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)
Monsanto Co., solvency ratios
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Monsanto Co. debt to equity ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Monsanto Co. debt to capital ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Monsanto Co. debt to assets ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Monsanto Co. financial leverage ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017 not reaching 2015 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Monsanto Co. interest coverage ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Monsanto Co. fixed charge coverage ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level. |
Debt to Equity
Monsanto Co., debt to equity calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt, including current portion of long-term debt | 870) | 1,587) | 615) | 233) | 51) | 36) | |
| Long-term debt, excluding current portion | 7,254) | 7,453) | 8,429) | 7,528) | 2,061) | 2,038) | |
| Total debt | 8,124) | 9,040) | 9,044) | 7,761) | 2,112) | 2,074) | |
| Total Monsanto Company shareowners’ equity | 6,438) | 4,534) | 6,990) | 7,875) | 12,559) | 11,833) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 1.26 | 1.99 | 1.29 | 0.99 | 0.17 | 0.18 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| lululemon athletica inc. | — | — | — | — | — | — | |
| Nike Inc. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Debt to equity = Total debt ÷ Total Monsanto Company shareowners’ equity
= 8,124 ÷ 6,438 = 1.26
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. | Monsanto Co. debt to equity ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
Debt to Capital
Monsanto Co., debt to capital calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt, including current portion of long-term debt | 870) | 1,587) | 615) | 233) | 51) | 36) | |
| Long-term debt, excluding current portion | 7,254) | 7,453) | 8,429) | 7,528) | 2,061) | 2,038) | |
| Total debt | 8,124) | 9,040) | 9,044) | 7,761) | 2,112) | 2,074) | |
| Total Monsanto Company shareowners’ equity | 6,438) | 4,534) | 6,990) | 7,875) | 12,559) | 11,833) | |
| Total capital | 14,562) | 13,574) | 16,034) | 15,636) | 14,671) | 13,907) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.56 | 0.67 | 0.56 | 0.50 | 0.14 | 0.15 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| lululemon athletica inc. | — | — | — | — | — | — | |
| Nike Inc. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Debt to capital = Total debt ÷ Total capital
= 8,124 ÷ 14,562 = 0.56
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. | Monsanto Co. debt to capital ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
Debt to Assets
Monsanto Co., debt to assets calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt, including current portion of long-term debt | 870) | 1,587) | 615) | 233) | 51) | 36) | |
| Long-term debt, excluding current portion | 7,254) | 7,453) | 8,429) | 7,528) | 2,061) | 2,038) | |
| Total debt | 8,124) | 9,040) | 9,044) | 7,761) | 2,112) | 2,074) | |
| Total assets | 21,333) | 19,736) | 21,920) | 21,981) | 20,664) | 20,224) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.38 | 0.46 | 0.41 | 0.35 | 0.10 | 0.10 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| lululemon athletica inc. | — | — | — | — | — | — | |
| Nike Inc. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Debt to assets = Total debt ÷ Total assets
= 8,124 ÷ 21,333 = 0.38
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. | Monsanto Co. debt to assets ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
Financial Leverage
Monsanto Co., financial leverage calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 21,333) | 19,736) | 21,920) | 21,981) | 20,664) | 20,224) | |
| Total Monsanto Company shareowners’ equity | 6,438) | 4,534) | 6,990) | 7,875) | 12,559) | 11,833) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 3.31 | 4.35 | 3.14 | 2.79 | 1.65 | 1.71 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| lululemon athletica inc. | — | — | — | — | — | — | |
| Nike Inc. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Financial leverage = Total assets ÷ Total Monsanto Company shareowners’ equity
= 21,333 ÷ 6,438 = 3.31
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. | Monsanto Co. financial leverage ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017 not reaching 2015 level. |
Interest Coverage
Monsanto Co., interest coverage calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income attributable to Monsanto Company | 2,260) | 1,336) | 2,314) | 2,740) | 2,482) | 2,045) | |
| Add: Net income attributable to noncontrolling interest | 13) | (23) | 11) | 22) | 43) | 48) | |
| Less: Income on discontinued operations | 13) | 17) | 28) | 13) | 11) | 6) | |
| Add: Income tax expense | 626) | 695) | 864) | 1,078) | 915) | 901) | |
| Add: Interest expense | 452) | 436) | 433) | 248) | 172) | 191) | |
| Earnings before interest and tax (EBIT) | 3,338) | 2,427) | 3,594) | 4,075) | 3,601) | 3,179) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 7.38 | 5.57 | 8.30 | 16.43 | 20.94 | 16.64 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| lululemon athletica inc. | — | — | — | — | — | — | |
| Nike Inc. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,338 ÷ 452 = 7.38
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. | Monsanto Co. interest coverage ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level. |
Fixed Charge Coverage
Monsanto Co., fixed charge coverage calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income attributable to Monsanto Company | 2,260) | 1,336) | 2,314) | 2,740) | 2,482) | 2,045) | |
| Add: Net income attributable to noncontrolling interest | 13) | (23) | 11) | 22) | 43) | 48) | |
| Less: Income on discontinued operations | 13) | 17) | 28) | 13) | 11) | 6) | |
| Add: Income tax expense | 626) | 695) | 864) | 1,078) | 915) | 901) | |
| Add: Interest expense | 452) | 436) | 433) | 248) | 172) | 191) | |
| Earnings before interest and tax (EBIT) | 3,338) | 2,427) | 3,594) | 4,075) | 3,601) | 3,179) | |
| Add: Rent expense | 262) | 256) | 273) | 272) | 259) | 248) | |
| Earnings before fixed charges and tax | 3,600) | 2,683) | 3,867) | 4,347) | 3,860) | 3,427) | |
| Interest expense | 452) | 436) | 433) | 248) | 172) | 191) | |
| Rent expense | 262) | 256) | 273) | 272) | 259) | 248) | |
| Fixed charges | 714) | 692) | 706) | 520) | 431) | 439) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 5.04 | 3.88 | 5.48 | 8.36 | 8.96 | 7.81 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| lululemon athletica inc. | — | — | — | — | — | — | |
| Nike Inc. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,600 ÷ 714 = 5.04
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. | Monsanto Co. fixed charge coverage ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level. |