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 ratio | 9.5x |
| Cash | US$998.55m |
| Equity | US$10.26b |
| Total liabilities | US$7.78b |
| Total assets | US$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).