risk requiring close monitoring.
Debt to Equity (including Operating Lease Liability)
AmerisourceBergen Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Short-term debt | 1,070,473) | 300,213) | 501,259) | 139,012) | 151,657) | 12,121) | |
| Long-term debt, net of current portion | 4,632,360) | 6,383,711) | 3,618,261) | 4,033,880) | 4,158,532) | 3,429,934) | |
| Total debt | 5,702,833) | 6,683,924) | 4,119,520) | 4,172,892) | 4,310,189) | 3,442,055) | |
| Operating lease liabilities (included in Accrued expenses and other) | 158,184) | 175,352) | 92,587) | —) | —) | —) | |
| Operating lease liabilities (included in Other long-term liabilities) | 864,288) | 946,155) | 385,507) | —) | —) | —) | |
| Total debt (including operating lease liability) | 6,725,305) | 7,805,431) | 4,597,614) | 4,172,892) | 4,310,189) | 3,442,055) | |
| Total AmerisourceBergen Corporation stockholders’ equity (deficit) | (211,559) | 223,354) | (1,018,924) | 2,878,917) | 2,932,824) | 2,064,461) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | — | 34.95 | — | 1.45 | 1.47 | 1.67 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Abbott Laboratories | 0.49 | 0.54 | 0.61 | — | — | — | |
| CVS Health Corp. | 1.00 | 1.01 | 1.23 | — | — | — | |
| Elevance Health Inc. | 0.69 | 0.67 | 0.63 | — | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | — | — | — | |
| Medtronic PLC | 0.48 | 0.53 | 0.51 | — | — | — | |
| UnitedHealth Group Inc. | 0.80 | 0.70 | 0.73 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Health Care Equipment & Services | 0.71 | 0.70 | 0.76 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Health Care | 0.78 | 0.85 | 0.98 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total AmerisourceBergen Corporation stockholders’ equity (deficit)
= 6,725,305 ÷ -211,559 = —
2 Click competitor name to see calculations.
The financial data reveals significant fluctuations in both the total debt and stockholders' equity over the examined periods, highlighting notable variations in the company's capital structure and financial leverage.
- Total Debt (including operating lease liability)
- The total debt exhibited a gradual upward trend from 2017 through 2021, increasing from approximately $3.44 billion to a peak of around $7.81 billion in 2021. This rise suggests an expanding reliance on debt financing during this period. However, in 2022, the total debt decreased to about $6.73 billion, indicating a partial reduction in debt obligations after the peak year.
- Stockholders’ Equity
- Stockholders' equity showed initial growth from approximately $2.06 billion in 2017 to about $2.93 billion in 2018, followed by a slight decrease in 2019. A significant change occurred in 2020, where equity sharply declined to a negative value of approximately -$1.02 billion, signaling a substantial erosion of net assets. Although there was a modest recovery in 2021 to $223 million, equity again fell into a negative figure in 2022, recording around -$212 thousand. This volatility and negative equity positions imply financial distress or substantial losses during these periods.
- Debt to Equity Ratio
- The debt-to-equity ratio, incorporating lease liabilities, indicated a relatively stable and moderate leverage position between 2017 and 2019, with values around 1.45 to 1.67. An exact figure for 2020 is unavailable, but a dramatic increase is evident in 2021 when the ratio surged to approximately 34.95, reflecting the combined effect of increased debt and sharply reduced equity. The ratio for 2022 is not provided, but given the negative equity, the ratio might be affected significantly.
Overall, the data points to a period of increasing debt burden accompanied by substantial declines in equity, particularly marked in 2020 and 2022. These changes suggest heightened financial risk and potential solvency concerns, emphasizing the importance of closely monitoring capital structure and equity levels going forward.
Debt to Capital
AmerisourceBergen Corp., debt to capital calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Short-term debt | 1,070,473) | 300,213) | 501,259) | 139,012) | 151,657) | 12,121) | |
| Long-term debt, net of current portion | 4,632,360) | 6,383,711) | 3,618,261) | 4,033,880) | 4,158,532) | 3,429,934) | |
| Total debt | 5,702,833) | 6,683,924) | 4,119,520) | 4,172,892) | 4,310,189) | 3,442,055) | |
| Total AmerisourceBergen Corporation stockholders’ equity (deficit) | (211,559) | 223,354) | (1,018,924) | 2,878,917) | 2,932,824) | 2,064,461) | |
| Total capital | 5,491,274) | 6,907,278) | 3,100,596) | 7,051,809) | 7,243,013) | 5,506,516) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 1.04 | 0.97 | 1.33 | 0.59 | 0.60 | 0.63 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Abbott Laboratories | 0.31 | 0.34 | 0.36 | — | — | — | |
| CVS Health Corp. | 0.42 | 0.43 | 0.48 | — | — | — | |
| Elevance Health Inc. | 0.40 | 0.39 | 0.38 | — | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | — | — | — | |
| Medtronic PLC | 0.31 | 0.34 | 0.33 | — | — | — | |
| UnitedHealth Group Inc. | 0.43 | 0.39 | 0.40 | — | — | — | |
| Debt to Capital, Sector | |||||||
| Health Care Equipment & Services | 0.38 | 0.38 | 0.40 | — | — | — | |
| Debt to Capital, Industry | |||||||
| Health Care | 0.42 | 0.44 | 0.48 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,702,833 ÷ 5,491,274 = 1.04
2 Click competitor name to see calculations.
The financial data over the six-year period reveals notable fluctuations in the company’s debt and capital structure. Total debt showed an overall increasing trend from 2017 through 2021, rising from approximately 3.44 billion US dollars in 2017 to a peak near 6.68 billion US dollars in 2021. Following this peak, total debt decreased to about 5.70 billion US dollars in 2022.
Total capital exhibits a more volatile pattern. It increased from 5.51 billion US dollars in 2017 to a high of around 7.24 billion US dollars in 2018, then slightly declined in 2019. A significant drop occurred in 2020, with capital almost halving to approximately 3.10 billion US dollars. However, in 2021 the figure rebounded close to previous highs before declining again in 2022 to just below 5.50 billion US dollars.
The debt to capital ratio provides insight into the leverage dynamics over the years. Initially, the ratio decreased slightly from 0.63 in 2017 to 0.59 in 2019, suggesting a modest reduction in leverage relative to capital. However, 2020 marked a sharp increase in the ratio to 1.33, indicating debt levels exceeded total capital, which could signal increased financial risk or a strategic shift in capital structure. Though the ratio declined somewhat in 2021 to 0.97, it rose again to 1.04 in 2022, maintaining leverage above total capital.
- Total Debt
- Demonstrates an increasing trend from 2017 to 2021, peaking in 2021, followed by a reduction in 2022.
- Total Capital
- Shows volatility with growth till 2018, a significant drop in 2020, recovery in 2021, and a decline again in 2022.
- Debt to Capital Ratio
- Declined slightly till 2019, spiked sharply in 2020 above 1, indicating higher leverage, then somewhat stabilized but remained above 1 in 2022.
Overall, the data suggests a period of increasing leverage and financial restructuring, particularly evident in the sharp rise of the debt-to-capital ratio during 2020. The elevated leverage post-2020 indicates heightened financial risk or strategic debt utilization that warrants ongoing monitoring.
Debt to Capital (including Operating Lease Liability)
AmerisourceBergen Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Short-term debt | 1,070,473) | 300,213) | 501,259) | 139,012) | 151,657) | 12,121) | |
| Long-term debt, net of current portion | 4,632,360) | 6,383,711) | 3,618,261) | 4,033,880) | 4,158,532) | 3,429,934) | |
| Total debt | 5,702,833) | 6,683,924) | 4,119,520) | 4,172,892) | 4,310,189) | 3,442,055) | |
| Operating lease liabilities (included in Accrued expenses and other) | 158,184) | 175,352) | 92,587) | —) | —) | —) | |
| Operating lease liabilities (included in Other long-term liabilities) | 864,288) | 946,155) | 385,507) | —) | —) | —) | |
| Total debt (including operating lease liability) | 6,725,305) | 7,805,431) | 4,597,614) | 4,172,892) | 4,310,189) | 3,442,055) | |
| Total AmerisourceBergen Corporation stockholders’ equity (deficit) | (211,559) | 223,354) | (1,018,924) | 2,878,917) | 2,932,824) | 2,064,461) | |
| Total capital (including operating lease liability) | 6,513,746) | 8,028,785) | 3,578,690) | 7,051,809) | 7,243,013) | 5,506,516) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 1.03 | 0.97 | 1.28 | 0.59 | 0.60 | 0.63 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Abbott Laboratories | 0.33 | 0.35 | 0.38 | — | — | — | |
| CVS Health Corp. | 0.50 | 0.50 | 0.55 | — | — | — | |
| Elevance Health Inc. | 0.41 | 0.40 | 0.39 | — | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | — | — | — | |
| Medtronic PLC | 0.32 | 0.35 | 0.34 | — | — | — | |
| UnitedHealth Group Inc. | 0.45 | 0.41 | 0.42 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Health Care Equipment & Services | 0.41 | 0.41 | 0.43 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Health Care | 0.44 | 0.46 | 0.50 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 6,725,305 ÷ 6,513,746 = 1.03
2 Click competitor name to see calculations.
The financial data reveals notable trends in the company's capital structure and debt management over the analyzed period.
- Total debt (including operating lease liability)
- There is a general upward trend in total debt from 2017 to 2022, with the exception of a slight decline in 2019 and again in 2022. The total debt increased from approximately 3.4 billion US dollars in 2017 to a peak exceeding 7.8 billion US dollars in 2021, followed by a reduction to around 6.7 billion in 2022. This suggests an overall increase in leverage, particularly marked in 2021.
- Total capital (including operating lease liability)
- Total capital also increased overall but experienced significant volatility. Starting at about 5.5 billion US dollars in 2017, it rose to around 7.2 billion by 2018 and remained close to this level in 2019. However, there was a sharp decline in 2020 to approximately 3.6 billion, followed by a rebound to nearly 8 billion in 2021, then a decrease again to roughly 6.5 billion in 2022. This fluctuation indicates changes in the firm's financing mix and possibly asset base or equity changes.
- Debt to capital ratio (including operating lease liability)
- The debt to capital ratio demonstrates significant variability over the period. It started at 0.63 in 2017, gradually decreasing to 0.59 by 2019, reflecting a relatively stable and moderately leveraged position. However, in 2020, the ratio surged dramatically to 1.28, signaling that total debt exceeded total capital, indicating excessive leverage or capital erosion. In subsequent years, the ratio decreased somewhat but remained elevated at 0.97 in 2021 and slightly increased to 1.03 in 2022. This suggests that the company maintained a high leverage position during these years, which could pose higher financial risk.
Overall, the data depicts a company that significantly increased its debt levels over the period with notable volatility in total capital. The sharp rise in the debt to capital ratio in 2020 and its persistence above 0.9 thereafter indicate increased financial leverage and potential vulnerability to financial stress. The fluctuations in total capital suggest changes in equity or asset composition that merit further investigation to understand underlying causes and implications for financial stability.
Debt to Assets
AmerisourceBergen Corp., debt to assets calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Short-term debt | 1,070,473) | 300,213) | 501,259) | 139,012) | 151,657) | 12,121) | |
| Long-term debt, net of current portion | 4,632,360) | 6,383,711) | 3,618,261) | 4,033,880) | 4,158,532) | 3,429,934) | |
| Total debt | 5,702,833) | 6,683,924) | 4,119,520) | 4,172,892) | 4,310,189) | 3,442,055) | |
| Total assets | 56,560,616) | 57,337,805) | 44,274,830) | 39,171,980) | 37,669,838) | 35,316,470) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.10 | 0.12 | 0.09 | 0.11 | 0.11 | 0.10 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Abbott Laboratories | 0.23 | 0.24 | 0.26 | — | — | — | |
| CVS Health Corp. | 0.23 | 0.24 | 0.28 | — | — | — | |
| Elevance Health Inc. | 0.23 | 0.24 | 0.23 | — | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | — | — | — | |
| Medtronic PLC | 0.27 | 0.28 | 0.27 | — | — | — | |
| UnitedHealth Group Inc. | 0.23 | 0.22 | 0.22 | — | — | — | |
| Debt to Assets, Sector | |||||||
| Health Care Equipment & Services | 0.23 | 0.23 | 0.25 | — | — | — | |
| Debt to Assets, Industry | |||||||
| Health Care | 0.28 | 0.29 | 0.31 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 5,702,833 ÷ 56,560,616 = 0.10
2 Click competitor name to see calculations.
The analysis of the financial data over the six-year period reveals several notable trends in the company's debt and asset structure.
- Total Debt
-
Total debt showed a general upward trajectory from 2017 through 2021, starting at approximately $3.44 billion and reaching a peak of about $6.68 billion in 2021. However, there was a decline in total debt in 2022, decreasing to around $5.70 billion. This indicates a period of increased leveraging until 2021, followed by a reduction in debt levels in the most recent year available.
- Total Assets
-
Total assets consistently increased throughout the observed period, rising from roughly $35.32 billion in 2017 to a peak of approximately $57.34 billion in 2021. In 2022, total assets saw a slight decrease to approximately $56.56 billion but remained significantly higher than earlier years. This reflects sustained asset growth with a minor contraction towards the end of the period.
- Debt to Assets Ratio
-
The debt to assets ratio remained relatively stable and low, fluctuating narrowly between 0.09 and 0.12. It started at 0.10 in 2017, increased modestly to 0.11 in 2018 and 2019, dropped to 0.09 in 2020, rose again to 0.12 in 2021 at the peak of indebtedness, and then decreased to 0.10 in 2022. These values suggest the company has maintained a conservative leverage position relative to its asset base throughout the period, managing to balance growth in debt with proportionate asset increases.
Overall, the data indicates that the company expanded its asset base steadily while managing its debt levels prudently. Although total debt rose substantially until 2021, the proportionate increase in assets kept the leverage ratio fairly constant and within a moderate range. The reduction in debt in the final year may reflect strategic deleveraging or improved cash flow management, while the slight dip in assets in 2022 warrants monitoring to assess if it indicates a broader trend or temporary fluctuation.
Debt to Assets (including Operating Lease Liability)
AmerisourceBergen Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Short-term debt | 1,070,473) | 300,213) | 501,259) | 139,012) | 151,657) | 12,121) | |
| Long-term debt, net of current portion | 4,632,360) | 6,383,711) | 3,618,261) | 4,033,880) | 4,158,532) | 3,429,934) | |
| Total debt | 5,702,833) | 6,683,924) | 4,119,520) | 4,172,892) | 4,310,189) | 3,442,055) | |
| Operating lease liabilities (included in Accrued expenses and other) | 158,184) | 175,352) | 92,587) | —) | —) | —) | |
| Operating lease liabilities (included in Other long-term liabilities) | 864,288) | 946,155) | 385,507) | —) | —) | —) | |
| Total debt (including operating lease liability) | 6,725,305) | 7,805,431) | 4,597,614) | 4,172,892) | 4,310,189) | 3,442,055) | |
| Total assets | 56,560,616) | 57,337,805) | 44,274,830) | 39,171,980) | 37,669,838) | 35,316,470) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.12 | 0.14 | 0.10 | 0.11 | 0.11 | 0.10 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Abbott Laboratories | 0.24 | 0.26 | 0.27 | — | — | — | |
| CVS Health Corp. | 0.31 | 0.33 | 0.37 | — | — | — | |
| Elevance Health Inc. | 0.24 | 0.25 | 0.24 | — | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | — | — | — | |
| Medtronic PLC | 0.27 | 0.29 | 0.28 | — | — | — | |
| UnitedHealth Group Inc. | 0.25 | 0.24 | 0.24 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Health Care Equipment & Services | 0.27 | 0.27 | 0.29 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Health Care | 0.30 | 0.31 | 0.34 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 6,725,305 ÷ 56,560,616 = 0.12
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt exhibited an overall increasing trend from 2017 through 2021, rising from approximately $3.44 billion to $7.81 billion. This represents more than a twofold increase over this period. However, in 2022, there was a noticeable decline to about $6.73 billion, indicating some reduction in debt levels after the peak in 2021.
- Total assets
- Total assets showed a consistent growth pattern over the entire period analyzed. Starting at approximately $35.3 billion in 2017, assets increased steadily each year to reach a peak of $57.3 billion in 2021. In 2022, there was a slight decrease to approximately $56.6 billion, but overall assets remained significantly higher compared to earlier years.
- Debt to assets (including operating lease liability)
- The debt to assets ratio remained relatively stable between 0.10 and 0.14 throughout the period. It started at 0.10 in 2017, experienced a minor increase to 0.11 in 2018 and 2019, dropped back to 0.10 in 2020, then increased to its highest point of 0.14 in 2021. In 2022, this ratio declined to 0.12. This fluctuation reflects the interplay between rising debt and asset growth, with debt levels growing faster than assets particularly in 2021 before adjusting downward in 2022.
Financial Leverage
AmerisourceBergen Corp., financial leverage calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Total assets | 56,560,616) | 57,337,805) | 44,274,830) | 39,171,980) | 37,669,838) | 35,316,470) | |
| Total AmerisourceBergen Corporation stockholders’ equity (deficit) | (211,559) | 223,354) | (1,018,924) | 2,878,917) | 2,932,824) | 2,064,461) | |
| Solvency Ratio | |||||||
| Financial leverage1 | — | 256.71 | — | 13.61 | 12.84 | 17.11 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Abbott Laboratories | 2.03 | 2.10 | 2.21 | — | — | — | |
| CVS Health Corp. | 3.21 | 3.10 | 3.32 | — | — | — | |
| Elevance Health Inc. | 2.83 | 2.70 | 2.61 | — | — | — | |
| Intuitive Surgical Inc. | 1.17 | 1.14 | 1.15 | — | — | — | |
| Medtronic PLC | 1.73 | 1.81 | 1.79 | — | — | — | |
| UnitedHealth Group Inc. | 3.16 | 2.96 | 3.01 | — | — | — | |
| Financial Leverage, Sector | |||||||
| Health Care Equipment & Services | 2.65 | 2.57 | 2.64 | — | — | — | |
| Financial Leverage, Industry | |||||||
| Health Care | 2.63 | 2.74 | 2.93 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
1 2022 Calculation
Financial leverage = Total assets ÷ Total AmerisourceBergen Corporation stockholders’ equity (deficit)
= 56,560,616 ÷ -211,559 = —
2 Click competitor name to see calculations.
The financial data reveals several significant trends over the examined period. Total assets demonstrate a consistent upward trajectory from 2017 through 2021, increasing from approximately $35.3 billion to $57.3 billion, indicating substantial asset growth. However, in 2022, total assets experienced a slight decline to about $56.6 billion.
Shareholders’ equity exhibits more volatility during the same timeframe. From 2017 to 2019, equity increased from around $2.06 billion to nearly $2.88 billion, suggesting growth in the company’s net worth. Nevertheless, there is a marked shift in 2020, where equity turns negative to approximately -$1.02 billion, reversing to a positive $223 million in 2021, before falling negative again at about -$212 million in 2022. This fluctuation points to potential financial distress or significant changes in capital structure or retained earnings during these years.
The financial leverage ratio shows values of 17.11 in 2017, decreasing to 12.84 in 2018 and slightly increasing to 13.61 in 2019. However, data for 2020 is missing. Notably, in 2021, the ratio spikes dramatically to 256.71, indicating a substantial increase in leverage and a highly leveraged balance sheet, which may reflect increased borrowing or a decline in equity. The 2022 value is unavailable, preventing further assessment.
- Total Assets
- Consistent growth from 2017 to 2021, followed by a slight decline in 2022.
- Stockholders’ Equity
- Growth until 2019, sharp decline into negative territory in 2020, slight recovery in 2021, and falling negative again in 2022.
- Financial Leverage
- Moderate decrease through 2019, large spike in 2021, indicating increased borrowing or lower equity base; data gaps for 2020 and 2022.
Overall, the company has expanded its asset base significantly over the years but faces challenges as reflected in the fluctuating and often negative equity and the dramatic change in financial leverage, suggesting increased financial risk and potential reliance on debt financing.
Interest Coverage
AmerisourceBergen Corp., interest coverage calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) attributable to AmerisourceBergen Corporation | 1,698,820) | 1,539,932) | (3,408,716) | 855,365) | 1,658,405) | 364,484) | |
| Add: Net income attributable to noncontrolling interest | (32,280) | 4,676) | 9,158) | (1,230) | (42,513) | —) | |
| Add: Income tax expense | 516,517) | 677,251) | (1,894,273) | 112,971) | (438,469) | 553,403) | |
| Add: Interest expense | 231,982) | 182,544) | 158,522) | 195,474) | 189,640) | 149,042) | |
| Earnings before interest and tax (EBIT) | 2,415,039) | 2,404,403) | (5,135,309) | 1,162,580) | 1,367,063) | 1,066,929) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 10.41 | 13.17 | -32.39 | 5.95 | 7.21 | 7.16 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Abbott Laboratories | 15.89 | 16.41 | 10.10 | — | — | — | |
| CVS Health Corp. | 3.46 | 5.16 | 4.36 | — | — | — | |
| Elevance Health Inc. | 10.13 | 10.93 | 8.96 | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | — | |
| Medtronic PLC | 10.98 | 5.21 | 4.71 | — | — | — | |
| UnitedHealth Group Inc. | 13.59 | 14.44 | 13.47 | — | — | — | |
| Interest Coverage, Sector | |||||||
| Health Care Equipment & Services | 9.70 | 9.51 | 7.72 | — | — | — | |
| Interest Coverage, Industry | |||||||
| Health Care | 13.14 | 12.73 | 7.63 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,415,039 ÷ 231,982 = 10.41
2 Click competitor name to see calculations.
The data reveals notable fluctuations in the financial performance over the six years analyzed, particularly in earnings before interest and tax (EBIT), interest expense, and interest coverage ratio.
- Earnings before interest and tax (EBIT)
- The EBIT showed a general upward trend from 2017 to 2018, increasing from approximately 1.07 billion US dollars to 1.37 billion US dollars. However, in 2019, the EBIT declined to about 1.16 billion US dollars. A significant anomaly is observed in 2020, where EBIT sharply decreased to a negative figure of approximately -5.14 billion US dollars, indicating substantial operational challenges or extraordinary losses during that year. Following this downturn, EBIT rebounded strongly in 2021 to roughly 2.40 billion US dollars and remained almost stable in 2022 at around 2.42 billion US dollars, suggesting a recovery phase post-2020.
- Interest Expense
- Interest expense followed a general increasing trend over the period. Starting at roughly 149 million US dollars in 2017, it increased steadily each year, reaching nearly 232 million US dollars in 2022. The rise in interest expense was moderate compared to the volatile EBIT figures.
- Interest Coverage Ratio
- The interest coverage ratio remained relatively stable and healthy between 2017 and 2019, ranging from approximately 5.95 to 7.21. In 2020, however, the ratio plummeted to -32.39, reflecting the negative EBIT in that year and indicating that the company was unable to cover its interest expenses with operating profit. In the subsequent years, the ratio improved substantially, rising to 13.17 in 2021 and then declining moderately to 10.41 in 2022. These values suggest a recovery in operating profitability sufficient to cover interest obligations comfortably after 2020.
Overall, the analysis indicates a period of financial distress during 2020, impacting both operational profitability and the company's ability to cover interest costs. The subsequent recovery is evident in the restoration of positive EBIT and improved interest coverage ratios, although interest expenses have continued to rise steadily throughout the entire period.
Fixed Charge Coverage
AmerisourceBergen Corp., fixed charge coverage calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) attributable to AmerisourceBergen Corporation | 1,698,820) | 1,539,932) | (3,408,716) | 855,365) | 1,658,405) | 364,484) | |
| Add: Net income attributable to noncontrolling interest | (32,280) | 4,676) | 9,158) | (1,230) | (42,513) | —) | |
| Add: Income tax expense | 516,517) | 677,251) | (1,894,273) | 112,971) | (438,469) | 553,403) | |
| Add: Interest expense | 231,982) | 182,544) | 158,522) | 195,474) | 189,640) | 149,042) | |
| Earnings before interest and tax (EBIT) | 2,415,039) | 2,404,403) | (5,135,309) | 1,162,580) | 1,367,063) | 1,066,929) | |
| Add: Operating lease cost | 220,935) | 161,054) | 118,144) | 108,900) | 114,900) | 80,700) | |
| Earnings before fixed charges and tax | 2,635,974) | 2,565,457) | (5,017,165) | 1,271,480) | 1,481,963) | 1,147,629) | |
| Interest expense | 231,982) | 182,544) | 158,522) | 195,474) | 189,640) | 149,042) | |
| Operating lease cost | 220,935) | 161,054) | 118,144) | 108,900) | 114,900) | 80,700) | |
| Fixed charges | 452,917) | 343,598) | 276,666) | 304,374) | 304,540) | 229,742) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 5.82 | 7.47 | -18.13 | 4.18 | 4.87 | 5.00 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Abbott Laboratories | 10.10 | 10.21 | 6.68 | — | — | — | |
| CVS Health Corp. | 2.16 | 3.03 | 2.75 | — | — | — | |
| Elevance Health Inc. | 8.82 | 8.48 | 6.10 | — | — | — | |
| Intuitive Surgical Inc. | 63.52 | 93.66 | 58.48 | — | — | — | |
| Medtronic PLC | 7.79 | 4.31 | 3.98 | — | — | — | |
| UnitedHealth Group Inc. | 8.77 | 8.80 | 8.51 | — | — | — | |
| Fixed Charge Coverage, Sector | |||||||
| Health Care Equipment & Services | 6.01 | 5.90 | 4.97 | — | — | — | |
| Fixed Charge Coverage, Industry | |||||||
| Health Care | 9.15 | 8.86 | 5.56 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,635,974 ÷ 452,917 = 5.82
2 Click competitor name to see calculations.
The financial data reveals fluctuations in the company's earnings before fixed charges and tax over the six-year period. There is an initial increase from 1,147,629 thousand US dollars in 2017 to a peak of 1,481,963 thousand US dollars in 2018. This is followed by a decline to 1,271,480 thousand in 2019, and then a significant negative swing to -5,017,165 thousand in 2020. Subsequently, earnings recover sharply to 2,565,457 thousand in 2021 and show a marginal increase to 2,635,974 thousand in 2022.
Fixed charges exhibit a general upward trend over the period. Starting at 229,742 thousand in 2017, fixed charges increase to 304,540 thousand in 2018 and remain relatively stable near 304,374 thousand in 2019. A decrease is observed in 2020, with charges lowering to 276,666 thousand before rising significantly to 343,598 thousand in 2021 and further to 452,917 thousand in 2022.
Fixed charge coverage ratio, which measures the ability to cover fixed charges with earnings, reflects these earnings and charges trends. Beginning with a strong coverage ratio of 5.00 in 2017, there is a gradual decline to 4.87 in 2018 and 4.18 in 2019. In 2020, the ratio becomes negative at -18.13, coinciding with negative earnings before fixed charges and tax. The ratio then rebounds substantially to 7.47 in 2021 and decreases to 5.82 in 2022, indicating improved but fluctuating coverage capacity.
- Earnings Before Fixed Charges and Tax
- Displayed volatility with an exceptional decline in 2020 followed by recovery in subsequent years.
- Fixed Charges
- Generally increasing with a moderate dip in 2020 but rising notably in the last two years.
- Fixed Charge Coverage Ratio
- Correlates closely with earnings pattern, showing deterioration and negative coverage in 2020, followed by notable recovery but ongoing variability.
Overall, the data indicates a period of significant earnings disruption in 2020, likely related to external factors impacting the company’s operations. Despite rising fixed charges, the company managed to restore positive earnings and improve coverage ratios in the following years, although the coverage ratio remains below earlier peak levels. This suggests resilience but also highlights exposure to volatility in earnings relative to fixed obligations.