AmerisourceBergen Corp. (NYSE:ABC)

Debt to Equity Ratio

From December 2016 through June 2020, the debt to equity ratio exhibited moderate fluctuations within a range of approximately 1.07 to 1.95, indicating a stable leverage position relative to equity. However, starting in September 2020, the ratio shows an abrupt and highly irregular increase with extreme spikes, reaching values as high as 187.1 in December 2020. Following this peak, the ratio declines but remains volatile and elevated compared to previous periods, with values ranging from 7.32 to 29.93 between March 2021 and June 2023. These unusual spikes suggest possible substantial variations in equity or liabilities or the presence of one-time adjustments or reclassifications affecting this measure.

Debt to Capital Ratio

Between December 2016 and June 2020, the debt to capital ratio tracked within the relatively narrow band of 0.52 to 0.66, showing a gradual decrease in debt reliance as a portion of capital. Starting in September 2020, there is a notable increase in the ratio's values, persistently staying above 0.88 and briefly peaking above 1.0 at multiple points until June 2023. These elevated values suggest a shift toward greater debt financing relative to total capital or changes in the components of capital that impact this ratio's calculation. The sustained higher range signals an increased financial risk or restructuring during this latter period.

Debt to Assets Ratio

This ratio remained stable from December 2016 through June 2023, oscillating between 0.08 and 0.13. The relatively narrow range and consistent pattern indicate a steady relationship between debt and total assets, with no significant deviations or outlier values. This stability suggests that despite fluctuations in debt or equity, overall asset financing proportions via debt have remained controlled and consistent over the observed timeline.

Financial Leverage

The financial leverage ratio shows a pattern resembling that of the debt to equity ratio. From December 2016 to June 2020, values ranged modestly between approximately 10.57 and 17.11, reflecting a consistent leverage effect. Beginning around September 2020, the ratio exhibits extreme spikes, surpassing 1,000 at one point and then fluctuating up to about 1,473.34 and subsequently declining, yet remaining significantly higher than historical levels through to June 2023. This volatile and inflated range indicates extraordinary changes, potentially reflecting dramatic shifts in equity levels or balance sheet restructuring, substantially altering the leverage computation.

The analysis of the quarterly financial data reveals several key trends related to debt levels, equity, and leverage ratios over the observed periods.

Total Debt

Total debt showed moderate fluctuations with a general upward trend from late 2016 through early 2018, rising from approximately $4.1 billion to about $4.53 billion. Thereafter, debt levels stabilized near the $4.3 to $4.4 billion range through 2019 and early 2020. A notable decline occurred starting in late 2020, with total debt decreasing significantly to around $3.7 billion by the end of 2020. However, from March 2021 onward, total debt increased sharply, peaking at approximately $7.1 billion in June 2021, followed by a gradual decline to about $5 billion by mid-2023.

Stockholders’ Equity

Stockholders’ equity exhibited more volatility. It generally rose from late 2016 into early 2020, peaking near $3.86 billion in March 2020. After this peak, equity dropped sharply, moving into a negative position by the end of 2020 and remaining negative through much of 2021. During this negative equity period, it reached a low near -$1 billion. Starting late 2021, equity turned positive again and showed some recovery through mid-2023, reaching roughly $686 million.

Debt to Equity Ratio

The debt to equity ratio reflected these movements, staying relatively stable and moderate between 1.34 to 1.95 from 2016 through early 2020, indicating manageable leverage. The ratio fell to around 1.07 by mid-2020 corresponding with higher equity levels. However, following the decline in equity and rise in debt during 2021, the debt to equity ratio became highly volatile and abnormally elevated, spiking to extremely high values (e.g., 187.1 in March 2021) due to the near-zero or negative equity base. This abnormal leverage persisted through 2022, with ratios fluctuating widely but remaining elevated compared to historical levels. By mid-2023, the ratio lowered somewhat but remained higher than pre-2020 levels.

Overall, the data indicate a period of stable debt and equity management until early 2020. Subsequently, significant financial stress or restructuring appears evident, marked by a steep reduction and then sharp increase in debt, as well as a pronounced equity erosion leading to negative net worth during parts of 2021. The resulting high leverage ratios signal elevated financial risk during this time frame. The partial recovery of equity and tapering debt by mid-2023 suggest some stabilization efforts, though leverage remains above historical norms.

Total Debt

The total debt amount exhibits fluctuations over the entire period. Initially, from December 2016 to September 2017, the debt decreased from approximately 4.14 billion USD to around 3.44 billion USD. Subsequently, debt levels rose steadily reaching about 4.32 billion USD by December 2018. Between December 2018 and September 2020, total debt remained relatively stable in the range of approximately 4.16 to 4.29 billion USD. However, in December 2020, there is a notable decrease to approximately 3.70 billion USD, followed by a steep increase, peaking at more than 7.10 billion USD in June 2021. After this peak, total debt declined gradually towards 5.02 billion USD by June 2023.

Total Capital

Total capital also shows variability but within a different pattern. From December 2016 up to December 2017, total capital rose from about 6.25 billion to over 7.16 billion USD, followed by minor fluctuations around the 7 billion USD mark until December 2019. In March 2020, total capital experiences a dramatic drop to approximately 3.10 billion USD and remains depressed near this level through June 2020. Subsequently, capital recovers significantly to the range of 5.90 to 7.14 billion USD through mid-2021, but then trends downward gradually to approximately 5.71 billion USD by June 2023.

Debt to Capital Ratio

The debt-to-capital ratio, representing leverage, begins at 0.66 at the end of 2016 and declines steadily, reaching a low near 0.52 in June 2020. This decrease indicates a reduction in leverage during that period. However, a sharp reversal occurs starting September 2020, where the ratio spikes beyond 1.33, signaling that debt exceeded total capital substantially at that point. Following this peak, the ratio declines steadily to 0.88 by June 2023, denoting a normalization and reduction of leverage post-peak.

Overall, the data reveals periods of considerable volatility particularly around 2020 and 2021. The significant drop in total capital in early 2020, likely influenced by external factors, corresponds with a sharp increase in leverage, as shown by the debt-to-capital ratio exceeding 1.0. Subsequent periods show a gradual deleveraging trend with declining total debt and relatively stable capital, improving the financial structure. The company's capital structure adjustments appear responsive to changing economic conditions, with leverage managed downward after peaking in mid-2021.

The financial data over the analyzed periods reveal notable trends in the company's leverage and asset base. The total debt amounts exhibit fluctuations with an evident increase commencing in early 2021 and peaking around mid-2021, followed by a gradual decline towards mid-2023. Total assets consistently expand throughout the timeframe, demonstrating steady growth with intermittent acceleration periods, particularly evident from late 2019 through 2021 and continuing into 2023.

Total Debt

The total debt level starts at approximately 4.1 billion US dollars at the end of 2016, experiencing minor volatility until the end of 2020 when a significant rise is observed. It reaches a peak near 7.1 billion US dollars by mid-2021, indicating increased borrowing or obligations. Subsequently, there is a consistent reduction in total debt, falling back toward the 5 billion range by mid-2023. This pattern suggests strategic shifts in capital structure or debt management practices.

Total Assets

There is a clear upward trajectory in total assets from about 33.9 billion US dollars at the end of 2016 to over 61 billion US dollars by mid-2023. This growth is relatively steady, with a few periods of accelerated asset accumulation, notably between late 2019 and 2021. The expanding asset base might reflect acquisitions, capital investments, or organic growth in operations.

Debt to Assets Ratio

The ratio of debt to assets remains relatively stable around 0.10 to 0.12 from 2016 to 2020, indicating moderate leverage relative to the company's asset size. The ratio dips slightly at the end of 2020, reaching lows near 0.08, but rises sharply to approximately 0.13 in early to mid-2021, concurrent with the uptick in total debt. Following this period, the ratio gradually decreases again, stabilizing around 0.08 by mid-2023. This fluctuation demonstrates varying leverage levels and implies a responsive approach to debt management aligned with asset growth.

The financial data reveals various trends and fluctuations over the reported periods. Total assets generally demonstrate an upward trajectory, increasing steadily from 33.9 billion USD at the end of 2016 to approximately 61.2 billion USD by mid-2023. Although there are minor periods of decline, such as slight reductions around the end of 2018 and early 2019, the overall long-term growth suggests asset expansion and possibly acquisitions or organic growth in asset holdings.

Stockholders’ equity, however, shows a more volatile pattern. Beginning at about 2.1 billion USD in late 2016, equity rises to a peak near 3.9 billion USD in mid-2020. Subsequently, there is a significant decline, with equity turning negative in late 2020 and remaining negative through much of 2021 and early 2022. This period of negative equity might indicate financial distress, accumulated losses, or significant stock repurchases. By mid-2023, the equity value recovers to a positive 686 million USD, indicating some restoration of shareholder value or balance sheet adjustments.

Financial leverage, expressed as a ratio, initially ranges between approximately 10.5 and 17 in the early years, showing standard leverage levels for a company of this size. However, data from late 2020 onwards become sporadic and indicate extreme variability, with leverage ratios soaring to multiple hundreds and even over a thousand at certain points. This anomaly likely corresponds to the negative equity periods combined with relatively high debt levels, significantly amplifying the leverage ratio. The extremely high financial leverage ratios reflect an unusual capital structure and elevated financial risk during that period, followed by partial normalization as equity improves in 2023.

Total Assets

Consistent growth trend over approximately six and a half years with minor short-term declines; approximately an 80% increase from 2016 to mid-2023.

Stockholders’ Equity

Initial growth phase until mid-2020, followed by rapid deterioration into negative equity in late 2020 through early 2022, then gradual recovery toward positive territory by mid-2023.

Financial Leverage

Moderate and relatively stable leverage until 2020; extreme increases reflecting negative equity and possible restructuring from late 2020 to 2022; partial correction as equity improves.

Overall, the data suggest a period of financial stability with asset growth until 2020, followed by significant balance sheet stress represented by negative equity and high leverage. Recent quarters indicate improvement, suggesting corrective measures or operational recovery. Continuous monitoring of equity levels and leverage will be important for assessing financial health moving forward.