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)
Boston Scientific Corp., solvency ratios
Based on: 10-K (reporting date: 2022-12-31), 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. | Boston Scientific Corp. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Boston Scientific Corp. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Boston Scientific Corp. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
| 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. | Boston Scientific Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Boston Scientific Corp. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Boston Scientific Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Boston Scientific Corp. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Boston Scientific Corp. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Boston Scientific Corp. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Debt to Equity
Boston Scientific Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt obligations | 20) | 261) | 13) | 1,416) | 2,253) | |
| Long-term debt | 8,915) | 8,804) | 9,130) | 8,592) | 4,803) | |
| Total debt | 8,935) | 9,065) | 9,143) | 10,008) | 7,056) | |
| Stockholders’ equity | 17,573) | 16,622) | 15,326) | 13,877) | 8,726) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.51 | 0.55 | 0.60 | 0.72 | 0.81 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | 0.46 | 0.50 | 0.57 | 0.58 | — | |
| Cigna Group | 0.69 | 0.71 | 0.65 | 0.83 | — | |
| CVS Health Corp. | 0.74 | 0.75 | 0.93 | 1.07 | — | |
| Elevance Health Inc. | 0.66 | 0.64 | 0.60 | 0.63 | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Medtronic PLC | 0.46 | 0.51 | 0.49 | 0.51 | — | |
| UnitedHealth Group Inc. | 0.74 | 0.64 | 0.66 | 0.71 | — | |
| Debt to Equity, Sector | ||||||
| Health Care Equipment & Services | 0.62 | 0.62 | 0.66 | — | — | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.72 | 0.79 | 0.90 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 8,935 ÷ 17,573 = 0.51
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. | Boston Scientific Corp. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Boston Scientific Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt obligations | 20) | 261) | 13) | 1,416) | 2,253) | |
| Long-term debt | 8,915) | 8,804) | 9,130) | 8,592) | 4,803) | |
| Total debt | 8,935) | 9,065) | 9,143) | 10,008) | 7,056) | |
| Current operating lease liabilities (in Other current liabilities) | 61) | 71) | 70) | 67) | —) | |
| Long-term operating lease liabilities | 347) | 389) | 401) | 276) | —) | |
| Total debt (including operating lease liability) | 9,343) | 9,525) | 9,614) | 10,351) | 7,056) | |
| Stockholders’ equity | 17,573) | 16,622) | 15,326) | 13,877) | 8,726) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.53 | 0.57 | 0.63 | 0.75 | 0.81 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.49 | 0.54 | 0.61 | 0.61 | — | |
| Cigna Group | 0.70 | 0.73 | 0.67 | 0.84 | — | |
| CVS Health Corp. | 1.00 | 1.01 | 1.23 | 1.39 | — | |
| Elevance Health Inc. | 0.69 | 0.67 | 0.63 | 0.65 | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | — | |
| Medtronic PLC | 0.48 | 0.53 | 0.51 | 0.51 | — | |
| UnitedHealth Group Inc. | 0.80 | 0.70 | 0.73 | 0.77 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.70 | 0.70 | 0.75 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.78 | 0.84 | 0.96 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 9,343 ÷ 17,573 = 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. | Boston Scientific Corp. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital
Boston Scientific Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt obligations | 20) | 261) | 13) | 1,416) | 2,253) | |
| Long-term debt | 8,915) | 8,804) | 9,130) | 8,592) | 4,803) | |
| Total debt | 8,935) | 9,065) | 9,143) | 10,008) | 7,056) | |
| Stockholders’ equity | 17,573) | 16,622) | 15,326) | 13,877) | 8,726) | |
| Total capital | 26,508) | 25,687) | 24,469) | 23,885) | 15,782) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.34 | 0.35 | 0.37 | 0.42 | 0.45 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | 0.31 | 0.34 | 0.36 | 0.37 | — | |
| Cigna Group | 0.41 | 0.42 | 0.40 | 0.45 | — | |
| CVS Health Corp. | 0.42 | 0.43 | 0.48 | 0.52 | — | |
| Elevance Health Inc. | 0.40 | 0.39 | 0.38 | 0.39 | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Medtronic PLC | 0.31 | 0.34 | 0.33 | 0.34 | — | |
| UnitedHealth Group Inc. | 0.43 | 0.39 | 0.40 | 0.41 | — | |
| Debt to Capital, Sector | ||||||
| Health Care Equipment & Services | 0.38 | 0.38 | 0.40 | — | — | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.42 | 0.44 | 0.47 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 8,935 ÷ 26,508 = 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. | Boston Scientific Corp. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Boston Scientific Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt obligations | 20) | 261) | 13) | 1,416) | 2,253) | |
| Long-term debt | 8,915) | 8,804) | 9,130) | 8,592) | 4,803) | |
| Total debt | 8,935) | 9,065) | 9,143) | 10,008) | 7,056) | |
| Current operating lease liabilities (in Other current liabilities) | 61) | 71) | 70) | 67) | —) | |
| Long-term operating lease liabilities | 347) | 389) | 401) | 276) | —) | |
| Total debt (including operating lease liability) | 9,343) | 9,525) | 9,614) | 10,351) | 7,056) | |
| Stockholders’ equity | 17,573) | 16,622) | 15,326) | 13,877) | 8,726) | |
| Total capital (including operating lease liability) | 26,916) | 26,147) | 24,940) | 24,228) | 15,782) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.35 | 0.36 | 0.39 | 0.43 | 0.45 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.33 | 0.35 | 0.38 | 0.38 | — | |
| Cigna Group | 0.41 | 0.42 | 0.40 | 0.46 | — | |
| CVS Health Corp. | 0.50 | 0.50 | 0.55 | 0.58 | — | |
| Elevance Health Inc. | 0.41 | 0.40 | 0.39 | 0.40 | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | — | |
| Medtronic PLC | 0.32 | 0.35 | 0.34 | 0.34 | — | |
| UnitedHealth Group Inc. | 0.45 | 0.41 | 0.42 | 0.44 | — | |
| 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 | 0.49 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 9,343 ÷ 26,916 = 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. | Boston Scientific Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
Boston Scientific Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt obligations | 20) | 261) | 13) | 1,416) | 2,253) | |
| Long-term debt | 8,915) | 8,804) | 9,130) | 8,592) | 4,803) | |
| Total debt | 8,935) | 9,065) | 9,143) | 10,008) | 7,056) | |
| Total assets | 32,469) | 32,229) | 30,777) | 30,565) | 20,999) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.28 | 0.28 | 0.30 | 0.33 | 0.34 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | 0.23 | 0.24 | 0.26 | 0.27 | — | |
| Cigna Group | 0.22 | 0.22 | 0.21 | 0.24 | — | |
| CVS Health Corp. | 0.23 | 0.24 | 0.28 | 0.31 | — | |
| Elevance Health Inc. | 0.23 | 0.24 | 0.23 | 0.26 | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Medtronic PLC | 0.27 | 0.28 | 0.27 | 0.28 | — | |
| UnitedHealth Group Inc. | 0.23 | 0.22 | 0.22 | 0.23 | — | |
| Debt to Assets, Sector | ||||||
| Health Care Equipment & Services | 0.23 | 0.23 | 0.24 | — | — | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.27 | 0.28 | 0.31 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 8,935 ÷ 32,469 = 0.28
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. | Boston Scientific Corp. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Boston Scientific Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt obligations | 20) | 261) | 13) | 1,416) | 2,253) | |
| Long-term debt | 8,915) | 8,804) | 9,130) | 8,592) | 4,803) | |
| Total debt | 8,935) | 9,065) | 9,143) | 10,008) | 7,056) | |
| Current operating lease liabilities (in Other current liabilities) | 61) | 71) | 70) | 67) | —) | |
| Long-term operating lease liabilities | 347) | 389) | 401) | 276) | —) | |
| Total debt (including operating lease liability) | 9,343) | 9,525) | 9,614) | 10,351) | 7,056) | |
| Total assets | 32,469) | 32,229) | 30,777) | 30,565) | 20,999) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.29 | 0.30 | 0.31 | 0.34 | 0.34 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.24 | 0.26 | 0.27 | 0.28 | — | |
| Cigna Group | 0.22 | 0.22 | 0.22 | 0.24 | — | |
| CVS Health Corp. | 0.31 | 0.33 | 0.37 | 0.40 | — | |
| Elevance Health Inc. | 0.24 | 0.25 | 0.24 | 0.27 | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | — | |
| Medtronic PLC | 0.27 | 0.29 | 0.28 | 0.28 | — | |
| UnitedHealth Group Inc. | 0.25 | 0.24 | 0.24 | 0.26 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.26 | 0.26 | 0.28 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.29 | 0.30 | 0.33 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 9,343 ÷ 32,469 = 0.29
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. | Boston Scientific Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Financial Leverage
Boston Scientific Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 32,469) | 32,229) | 30,777) | 30,565) | 20,999) | |
| Stockholders’ equity | 17,573) | 16,622) | 15,326) | 13,877) | 8,726) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.85 | 1.94 | 2.01 | 2.20 | 2.41 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | 2.03 | 2.10 | 2.21 | 2.18 | — | |
| Cigna Group | 3.21 | 3.29 | 3.09 | 3.44 | — | |
| CVS Health Corp. | 3.21 | 3.10 | 3.32 | 3.48 | — | |
| Elevance Health Inc. | 2.83 | 2.70 | 2.61 | 2.44 | — | |
| Intuitive Surgical Inc. | 1.17 | 1.14 | 1.15 | 1.18 | — | |
| Medtronic PLC | 1.73 | 1.81 | 1.79 | 1.79 | — | |
| UnitedHealth Group Inc. | 3.16 | 2.96 | 3.01 | 3.02 | — | |
| Financial Leverage, Sector | ||||||
| Health Care Equipment & Services | 2.72 | 2.67 | 2.71 | — | — | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.67 | 2.77 | 2.94 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 32,469 ÷ 17,573 = 1.85
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. | Boston Scientific Corp. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Interest Coverage
Boston Scientific Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 698) | 1,041) | (82) | 4,700) | 1,671) | |
| Add: Income tax expense | 443) | 35) | 3) | (4,013) | (249) | |
| Add: Interest expense | 470) | 341) | 361) | 473) | 241) | |
| Earnings before interest and tax (EBIT) | 1,611) | 1,417) | 282) | 1,160) | 1,663) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 3.43 | 4.16 | 0.78 | 2.45 | 6.90 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | 15.89 | 16.41 | 10.10 | 7.09 | — | |
| Cigna Group | 7.43 | 6.22 | 8.76 | 5.11 | — | |
| CVS Health Corp. | 3.46 | 5.16 | 4.36 | 3.96 | — | |
| Elevance Health Inc. | 10.13 | 10.93 | 8.96 | 9.02 | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | 10.98 | 5.21 | 4.71 | 4.60 | — | |
| UnitedHealth Group Inc. | 13.59 | 14.44 | 13.47 | 11.55 | — | |
| Interest Coverage, Sector | ||||||
| Health Care Equipment & Services | 9.31 | 8.96 | 7.89 | — | — | |
| Interest Coverage, Industry | ||||||
| Health Care | 12.71 | 12.24 | 7.71 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,611 ÷ 470 = 3.43
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. | Boston Scientific Corp. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Fixed Charge Coverage
Boston Scientific Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| U.S. federal statutory income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | |
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 698) | 1,041) | (82) | 4,700) | 1,671) | |
| Add: Income tax expense | 443) | 35) | 3) | (4,013) | (249) | |
| Add: Interest expense | 470) | 341) | 361) | 473) | 241) | |
| Earnings before interest and tax (EBIT) | 1,611) | 1,417) | 282) | 1,160) | 1,663) | |
| Add: Operating lease cost | 91) | 90) | 92) | 80) | 92) | |
| Earnings before fixed charges and tax | 1,702) | 1,507) | 374) | 1,240) | 1,755) | |
| Interest expense | 470) | 341) | 361) | 473) | 241) | |
| Operating lease cost | 91) | 90) | 92) | 80) | 92) | |
| Preferred stock dividends | 56) | 56) | 33) | —) | —) | |
| Preferred stock dividends, tax adjustment1 | 15) | 15) | 9) | —) | —) | |
| Preferred stock dividends, after tax adjustment | 71) | 71) | 42) | —) | —) | |
| Fixed charges | 632) | 502) | 495) | 553) | 333) | |
| Solvency Ratio | ||||||
| Fixed charge coverage2 | 2.69 | 3.00 | 0.76 | 2.24 | 5.27 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors3 | ||||||
| Abbott Laboratories | 10.10 | 10.21 | 6.68 | 5.14 | — | |
| Cigna Group | 6.87 | 5.61 | 7.84 | 4.67 | — | |
| CVS Health Corp. | 2.16 | 3.03 | 2.75 | 2.56 | — | |
| Elevance Health Inc. | 8.82 | 8.48 | 6.10 | 7.34 | — | |
| Intuitive Surgical Inc. | 63.52 | 93.66 | 58.48 | 79.65 | — | |
| Medtronic PLC | 7.79 | 4.31 | 3.98 | 3.97 | — | |
| UnitedHealth Group Inc. | 8.77 | 8.80 | 8.51 | 7.65 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Health Care Equipment & Services | 6.11 | 5.87 | 5.31 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 9.02 | 8.67 | 5.70 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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 2022 Calculation
Preferred stock dividends, tax adjustment = (Preferred stock dividends × U.S. federal statutory income tax rate) ÷ (1 − U.S. federal statutory income tax rate)
= (56 × 21.00%) ÷ (1 − 21.00%) = 15
2 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,702 ÷ 632 = 2.69
3 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. | Boston Scientific Corp. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |