Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Walgreens Boots Alliance Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Short-term debt	5,738)	1,966)	251)	323)	1,068)	774)
Trade accounts payable	14,341)	13,566)	12,494)	11,000)	10,088)	4,315)
Accrued expenses and other liabilities	5,474)	5,862)	5,473)	5,484)	5,225)	3,701)
Income taxes	216)	273)	329)	206)	176)	105)
Current liabilities	25,769)	21,667)	18,547)	17,013)	16,557)	8,895)
Long-term debt	11,098)	12,431)	12,684)	18,705)	13,315)	3,736)
Deferred income taxes	1,785)	1,815)	2,281)	2,644)	3,538)	1,048)
Other non-current liabilities	4,795)	5,522)	4,223)	4,045)	4,072)	2,942)
Non-current liabilities	17,678)	19,768)	19,188)	25,394)	20,925)	7,726)
Total liabilities	43,447)	41,435)	37,735)	42,407)	37,482)	16,621)
Preferred stock $.01 par value; none issued	—)	—)	—)	—)	—)	—)
Common stock $.01 par value	12)	12)	12)	12)	12)	80)
Paid-in capital	10,639)	10,493)	10,339)	10,111)	9,953)	1,172)
Employee stock loan receivable	—)	—)	—)	(1)	(2)	(5)
Retained earnings	35,815)	33,551)	30,137)	27,684)	25,089)	22,229)
Accumulated other comprehensive income (loss)	(3,897)	(3,002)	(3,051)	(2,992)	(214)	178)
Treasury stock, at cost	(19,057)	(15,047)	(9,971)	(4,934)	(3,977)	(3,197)
Total Walgreens Boots Alliance, Inc. shareholders’ equity	23,512)	26,007)	27,466)	29,880)	30,861)	20,457)
Noncontrolling interests	640)	682)	808)	401)	439)	104)
Total equity	24,152)	26,689)	28,274)	30,281)	31,300)	20,561)
Total liabilities and equity	67,599)	68,124)	66,009)	72,688)	68,782)	37,182)

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

The financial data reveals several notable trends in the company’s liabilities and equity components over the six-year period ending August 31, 2019.

Short-term Debt: The short-term debt showed considerable volatility, starting at $774 million in 2014, peaking dramatically at $5,738 million in 2019. There were fluctuations in intermediate years, with a notable dip to $251 million in 2017. The significant increase by 2019 suggests an increased reliance on short-term borrowing.
Trade Accounts Payable: There was a consistent upward trajectory in trade accounts payable, rising from $4,315 million in 2014 to $14,341 million in 2019, indicating an increasing use of supplier credit or delays in payments to vendors.
Accrued Expenses and Other Liabilities: This liability category remained relatively stable with slight fluctuations, ranging between $3,701 million and $5,862 million, showing no significant expansion or contraction over time.
Income Taxes: Income taxes payable varied without a clear trend, peaking at $329 million in 2017 and declining to $216 million in 2019, reflecting potential changes in taxable income or tax management strategies.
Current Liabilities: A steady increase in current liabilities is apparent, growing from $8,895 million in 2014 to $25,769 million in 2019, driven largely by increases in trade accounts payable and short-term debt.
Long-term Debt: Long-term debt surged from $3,736 million in 2014 to a peak of $18,705 million in 2016. It then progressively declined to $11,098 million by 2019, indicating active debt management and possible repayments following an earlier capital raise.
Deferred Income Taxes: Deferred income taxes decreased steadily from $1,048 million in 2014 to $1,785 million in 2019, suggesting changes in timing differences or tax positions.
Other Non-current Liabilities: This liability group showed moderate fluctuation but remained relatively stable, increasing from $2,942 million in 2014 to a peak of $5,522 million in 2018, then slightly declining.
Non-current Liabilities: Non-current liabilities increased significantly from $7,726 million in 2014 to a peak of $25,394 million in 2016, subsequently declining to $17,678 million by 2019, mirroring the trend observed in long-term debt.
Total Liabilities: Total liabilities more than doubled from $16,621 million in 2014 to $43,447 million in 2019, with peaks and fluctuations along the way, indicating an overall increase in the company’s leverage.
Common Stock and Paid-in Capital: Common stock value remained constant at $12 million from 2015 onward. Paid-in capital increased substantially from $1,172 million in 2014 to $10,639 million in 2019, suggesting significant capital contributions or equity financing activities.
Employee Stock Loan Receivable: This item showed minor negative balances initially but was not reported in later years, implying a de-emphasis or elimination of this asset.
Retained Earnings: Retained earnings exhibited consistent growth from $22,229 million in 2014 to $35,815 million in 2019, reflecting ongoing profitability or accumulation of income over time.
Accumulated Other Comprehensive Income (Loss): This component moved from a positive $178 million in 2014 to a negative balance of $3,897 million in 2019, indicating increased unrealized losses or adverse changes in other comprehensive income elements.
Treasury Stock: Treasury stock at cost grew markedly in magnitude, from negative $3,197 million in 2014 to negative $19,057 million in 2019, suggesting extensive share repurchases, which reduced the shareholder equity base.
Total Shareholders’ Equity: Total shareholders’ equity peaked at $30,861 million in 2015 before generally declining to $23,512 million in 2019. The decline is predominantly influenced by increasing treasury stock and accumulated other comprehensive losses, despite increases in paid-in capital and retained earnings.
Noncontrolling Interests: Noncontrolling interests increased from $104 million in 2014 to a peak at $808 million in 2017 but declined to $640 million by 2019, indicating changes in minority ownership or divestitures.
Total Equity: Total equity mirrored the shareholders’ equity trend, rising initially to $31,300 million in 2015 and then declining to $24,152 million in 2019, reflecting the combined impacts of equity repurchases, comprehensive losses, and retained earnings growth.
Total Liabilities and Equity: The total of liabilities and equity nearly doubled from $37,182 million in 2014 to a peak of $72,688 million in 2016 before stabilizing around $67,599 million in 2019. This indicates overall growth in the company’s balance sheet size.

In summary, the company experienced significant growth in liabilities, particularly short-term debt and trade accounts payable, alongside substantial equity transactions characterized by share repurchases and capital contributions. Retained earnings steadily increased, but cumulative comprehensive losses and treasury stock activities contributed to an overall reduction in total equity after 2015. The fluctuating long-term debt levels and total liabilities suggest active debt management amid an expanding balance sheet.

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Walgreens Boots Alliance Inc. (NASDAQ:WBA)

Balance Sheet: Liabilities and Stockholders’ Equity