Analysis of Debt
Total Debt (Carrying Amount)
McKesson Corp., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).
The total debt carrying amount experienced a period of relative stability between 2011 and 2013, followed by a significant expansion in 2014 and a subsequent gradual reduction through 2016. Total debt increased from 4,004 million USD in 2011 to a peak of 10,719 million USD in 2014, representing a substantial increase in leverage during that window, before declining to 8,154 million USD by March 31, 2016.
- Long-Term Debt Dynamics
- The primary driver of the total debt increase was the long-term debt excluding the current portion, which surged from 3,072 million USD in 2012 to 8,949 million USD in 2014. Following this peak, a downward trend was observed, with the balance decreasing to 6,535 million USD by 2016, indicating a period of debt repayment or refinancing.
- Current Maturity Profile
- A notable shift occurred in the current portion of long-term debt, which rose sharply from 352 million USD in 2013 to 1,424 million USD in 2014. This figure continued to climb steadily over the following two years, reaching 1,612 million USD in 2016. This trend suggests a growing concentration of debt obligations maturing within the short term.
- Short-Term Borrowing Trends
- Short-term borrowings exhibited a consistent decline after 2012. From a high of 400 million USD in 2012, these borrowings were reduced to 7 million USD by March 31, 2016, effectively eliminating this component of the debt structure.
Overall, the debt structure transitioned from a relatively low leverage position in 2011 to a high-leverage peak in 2014, characterized by a heavy reliance on long-term instruments. The subsequent years show a strategic reduction in total debt, although the increasing current portion of long-term debt indicates an accelerating schedule of near-term repayments.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Total Debt (Fair Value)
| Mar 31, 2016 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Short-term borrowings | 7) |
| Long-term debt and other financing arrangements, including current portion | 8,600) |
| Total debt (fair value) | 8,607) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.06 |
Based on: 10-K (reporting date: 2016-03-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 3.86%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 5.70% | 500) | 29) | |
| 1.29% | 700) | 9) | |
| 1.40% | 500) | 7) | |
| 7.50% | 350) | 26) | |
| 2.28% | 1,100) | 25) | |
| 4.75% | 599) | 28) | |
| 2.70% | 400) | 11) | |
| 2.85% | 400) | 11) | |
| 3.80% | 1,100) | 42) | |
| 7.65% | 175) | 13) | |
| 6.00% | 493) | 30) | |
| 4.88% | 800) | 39) | |
| 4.00% | 403) | 16) | |
| 4.50% | 583) | 26) | |
| Total | 8,103) | 313) | |
| 3.86% | |||
Based on: 10-K (reporting date: 2016-03-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 313 ÷ 8,103 = 3.86%