Stock Analysis on Net
Stock Analysis on Net

Express Scripts Holding Co. (NASDAQ:ESRX)

This company has been moved to the archive! The financial data has not been updated since October 31, 2018.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Express Scripts Holding Co., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Claims and rebates payable 18.78 17.08 17.65 15.78 12.64
Accounts payable 6.92 7.49 6.48 5.83 5.42
Accrued expenses 5.29 5.78 4.99 5.27 3.70
Short-term debt and current maturities of long-term debt 1.90 1.40 3.09 4.75 2.96
Current liabilities of discontinued operations 0.00 0.00 0.00 0.00 0.00
Current liabilities 32.89% 31.75% 32.22% 31.63% 24.72%
Long-term debt, excluding current maturities 27.61 28.69 26.19 20.47 23.09
Deferred taxes 4.72 6.96 7.64 9.15 10.16
Other liabilities 1.36 1.21 1.30 1.45 1.24
Noncurrent liabilities of discontinued operations 0.00 0.00 0.00 0.00 0.00
Noncurrent liabilities 33.70% 36.86% 35.14% 31.07% 34.49%
Total liabilities 66.59% 68.61% 67.36% 62.71% 59.21%
Preferred stock, $0.01 par value per share; and no shares issued and outstanding 0.00 0.00 0.00 0.00 0.00
Common stock, $0.01 par value per share 0.02 0.02 0.02 0.02 0.02
Additional paid-in capital 43.38 44.90 41.70 42.14 40.73
Accumulated other comprehensive income (loss) -0.01 -0.02 -0.03 0.00 0.02
Retained earnings 30.08 22.81 15.77 11.00 7.31
Common stock in treasury at cost -40.07 -36.32 -24.84 -15.89 -7.29
Total Express Scripts stockholders’ equity 33.40% 31.38% 32.63% 37.28% 40.78%
Non-controlling interest 0.01 0.02 0.01 0.02 0.01
Total stockholders’ equity 33.41% 31.39% 32.64% 37.29% 40.79%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

Liabilities Analysis
The company's total liabilities as a percentage of total liabilities and stockholders' equity demonstrated an increasing trend from 59.21% in 2013 to a peak of 68.61% in 2016, before slightly declining to 66.59% in 2017. This indicates a general increase in reliance on liabilities over the observed period.
Current liabilities showed a rising pattern from 24.72% in 2013 to 32.89% in 2017, with a notable increase between 2013 and 2014, maintaining a relatively stable level thereafter. Within current liabilities, claims and rebates payable increased markedly from 12.64% in 2013 to 18.78% in 2017, suggesting growing operational obligations in these areas.
Accounts payable also rose steadily from 5.42% to a high of 7.49% in 2016, then decreased slightly to 6.92% by 2017. Accrued expenses fluctuated somewhat but generally trended upwards from 3.7% to 5.29% over the period.
Short-term debt and current maturities of long-term debt initially increased from 2.96% in 2013 to 4.75% in 2014, but then declined to 1.9% by 2017, indicating a reduction in short-term borrowing or refinancing into longer maturities.
Noncurrent liabilities, excluding discontinued operations, displayed fluctuations rising from 34.49% in 2013 to 36.86% in 2016 before declining to 33.7% in 2017. Within this category, long-term debt showed variable changes, dropping from 23.09% in 2013 to 20.47% in 2014, then increasing to 28.69% in 2016 and slightly decreasing to 27.61% in 2017.
Deferred taxes declined steadily over the years, from 10.16% in 2013 to 4.72% in 2017, suggesting a reduced deferred tax liability burden relative to total capitalization.
Stockholders' Equity Analysis
The total stockholders’ equity as a proportion of total capitalization decreased from 40.79% in 2013 to 31.39% in 2016, followed by a slight recovery to 33.41% in 2017. This overall decline reflects increasing leverage during the period, with a minor reversal in the last year.
Retained earnings exhibited consistent growth, increasing significantly from 7.31% in 2013 to 30.08% in 2017. This increase signals enhanced profitability retention and reinvestment over time.
Additional paid-in capital remained relatively stable, with a moderate rise from 40.73% in 2013 to 43.38% in 2017, peaking at 44.9% in 2016.
Common stock remained constant at 0.02% throughout the timeframe, indicating no significant issuance or buyback altering par value shares.
The accumulated other comprehensive income (loss) fluctuated around zero, with a slight negative trend, indicating minimal impact from items such as foreign currency translation or unrealized gains/losses.
The common stock in treasury at cost showed a pronounced increase in negative value, from -7.29% in 2013 to -40.07% in 2017. This reflects substantial share repurchase activity over the years, reducing outstanding shares.
Summary Insights
The financial data reveals increasing leverage up to 2016 with the liabilities portion rising as a percentage of the capital structure, accompanied by declining equity proportions. However, the increase in retained earnings and additional paid-in capital indicates strengthening internal resources and capital investments.
The growing negative treasury stock balance suggests an aggressive share repurchase program, which may serve to enhance shareholder value and EPS figures.
The reduction in deferred taxes and the decline in short-term debt towards the end of the period points to possible strategic financial management to optimize tax position and capital structure.
Overall, the company's financial structure experienced leverage growth followed by modest deleveraging and equity strengthening, supported by profitability retention and active capital management.