Analysis of Debt
Total Debt (Carrying Amount)
Twenty-First Century Fox Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
Total borrowings exhibited a general upward trajectory between June 30, 2013, and June 30, 2017, before experiencing a slight decline in 2018. The total carrying amount increased from 16,458 million US$ to a peak of 19,913 million US$ over a five-year period, representing an overall growth of approximately 21% before settling at 19,523 million US$ in the final reported period.
- Non-current Borrowings Analysis
- Non-current borrowings served as the primary driver of the total debt balance throughout the analyzed period. A consistent year-over-year increase was observed from 16,321 million US$ in 2013 to 19,456 million US$ in 2017. A reduction occurred in 2018, with the balance falling to 18,469 million US$, indicating a shift toward debt repayment or a decrease in long-term financing requirements.
- Current Borrowings Volatility
- Current borrowings remained relatively immaterial compared to long-term obligations but displayed significant volatility. The balance fluctuated from a low of 137 million US$ in 2013 to a peak of 1,054 million US$ in 2018. Notable increases in 2014 and 2018 suggest the tactical use of short-term credit facilities or the reclassification of long-term debt as it approached maturity.
- Debt Composition and Structural Trends
- The debt structure is characterized by a heavy reliance on long-term financing. Throughout the reporting period, non-current borrowings constituted the vast majority of the total carrying amount, consistently representing over 95% of total debt. This indicates a strategic preference for long-term capital stability over short-term liquidity-based borrowing.
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Total Debt (Fair Value)
| Jun 30, 2018 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total borrowings (fair value) | 22,591) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.16 |
Based on: 10-K (reporting date: 2018-06-30).
Weighted-average Interest Rate on Debt
Weighted average interest rate on debt: 6.01%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 7.09% | 9,829) | 697) | |
| 4.77% | 8,550) | 408) | |
| Total | 18,379) | 1,105) | |
| 6.01% | |||
Based on: 10-K (reporting date: 2018-06-30).
1 US$ in millions
2 Weighted-average interest rate = 100 × 1,105 ÷ 18,379 = 6.01%