Royalty Pharma Balance Sheet Health

Financial Health criteria checks 4/6

Royalty Pharma has a total shareholder equity of $10.3B and total debt of $7.6B, which brings its debt-to-equity ratio to 74.2%. Its total assets and total liabilities are $18.0B and $7.8B respectively. Royalty Pharma's EBIT is $1.5B making its interest coverage ratio 9.5. It has cash and short-term investments of $998.6M.

Key information

74.2%

Debt to equity ratio

US$7.61b

Debt

Interest coverage ratio9.5x
CashUS$998.55m
EquityUS$10.26b
Total liabilitiesUS$7.78b
Total assetsUS$18.04b

Recent financial health updates

No updates

Recent updates

Financial Position Analysis

Short Term Liabilities: RPD's short term assets ($1.8B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: RPD's short term assets ($1.8B) do not cover its long term liabilities ($6.6B).


Debt to Equity History and Analysis

Debt Level: RPD's net debt to equity ratio (64.4%) is considered high.

Reducing Debt: RPD's debt to equity ratio has reduced from 110.3% to 74.2% over the past 5 years.

Debt Coverage: RPD's debt is well covered by operating cash flow (36.8%).

Interest Coverage: RPD's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet


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