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)
Twitter Inc., solvency ratios
Based on: 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), 10-K (reporting date: 2017-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Twitter Inc. debt to equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Twitter Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Twitter Inc. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| 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. | Twitter Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Twitter Inc. debt to assets ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Twitter Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Twitter Inc. financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Twitter Inc. interest coverage ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Twitter Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity
Twitter Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes, short-term | —) | 917,866) | —) | 897,328) | —) | |
| Finance lease liabilities, short-term | —) | 567) | 23,476) | 68,046) | 84,976) | |
| Convertible notes, long-term | 3,559,023) | 1,875,878) | 1,816,833) | 1,730,922) | 1,627,460) | |
| Senior notes, long-term | 693,996) | 692,994) | 691,967) | —) | —) | |
| Finance lease liabilities, long-term | —) | —) | 205) | 24,394) | 81,308) | |
| Total debt | 4,253,019) | 3,487,305) | 2,532,481) | 2,720,690) | 1,793,744) | |
| Stockholders’ equity | 7,307,199) | 7,970,082) | 8,704,386) | 6,805,594) | 5,047,218) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.58 | 0.44 | 0.29 | 0.40 | 0.36 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Alphabet Inc. | 0.06 | 0.07 | 0.02 | — | — | |
| Comcast Corp. | 0.99 | 1.15 | 1.24 | — | — | |
| Meta Platforms Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Netflix Inc. | 0.97 | 1.47 | 1.95 | — | — | |
| Walt Disney Co. | 0.62 | 0.71 | 0.53 | — | — | |
| Debt to Equity, Sector | ||||||
| Media & Entertainment | 0.31 | 0.36 | 0.35 | — | — | |
| Debt to Equity, Industry | ||||||
| Communication Services | 0.65 | 0.67 | 0.62 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 4,253,019 ÷ 7,307,199 = 0.58
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. | Twitter Inc. debt to equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity (including Operating Lease Liability)
Twitter Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes, short-term | —) | 917,866) | —) | 897,328) | —) | |
| Finance lease liabilities, short-term | —) | 567) | 23,476) | 68,046) | 84,976) | |
| Convertible notes, long-term | 3,559,023) | 1,875,878) | 1,816,833) | 1,730,922) | 1,627,460) | |
| Senior notes, long-term | 693,996) | 692,994) | 691,967) | —) | —) | |
| Finance lease liabilities, long-term | —) | —) | 205) | 24,394) | 81,308) | |
| Total debt | 4,253,019) | 3,487,305) | 2,532,481) | 2,720,690) | 1,793,744) | |
| Operating lease liabilities, short-term | 222,346) | 177,147) | 146,959) | —) | —) | |
| Operating lease liabilities, long-term | 1,071,209) | 819,748) | 609,245) | —) | —) | |
| Total debt (including operating lease liability) | 5,546,574) | 4,484,200) | 3,288,685) | 2,720,690) | 1,793,744) | |
| Stockholders’ equity | 7,307,199) | 7,970,082) | 8,704,386) | 6,805,594) | 5,047,218) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.76 | 0.56 | 0.38 | 0.40 | 0.36 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.11 | 0.13 | 0.08 | — | — | |
| Comcast Corp. | 1.06 | 1.20 | 1.29 | — | — | |
| Meta Platforms Inc. | 0.12 | 0.09 | 0.11 | — | — | |
| Netflix Inc. | 1.14 | 1.67 | 2.16 | — | — | |
| Walt Disney Co. | 0.66 | 0.75 | 0.53 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.38 | 0.43 | 0.41 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.79 | 0.80 | 0.74 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 5,546,574 ÷ 7,307,199 = 0.76
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. | Twitter Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital
Twitter Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes, short-term | —) | 917,866) | —) | 897,328) | —) | |
| Finance lease liabilities, short-term | —) | 567) | 23,476) | 68,046) | 84,976) | |
| Convertible notes, long-term | 3,559,023) | 1,875,878) | 1,816,833) | 1,730,922) | 1,627,460) | |
| Senior notes, long-term | 693,996) | 692,994) | 691,967) | —) | —) | |
| Finance lease liabilities, long-term | —) | —) | 205) | 24,394) | 81,308) | |
| Total debt | 4,253,019) | 3,487,305) | 2,532,481) | 2,720,690) | 1,793,744) | |
| Stockholders’ equity | 7,307,199) | 7,970,082) | 8,704,386) | 6,805,594) | 5,047,218) | |
| Total capital | 11,560,218) | 11,457,387) | 11,236,867) | 9,526,284) | 6,840,962) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.37 | 0.30 | 0.23 | 0.29 | 0.26 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Alphabet Inc. | 0.06 | 0.06 | 0.02 | — | — | |
| Comcast Corp. | 0.50 | 0.53 | 0.55 | — | — | |
| Meta Platforms Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Netflix Inc. | 0.49 | 0.60 | 0.66 | — | — | |
| Walt Disney Co. | 0.38 | 0.41 | 0.35 | — | — | |
| Debt to Capital, Sector | ||||||
| Media & Entertainment | 0.24 | 0.27 | 0.26 | — | — | |
| Debt to Capital, Industry | ||||||
| Communication Services | 0.40 | 0.40 | 0.38 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 4,253,019 ÷ 11,560,218 = 0.37
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. | Twitter Inc. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital (including Operating Lease Liability)
Twitter Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes, short-term | —) | 917,866) | —) | 897,328) | —) | |
| Finance lease liabilities, short-term | —) | 567) | 23,476) | 68,046) | 84,976) | |
| Convertible notes, long-term | 3,559,023) | 1,875,878) | 1,816,833) | 1,730,922) | 1,627,460) | |
| Senior notes, long-term | 693,996) | 692,994) | 691,967) | —) | —) | |
| Finance lease liabilities, long-term | —) | —) | 205) | 24,394) | 81,308) | |
| Total debt | 4,253,019) | 3,487,305) | 2,532,481) | 2,720,690) | 1,793,744) | |
| Operating lease liabilities, short-term | 222,346) | 177,147) | 146,959) | —) | —) | |
| Operating lease liabilities, long-term | 1,071,209) | 819,748) | 609,245) | —) | —) | |
| Total debt (including operating lease liability) | 5,546,574) | 4,484,200) | 3,288,685) | 2,720,690) | 1,793,744) | |
| Stockholders’ equity | 7,307,199) | 7,970,082) | 8,704,386) | 6,805,594) | 5,047,218) | |
| Total capital (including operating lease liability) | 12,853,773) | 12,454,282) | 11,993,071) | 9,526,284) | 6,840,962) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.43 | 0.36 | 0.27 | 0.29 | 0.26 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.10 | 0.11 | 0.07 | — | — | |
| Comcast Corp. | 0.52 | 0.55 | 0.56 | — | — | |
| Meta Platforms Inc. | 0.10 | 0.08 | 0.10 | — | — | |
| Netflix Inc. | 0.53 | 0.63 | 0.68 | — | — | |
| Walt Disney Co. | 0.40 | 0.43 | 0.35 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.28 | 0.30 | 0.29 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.44 | 0.44 | 0.43 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 5,546,574 ÷ 12,853,773 = 0.43
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. | Twitter Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets
Twitter Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes, short-term | —) | 917,866) | —) | 897,328) | —) | |
| Finance lease liabilities, short-term | —) | 567) | 23,476) | 68,046) | 84,976) | |
| Convertible notes, long-term | 3,559,023) | 1,875,878) | 1,816,833) | 1,730,922) | 1,627,460) | |
| Senior notes, long-term | 693,996) | 692,994) | 691,967) | —) | —) | |
| Finance lease liabilities, long-term | —) | —) | 205) | 24,394) | 81,308) | |
| Total debt | 4,253,019) | 3,487,305) | 2,532,481) | 2,720,690) | 1,793,744) | |
| Total assets | 14,059,516) | 13,379,090) | 12,703,389) | 10,162,572) | 7,412,477) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.30 | 0.26 | 0.20 | 0.27 | 0.24 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Alphabet Inc. | 0.04 | 0.05 | 0.02 | — | — | |
| Comcast Corp. | 0.34 | 0.38 | 0.39 | — | — | |
| Meta Platforms Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Netflix Inc. | 0.35 | 0.42 | 0.43 | — | — | |
| Walt Disney Co. | 0.27 | 0.29 | 0.24 | — | — | |
| Debt to Assets, Sector | ||||||
| Media & Entertainment | 0.17 | 0.20 | 0.19 | — | — | |
| Debt to Assets, Industry | ||||||
| Communication Services | 0.27 | 0.27 | 0.26 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 4,253,019 ÷ 14,059,516 = 0.30
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. | Twitter Inc. debt to assets ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets (including Operating Lease Liability)
Twitter Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes, short-term | —) | 917,866) | —) | 897,328) | —) | |
| Finance lease liabilities, short-term | —) | 567) | 23,476) | 68,046) | 84,976) | |
| Convertible notes, long-term | 3,559,023) | 1,875,878) | 1,816,833) | 1,730,922) | 1,627,460) | |
| Senior notes, long-term | 693,996) | 692,994) | 691,967) | —) | —) | |
| Finance lease liabilities, long-term | —) | —) | 205) | 24,394) | 81,308) | |
| Total debt | 4,253,019) | 3,487,305) | 2,532,481) | 2,720,690) | 1,793,744) | |
| Operating lease liabilities, short-term | 222,346) | 177,147) | 146,959) | —) | —) | |
| Operating lease liabilities, long-term | 1,071,209) | 819,748) | 609,245) | —) | —) | |
| Total debt (including operating lease liability) | 5,546,574) | 4,484,200) | 3,288,685) | 2,720,690) | 1,793,744) | |
| Total assets | 14,059,516) | 13,379,090) | 12,703,389) | 10,162,572) | 7,412,477) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.39 | 0.34 | 0.26 | 0.27 | 0.24 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.08 | 0.09 | 0.06 | — | — | |
| Comcast Corp. | 0.37 | 0.40 | 0.41 | — | — | |
| Meta Platforms Inc. | 0.09 | 0.07 | 0.08 | — | — | |
| Netflix Inc. | 0.41 | 0.47 | 0.48 | — | — | |
| Walt Disney Co. | 0.29 | 0.31 | 0.24 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.21 | 0.23 | 0.22 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.33 | 0.33 | 0.31 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 5,546,574 ÷ 14,059,516 = 0.39
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. | Twitter Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Financial Leverage
Twitter Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 14,059,516) | 13,379,090) | 12,703,389) | 10,162,572) | 7,412,477) | |
| Stockholders’ equity | 7,307,199) | 7,970,082) | 8,704,386) | 6,805,594) | 5,047,218) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.92 | 1.68 | 1.46 | 1.49 | 1.47 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Alphabet Inc. | 1.43 | 1.44 | 1.37 | — | — | |
| Comcast Corp. | 2.87 | 3.03 | 3.18 | — | — | |
| Meta Platforms Inc. | 1.33 | 1.24 | 1.32 | — | — | |
| Netflix Inc. | 2.81 | 3.55 | 4.48 | — | — | |
| Walt Disney Co. | 2.30 | 2.41 | 2.18 | — | — | |
| Financial Leverage, Sector | ||||||
| Media & Entertainment | 1.82 | 1.85 | 1.87 | — | — | |
| Financial Leverage, Industry | ||||||
| Communication Services | 2.43 | 2.45 | 2.42 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 14,059,516 ÷ 7,307,199 = 1.92
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. | Twitter Inc. financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021. |
Interest Coverage
Twitter Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | (221,409) | (1,135,626) | 1,465,659) | 1,205,596) | (108,063) | |
| Add: Income tax expense | (189,704) | 1,084,687) | (1,075,520) | (782,052) | 12,645) | |
| Add: Interest expense | 51,186) | 152,878) | 138,180) | 132,606) | 105,237) | |
| Earnings before interest and tax (EBIT) | (359,927) | 101,939) | 528,319) | 556,150) | 9,819) | |
| Solvency Ratio | ||||||
| Interest coverage1 | -7.03 | 0.67 | 3.82 | 4.19 | 0.09 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Alphabet Inc. | 263.24 | 357.16 | 397.25 | — | — | |
| Comcast Corp. | 5.46 | 4.07 | 4.72 | — | — | |
| Meta Platforms Inc. | 3,153.27 | 2,371.00 | 1,241.60 | — | — | |
| Netflix Inc. | 8.63 | 5.17 | 4.29 | — | — | |
| Walt Disney Co. | 2.66 | -0.06 | 12.19 | — | — | |
| Interest Coverage, Sector | ||||||
| Media & Entertainment | 24.80 | 14.53 | 15.86 | — | — | |
| Interest Coverage, Industry | ||||||
| Communication Services | 11.90 | 6.51 | 7.88 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= -359,927 ÷ 51,186 = -7.03
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. | Twitter Inc. interest coverage ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Fixed Charge Coverage
Twitter Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | (221,409) | (1,135,626) | 1,465,659) | 1,205,596) | (108,063) | |
| Add: Income tax expense | (189,704) | 1,084,687) | (1,075,520) | (782,052) | 12,645) | |
| Add: Interest expense | 51,186) | 152,878) | 138,180) | 132,606) | 105,237) | |
| Earnings before interest and tax (EBIT) | (359,927) | 101,939) | 528,319) | 556,150) | 9,819) | |
| Add: Operating lease cost | 256,388) | 201,386) | 173,005) | 138,800) | 117,900) | |
| Earnings before fixed charges and tax | (103,539) | 303,325) | 701,324) | 694,950) | 127,719) | |
| Interest expense | 51,186) | 152,878) | 138,180) | 132,606) | 105,237) | |
| Operating lease cost | 256,388) | 201,386) | 173,005) | 138,800) | 117,900) | |
| Fixed charges | 307,574) | 354,264) | 311,185) | 271,406) | 223,137) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | -0.34 | 0.86 | 2.25 | 2.56 | 0.57 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Alphabet Inc. | 25.06 | 16.92 | 17.10 | — | — | |
| Comcast Corp. | 4.48 | 3.47 | 4.00 | — | — | |
| Meta Platforms Inc. | 31.41 | 24.62 | 22.41 | — | — | |
| Netflix Inc. | 5.46 | 3.65 | 2.92 | — | — | |
| Walt Disney Co. | 2.07 | 0.32 | 6.94 | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Media & Entertainment | 12.40 | 7.98 | 8.67 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Communication Services | 5.95 | 3.73 | 4.58 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= -103,539 ÷ 307,574 = -0.34
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. | Twitter Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |