Analysis of Debt
Total Debt (Carrying Amount)
Edwards Lifesciences Corp., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The analysis of total debt carrying amounts from 2017 to 2021 reveals a significant structural shift in the debt profile and a subsequent period of stability. Total debt decreased substantially between 2017 and 2018, transitioning from a combined short-term and long-term obligation to a debt structure comprised exclusively of long-term liabilities.
- Debt Composition and Structural Shift
- In 2017, the debt profile was split, with short-term debt representing 57.7% of the total carrying amount at 598,000 thousand US dollars. By 2018, short-term debt was eliminated from the records, and the total debt burden shifted entirely to long-term obligations. This transition indicates a strategic repositioning of the company's liabilities to extend maturity profiles.
- Total Debt Trajectory
- Total debt decreased from 1,036,400 thousand US dollars in 2017 to 593,800 thousand US dollars in 2018, representing a reduction of approximately 42.7%. Following this sharp decline, the total debt remained remarkably stable for the remainder of the period, ending at 595,700 thousand US dollars by December 31, 2021.
- Long-Term Debt Stability
- Long-term debt rose from 438,400 thousand US dollars in 2017 to 593,800 thousand US dollars in 2018. Between 2018 and 2021, this figure exhibited negligible growth, increasing by only 1,900 thousand US dollars over three years. This pattern suggests a highly controlled borrowing strategy with no significant new long-term debt issuance during this window.
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Total Debt (Fair Value)
| Dec 31, 2021 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Notes | 675,400) |
| Credit Agreement | —) |
| Total debt (fair value) | 675,400) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.13 |
Based on: 10-K (reporting date: 2021-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate under all debt obligations: 3.40%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.40% | 595,700) | 20,254) | |
| Total | 595,700) | 20,254) | |
| 3.40% | |||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 20,254 ÷ 595,700 = 3.40%