Analysis of Debt
Total Debt (Carrying Amount)
Micron Technology Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).
| Debt item | Description | The company |
|---|---|---|
| Total debt (carrying amount) | Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. | Micron Technology Inc. total debt increased from 2021 to 2022 and from 2022 to 2023. |
Total Debt (Fair Value)
| Aug 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Notes | 11,549) |
| Convertible notes | —) |
| Finance lease obligations | 1,281) |
| Total debt (fair value) | 12,830) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.96 |
Based on: 10-K (reporting date: 2023-08-31).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt: 5.37%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 6.18% | 587) | 36) | |
| 6.82% | 1,050) | 72) | |
| 6.94% | 970) | 67) | |
| 7.07% | 1,120) | 79) | |
| 5.07% | 499) | 25) | |
| 4.27% | 798) | 34) | |
| 5.52% | 596) | 33) | |
| 5.40% | 697) | 38) | |
| 6.54% | 1,263) | 83) | |
| 4.73% | 846) | 40) | |
| 2.77% | 995) | 28) | |
| 5.96% | 745) | 44) | |
| 6.01% | 890) | 53) | |
| 3.41% | 497) | 17) | |
| 3.52% | 496) | 17) | |
| 3.86% | 1,281) | 49) | |
| Total | 13,330) | 716) | |
| 5.37% | |||
Based on: 10-K (reporting date: 2023-08-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 716 ÷ 13,330 = 5.37%
Interest Costs Incurred
Micron Technology Inc., interest costs incurred
US$ in millions
Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).
| Debt item | Description | The company |
|---|---|---|
| Interest expense | Amount of the cost of borrowed funds accounted for as interest expense for debt. | Micron Technology Inc. interest expense increased from 2021 to 2022 and from 2022 to 2023. |
| Interest capitalized as part of the cost of property, plant, and equipment | Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. | Micron Technology Inc. interest capitalized as part of the cost of property, plant, and equipment increased from 2021 to 2022 and from 2022 to 2023. |
| Interest costs incurred | Total interest costs incurred during the period and either capitalized or charged against earnings. | Micron Technology Inc. interest costs incurred increased from 2021 to 2022 and from 2022 to 2023. |
Adjusted Interest Coverage Ratio
Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).
2023 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= -5,268 ÷ 388 = -13.58
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= -5,268 ÷ 596 = -8.84
| Solvency ratio | Description | The company |
|---|---|---|
| Adjusted interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). | Micron Technology Inc. adjusted interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |