S&P 500 Financial Ratios

Corporate Finance Briefing: S&P 500 Financial Ratios

Yardeni Research, Inc.

August 11, 2019

Dr. Ed Yardeni

516-972-7683 eyardeni@

Joe Abbott

732-497-5306 jabbott@

Mali Quintana

480-664-1333 aquintana@

Please visit our sites at blog.

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Table Of Contents Table Of Contents

S&P 500 Leverage Ratios S&P 500 Liquidity Ratios S&P 500 Asset Management Ratios S&P 500 Other Data S&P 500 and Sectors Return on Equity S&P 500 Interest Expense

3 4 5 6 7-11 12-14

August 11, 2019 / S&P 500 Financial Ratios

Yardeni Research, Inc.



S&P 500 Leverage Ratios

Figure 1.

1.3

14

S&P 500 LEVERAGE RATIOS

13

Leverage Ratios

1.2

Debt to Assets (0.78)

12

Debt to Equity (0.86) Interest Coverage (10.47)

11

1.1

Liabilities to EBITDA (9.65)

10

9

1.0

8

7

.9

6

5

.8

4

2017

3



.7

2

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

Source: Haver Analytics and Standard & Poor's Corporation.

Figure 2.

5000

S&P 500 COMPONENTS OF LEVERAGE RATIOS

(dollars per share)

4500

Components of Leverage Ratios

Left scale

4000

Total Debt (3050.36)

Total Assets (3900.32)

3500

Long Term Debt (712.98)

Total Equity (830.51)

Right scale

3000

Ebitda (261.94)

Interest Expense (25.02)

2500

Cash & Equivalents (523.35)

600 550 500 450 400 2017 350 300

2000

250

200 1500

150

1000 100

500

50



0

0

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

Source: Haver Analytics and Standard & Poor's Corporation.

Page 3 / August 11, 2019 / S&P 500 Financial Ratios

Yardeni Research, Inc.



S&P 500 Liquidity Ratios

Figure 3.

1.25

1.25

S&P 500 LIQUIDITY RATIOS

1.20

1.20

1.15

Liquidity Ratios

1.10

Current Ratio (1.15)

Quick Ratio (1.01)

1.05

2017

1.15

1.10

1.05

1.00

1.00

.95

.95



.90

.90

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

Source: Haver Analytics and Standard & Poor's Corporation.

Figure 4.

2000

S&P 500 COMPONENTS OF LIQUIDITY RATIOS (dollars per share)

1800

1600

Components of Liquidity Ratios

Left scale

Current Assets (1737.41)

1400

Current Liabilities (1509.50)

Right scale

Inventory (213.66) 1200

350

2017

300

250

200

1000 150

800

100 600



400

50

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

Source: Haver Analytics and Standard & Poor's Corporation.

Page 4 / August 11, 2019 / S&P 500 Financial Ratios

Yardeni Research, Inc.



S&P 500 Asset Management Ratios

Figure 5.

3.25

.55

S&P 500 ASSET MANAGEMENT RATIOS

3.00

Asset Management Ratios

.50

Fixed Asset Turnover (2.37)

Total Asset Turnover (0.32)

2.75

.45

2.50

.40

2017

2.25

.35



2.00

.30

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

Source: Haver Analytics and Standard & Poor's Corporation.

Figure 6.

5000

5000

S&P 500 COMPONENTS OF ASSET MANAGEMENT RATIOS

(dollars per share)

4500

4500

4000

Components of Asset Management Ratios

4000

Fixed Assets (529.42)

3500

Total Assets (3900.32)

3500

Sales (1231.57)

3000

3000

2500

2500

2000

2000

1500

1500

1000

1000

500

2017

500



0

0

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

Source: Haver Analytics and Standard & Poor's Corporation.

Page 5 / August 11, 2019 / S&P 500 Financial Ratios

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S&P 500 Other Data

Figure 7.

80

22

S&P 500 CAPITAL EXPENDITURES

(dollars per share)

75

21

70 Annual Capex (left scale) (64.1) Quarterly Capex (right scale) (17.9)

65

60

55

20

2017

19

Q1 18

17

50

16

45

15

40

14

35

13



30

12

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

Source: Haver Analytics and Standard & Poor's Corporation.

Figure 8.

55

55

S&P 500 EFFECTIVE CORPORATE TAX RATE*

(percent)

50

50

45

Tax Rate (19.3)

45

40

40

35

35

30

30

25

25

20

Q1

20

15

15



10

10

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21

* Annual tax rate data through 2017 derived from S&P Analyst Handbook (income tax as percentage of pretax income), quarterly thereafter from S&P Dow Jone Indices. Source: Haver Analytics and Standard & Poor's.

Page 6 / August 11, 2019 / S&P 500 Financial Ratios

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S&P 500 and Sectors Return on Equity

Figure 9.

20

20

S&P 500 RETURN ON EQUITY*

(percent)

18

18

16

16

2017

14

14

12

12

10

10

8

8

6

Operating ROE (15.6)

6

Reported ROE (13.7)

4

4



2

2

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

* Annual operating EPS or reported EPS as a percent of average shareholders' equity. Source: Haver Analytics and Standard & Poor's Corporation.

Figure 10.

30

S&P 500 CONSUMER DISCRETIONARY RETURN ON EQUITY* (percent)

25

20

30

25 2017

20

15

15

10

10

5

5

0

0

-5

-5

-10

Operating ROE (23.2)

-10

Reported ROE (24.7)

-15

-15



-20

-20

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

* Annual operating EPS or reported EPS as a percent of average shareholders' equity. Source: Haver Analytics and Standard & Poor's Corporation.

Page 7 / August 11, 2019 / S&P 500 Financial Ratios

Yardeni Research, Inc.



S&P 500 and Sectors Return on Equity

Figure 11.

40

40

S&P 500 CONSUMER STAPLES RETURN ON EQUITY*

(percent)

35

35

30

30

25

2017

25

20

Operating ROE (25.1)

20

Reported ROE (23.4)



15

15

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

* Annual operating EPS or reported EPS as a percent of average shareholders' equity. Source: Haver Analytics and Standard & Poor's Corporation.

Figure 12.

35

35

S&P 500 ENERGY RETURN ON EQUITY*

(percent)

30

30

25

25

20

20

15

15

10

10

5

2017

5

0

0

Operating ROE (5.0)

-5

Reported ROE (6.7)

-5



-10

-10

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

* Annual operating EPS or reported EPS as a percent of average shareholders' equity. Source: Haver Analytics and Standard & Poor's Corporation.

Page 8 / August 11, 2019 / S&P 500 Financial Ratios

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