Royalty Pharma Balance Sheet Health
Financial Health criteria checks 4/6
Royalty Pharma has a total shareholder equity of $9.8B and total debt of $7.6B, which brings its debt-to-equity ratio to 78%. Its total assets and total liabilities are $17.7B and $7.9B respectively. Royalty Pharma's EBIT is $960.2M making its interest coverage ratio 7.1. It has cash and short-term investments of $1.8B.
Key information
78.0%
Debt to equity ratio
US$7.60b
Debt
| Interest coverage ratio | 7.1x |
| Cash | US$1.80b |
| Equity | US$9.75b |
| Total liabilities | US$7.90b |
| Total assets | US$17.66b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: RPD's short term assets ($2.6B) exceed its short term liabilities ($275.7M).
Long Term Liabilities: RPD's short term assets ($2.6B) do not cover its long term liabilities ($7.6B).
Debt to Equity History and Analysis
Debt Level: RPD's net debt to equity ratio (59.5%) is considered high.
Reducing Debt: RPD's debt to equity ratio has reduced from 119.7% to 78% over the past 5 years.
Debt Coverage: RPD's debt is well covered by operating cash flow (35.1%).
Interest Coverage: RPD's interest payments on its debt are well covered by EBIT (7.1x coverage).