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)
Baxter International Inc., solvency ratios
Based on: 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), 10-K (reporting date: 2011-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Baxter International Inc. debt to equity ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Baxter International Inc. debt to capital ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Baxter International Inc. debt to assets ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Baxter International Inc. financial leverage ratio increased from 2013 to 2014 but then decreased significantly from 2014 to 2015. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Baxter International Inc. interest coverage ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Baxter International Inc. fixed charge coverage ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Debt to Equity
Baxter International Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 1,775) | 913) | 181) | 27) | 256) | |
| Current maturities of long-term debt and lease obligations | 810) | 786) | 859) | 323) | 190) | |
| Long-term debt and lease obligations, excluding current maturities | 3,935) | 7,606) | 8,126) | 5,580) | 4,749) | |
| Total debt | 6,520) | 9,305) | 9,166) | 5,930) | 5,195) | |
| Total Baxter shareholders’ equity | 8,846) | 8,120) | 8,463) | 6,938) | 6,585) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.74 | 1.15 | 1.08 | 0.85 | 0.79 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Debt to equity = Total debt ÷ Total Baxter shareholders’ equity
= 6,520 ÷ 8,846 = 0.74
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. | Baxter International Inc. debt to equity ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level. |
Debt to Capital
Baxter International Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 1,775) | 913) | 181) | 27) | 256) | |
| Current maturities of long-term debt and lease obligations | 810) | 786) | 859) | 323) | 190) | |
| Long-term debt and lease obligations, excluding current maturities | 3,935) | 7,606) | 8,126) | 5,580) | 4,749) | |
| Total debt | 6,520) | 9,305) | 9,166) | 5,930) | 5,195) | |
| Total Baxter shareholders’ equity | 8,846) | 8,120) | 8,463) | 6,938) | 6,585) | |
| Total capital | 15,366) | 17,425) | 17,629) | 12,868) | 11,780) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.42 | 0.53 | 0.52 | 0.46 | 0.44 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,520 ÷ 15,366 = 0.42
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. | Baxter International Inc. debt to capital ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level. |
Debt to Assets
Baxter International Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 1,775) | 913) | 181) | 27) | 256) | |
| Current maturities of long-term debt and lease obligations | 810) | 786) | 859) | 323) | 190) | |
| Long-term debt and lease obligations, excluding current maturities | 3,935) | 7,606) | 8,126) | 5,580) | 4,749) | |
| Total debt | 6,520) | 9,305) | 9,166) | 5,930) | 5,195) | |
| Total assets | 20,975) | 25,917) | 25,869) | 20,390) | 19,073) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.31 | 0.36 | 0.35 | 0.29 | 0.27 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,520 ÷ 20,975 = 0.31
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. | Baxter International Inc. debt to assets ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level. |
Financial Leverage
Baxter International Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 20,975) | 25,917) | 25,869) | 20,390) | 19,073) | |
| Total Baxter shareholders’ equity | 8,846) | 8,120) | 8,463) | 6,938) | 6,585) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.37 | 3.19 | 3.06 | 2.94 | 2.90 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Financial leverage = Total assets ÷ Total Baxter shareholders’ equity
= 20,975 ÷ 8,846 = 2.37
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. | Baxter International Inc. financial leverage ratio increased from 2013 to 2014 but then decreased significantly from 2014 to 2015. |
Interest Coverage
Baxter International Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Baxter | 968) | 2,497) | 2,012) | 2,326) | 2,224) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | 32) | |
| Less: Income from discontinued operations, net of tax | 575) | 551) | —) | —) | —) | |
| Add: Income tax expense | 35) | 493) | 537) | 563) | 553) | |
| Add: Interest expense | 146) | 167) | 155) | 113) | 92) | |
| Earnings before interest and tax (EBIT) | 574) | 2,606) | 2,704) | 3,002) | 2,901) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 3.93 | 15.60 | 17.45 | 26.57 | 31.53 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Interest coverage = EBIT ÷ Interest expense
= 574 ÷ 146 = 3.93
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. | Baxter International Inc. interest coverage ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Fixed Charge Coverage
Baxter International Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Baxter | 968) | 2,497) | 2,012) | 2,326) | 2,224) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | 32) | |
| Less: Income from discontinued operations, net of tax | 575) | 551) | —) | —) | —) | |
| Add: Income tax expense | 35) | 493) | 537) | 563) | 553) | |
| Add: Interest expense | 146) | 167) | 155) | 113) | 92) | |
| Earnings before interest and tax (EBIT) | 574) | 2,606) | 2,704) | 3,002) | 2,901) | |
| Add: Operating lease rent expense | 184) | 250) | 214) | 202) | 203) | |
| Earnings before fixed charges and tax | 758) | 2,856) | 2,918) | 3,204) | 3,104) | |
| Interest expense | 146) | 167) | 155) | 113) | 92) | |
| Operating lease rent expense | 184) | 250) | 214) | 202) | 203) | |
| Fixed charges | 330) | 417) | 369) | 315) | 295) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 2.30 | 6.85 | 7.91 | 10.17 | 10.52 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 758 ÷ 330 = 2.30
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. | Baxter International Inc. fixed charge coverage ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |