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AZNAstraZeneca PLC
$168.37$130.5B
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  4. Financial Ratios

AstraZeneca PLC (AZN) Financial Ratios

Latest Ratios: P/E Ratio 12.9x · EV/EBITDA 7.9x · ROE 22.9%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

AZN Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$130.5B$137.1B$101.6B$105.0B$106.3B$82.7B$66.3B$65.7B$48.1B$44.0B$34.1B
Enterprise Value$154.5B$161.1B$126.2B$127.8B$129.2B$107.0B$78.9B$78.6B$62.4B$58.4B$45.9B
P/E Ratio →12.8713.4214.4417.6432.28724.0620.7049.0322.3414.649.76
P/S Ratio2.222.331.882.292.402.212.492.692.181.961.48
P/B Ratio2.702.812.492.682.872.104.244.503.432.642.05
P/FCF15.0515.8113.9615.9914.6821.9730.24129.0838.5922.4518.62
P/OCF8.959.408.5710.1510.8313.8613.8222.1318.3812.298.23

P/E links to full P/E history page with 30-year chart

AZN EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—2.742.332.792.912.862.963.222.822.602.00
EV / EBITDA7.938.278.389.7314.3420.759.7911.758.748.716.32
EV / EBIT11.2411.4312.1715.0633.73105.8515.2026.6318.5816.299.33
EV / FCF—18.5817.3519.4617.8628.4435.96154.3450.0429.8525.06

AZN Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin81.9%81.9%81.1%82.0%72.1%66.8%80.1%79.8%77.7%80.8%82.1%
Operating Margin23.4%23.4%18.5%17.9%8.5%2.8%19.4%12.0%15.3%16.4%21.3%
Net Profit Margin17.5%17.5%13.0%13.0%7.4%0.3%12.0%5.5%9.8%13.4%15.2%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE22.9%22.9%17.6%15.6%8.6%0.4%21.1%9.3%14.0%18.0%19.9%
ROA9.4%9.4%6.9%6.0%3.3%0.1%5.0%2.2%3.5%4.8%5.7%
ROIC14.9%14.9%11.8%10.1%4.6%1.7%13.9%7.9%8.5%9.3%13.2%
ROCE17.2%17.2%13.6%11.6%4.9%1.6%11.5%6.7%7.4%7.8%10.6%

AZN Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.610.610.740.730.790.781.301.251.361.071.01
Debt / EBITDA1.531.532.002.183.235.952.532.732.682.652.32
Net Debt / Equity—0.490.600.580.620.620.800.881.020.870.71
Net Debt / EBITDA1.231.231.631.742.554.721.561.922.002.161.62
Debt / FCF—2.773.393.473.176.475.7225.2611.457.406.44
Interest Coverage8.328.326.175.342.880.794.082.102.462.643.60

AZN Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.940.940.930.820.861.160.960.860.960.800.87
Quick Ratio0.720.720.740.640.680.760.760.680.780.620.72
Cash Ratio0.190.190.200.190.240.280.390.340.350.280.39
Asset Turnover—0.510.520.450.460.360.400.400.360.350.37
Inventory Turnover1.621.621.931.522.641.381.321.541.711.421.77
Days Sales Outstanding—94.3175.8466.9875.6579.3377.4973.2949.4945.5340.99

AZN Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield3.8%3.6%4.6%4.3%4.1%4.7%5.4%5.5%7.2%8.0%10.4%
Payout Ratio48.5%48.5%65.8%75.2%132.7%3442.9%111.8%269.1%161.7%117.3%101.8%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield7.8%7.5%6.9%5.7%3.1%0.1%4.8%2.0%4.5%6.8%10.2%
FCF Yield6.6%6.3%7.2%6.3%6.8%4.6%3.3%0.8%2.6%4.5%5.4%
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield3.8%3.6%4.6%4.3%4.1%4.7%5.4%5.5%7.2%8.0%10.4%
Shares Outstanding—$781M$782M$781M$780M$714M$657M$651M$634M$634M$633M

Key Metrics

Growth RegimeStable
ProfitabilityStrong
Balance SheetHealthy
Cash FlowStable
Top Statement Risk

IRA pricing and China exposure

Margin Resilience Amidst Cost Pressures

Gross margin expanded to 83.6% in 2026Q2, up from 82.9% a year earlier, while operating margin contracted to 20.6% from 24.3%, reflecting higher R&D and SG&A intensity, as per quarterly filings.

The gross margin expansion underscores the high-value biologic and specialty portfolio, but the operating margin compression suggests that investment in pipeline and commercialization is absorbing the incremental revenue. Net margin of 16.3% in 2026Q2 is below the 20%+ levels seen in early 2025, indicating that non-operating items or tax effects are weighing on bottom-line profitability. Investors should monitor whether the R&D intensity, which exceeded 20% of revenue, translates into sustained top-line growth or if it merely pressures near-term earnings.

Return on Capital Stabilizing After Deleveraging

ROIC improved to 3.1% in 2026Q2 from 2.3% in 2024Q4, while ROE rose to 5.1% from 3.7%, as per reported figures, indicating a gradual recovery in capital efficiency.

The improvement in ROIC and ROE is modest but consistent, driven by margin stabilization and a lower capital base as debt is repaid. However, the absolute levels remain low relative to peers like Merck (ROIC 22%) and Lilly (41.8%), reflecting the heavy intangible asset base from acquisitions like Alexion. The trend suggests that the company is slowly digesting the acquisition, but the return on capital is unlikely to reach peer levels without significant operational leverage or further margin expansion.

Working Capital Efficiency Driven by Supplier Leverage

Cash conversion cycle improved to -486 days in 2026Q2 from -173 days in 2024Q1, driven by a DPO of 818 days, as per financial statements, indicating significant supplier financing.

The negative cash conversion cycle is a hallmark of AstraZeneca's business model, where it collects cash from customers long before paying suppliers, effectively using supplier credit as a source of funding. The DPO of 818 days is exceptionally high, suggesting strong bargaining power with suppliers, but it may also reflect the timing of large milestone payments or collaboration obligations. Asset turnover remains low at 0.13, typical for pharma, but the working capital efficiency partially compensates for the heavy asset base.

Leverage Easing as Debt Service Improves

Debt-to-equity improved to 0.64 in 2026Q2 from 0.92 in 2024Q1, while interest coverage rose to 7.43 from 4.88, as per balance sheet data, indicating a more comfortable debt position.

The deleveraging trend is clear, with total debt stable at $32.2B while equity grows, reflecting retained earnings and a disciplined approach to debt repayment. Interest coverage of 7.43 is adequate, though it remains below the double-digit levels seen in early 2025, suggesting that operating income volatility could pressure coverage if margins contract further. The D/EBITDA ratio of 6.32 is elevated but improving, and investors should monitor the refinancing risk given the $39B Alexion debt, though the current trajectory appears manageable.

Thin Liquidity Buffer Despite Stable Operations

Current ratio dipped to 0.89 in 2026Q2, below the 1.0 threshold, with quick ratio at 0.67, as per recent filings, indicating a tight liquidity position.

The sub-1.0 current ratio suggests that AstraZeneca relies on ongoing cash flows and access to credit markets to meet short-term obligations, which is typical for large pharma with predictable revenue streams. However, the thin buffer could be a concern if a major disruption occurs, such as a large settlement or a sudden drop in revenue from IRA price negotiations. The negative working capital is partly a result of high DPO, but it also means the company is dependent on its ability to roll over commercial paper or draw on credit lines.

P/E Misleading Due to Intangible Amortization

The trailing P/E of 12.08 appears low, but it is distorted by non-cash amortization from the Alexion acquisition, which depresses reported earnings, as per accounting disclosures.

The reported P/E understates the company's true earning power because it includes significant amortization of intangibles that do not reflect cash outflows. A more appropriate metric is EV/EBITDA, which at 7.52 is also low but better captures cash-generating ability. Alternatively, investors should use P/FCF (14.12) or adjust net income by adding back amortization to get a clearer picture of underlying profitability. The low P/E may be a value trap if the market is not adjusting for these non-cash charges, but it also suggests that the market is pricing in growth risks from IRA and China.

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AZN — Frequently Asked Questions

Quick answers to the most common questions about buying AZN stock.

What is AstraZeneca PLC's P/E ratio?

AstraZeneca PLC's current P/E ratio is 12.9x. The historical average is 14.5x. This places it at the 45th percentile of its historical range.

What is AstraZeneca PLC's EV/EBITDA?

AstraZeneca PLC's current EV/EBITDA is 7.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.3x.

What is AstraZeneca PLC's ROE?

AstraZeneca PLC's return on equity (ROE) is 22.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.1%.

Is AZN stock overvalued?

Based on historical data, AstraZeneca PLC is trading at a P/E of 12.9x. This is at the 45th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is AstraZeneca PLC's dividend yield?

AstraZeneca PLC's current dividend yield is 3.78% with a payout ratio of 48.5%.

What are AstraZeneca PLC's profit margins?

AstraZeneca PLC has 81.9% gross margin and 23.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does AstraZeneca PLC have?

AstraZeneca PLC's Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.