Name: McKesson Corp. (NYSE:MCK) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

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.

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McKesson Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Mar 31, 2016	Mar 31, 2015	Mar 31, 2014	Mar 31, 2013	Mar 31, 2012	Mar 31, 2011
Drafts and accounts payable	28,585)	25,166)	21,429)	16,108)	16,114)	14,090)
Short-term borrowings	7)	135)	346)	—)	400)	—)
Deferred revenue	919)	1,078)	1,236)	1,359)	1,423)	1,321)
Deferred tax liabilities	—)	1,820)	1,588)	1,626)	1,092)	1,037)
Current portion of long-term debt	1,612)	1,529)	1,424)	352)	508)	417)
Other accrued liabilities	3,948)	3,769)	3,478)	1,912)	2,149)	1,861)
Current liabilities	35,071)	33,497)	29,501)	21,357)	21,686)	18,726)
Long-term debt, excluding current portion	6,535)	8,180)	8,949)	4,521)	3,072)	3,587)
Long-term deferred tax liabilities	2,734)	859)	1,283)	278)	88)	—)
Other noncurrent liabilities	1,809)	1,863)	1,708)	1,560)	1,416)	1,353)
Noncurrent liabilities	11,078)	10,902)	11,940)	6,359)	4,576)	4,940)
Total liabilities	46,149)	44,399)	41,441)	27,716)	26,262)	23,666)
Redeemable noncontrolling interests	1,406)	1,386)	—)	—)	—)	—)
Preferred stock, $0.01 par value, no shares issued or outstanding	—)	—)	—)	—)	—)	—)
Common stock, $0.01 par value	3)	4)	4)	4)	4)	4)
Additional paid-in capital	5,845)	6,968)	6,552)	6,078)	5,571)	5,339)
Retained earnings	8,360)	12,705)	11,453)	10,402)	9,451)	8,250)
Accumulated other comprehensive income (loss)	(1,561)	(1,713)	(3)	(65)	5)	87)
Other	(2)	(7)	23)	14)	4)	10)
Treasury shares, at cost	(3,721)	(9,956)	(9,507)	(9,363)	(8,204)	(6,470)
Total McKesson Corporation stockholders’ equity	8,924)	8,001)	8,522)	7,070)	6,831)	7,220)
Noncontrolling interests	84)	84)	1,796)	—)	—)	—)
Total equity	9,008)	8,085)	10,318)	7,070)	6,831)	7,220)
Total liabilities, redeemable noncontrolling interests and equity	56,563)	53,870)	51,759)	34,786)	33,093)	30,886)

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).

Total liabilities experienced significant growth between 2011 and 2016, increasing from 23,666 million USD to 46,149 million USD. This upward trajectory was primarily driven by a substantial rise in current liabilities, which climbed from 18,726 million USD to 35,071 million USD over the same period.

Operational Liability Trends: Drafts and accounts payable represent the largest component of the liability structure, showing a consistent and sharp increase from 14,090 million USD in 2011 to 28,585 million USD in 2016. This suggests a significant expansion in trade credit utilization or an increase in the volume of business operations.
Debt Profile and Financing: Long-term debt, excluding the current portion, exhibited a peak in 2014 at 8,949 million USD before declining to 6,535 million USD by 2016. Conversely, the current portion of long-term debt rose sharply in 2014 to 1,424 million USD and remained elevated, ending at 1,612 million USD in 2016, indicating a shift in the maturity profile of the company's obligations.
Noncurrent Liability Shifts: Noncurrent liabilities grew from 4,940 million USD in 2011 to 11,078 million USD in 2016. A notable increase is observed in long-term deferred tax liabilities, which rose from 88 million USD in 2012 to 2,734 million USD by 2016, reflecting changes in tax positioning or accounting treatments.
Equity and Retained Earnings Dynamics: Total McKesson Corporation stockholders’ equity remained relatively stable between 2011 and 2013, before fluctuating in the later years. Retained earnings grew steadily from 8,250 million USD in 2011 to a peak of 12,705 million USD in 2015, followed by a sharp decline to 8,360 million USD in 2016.
Treasury Stock and Comprehensive Income: Treasury shares at cost increased steadily from 6,470 million USD in 2011 to 9,956 million USD in 2015, suggesting aggressive share repurchase activity. However, this figure dropped significantly to 3,721 million USD in 2016. Simultaneously, accumulated other comprehensive income transitioned from a positive 87 million USD in 2011 to a substantial loss of 1,561 million USD by 2016.
Capital Structure Summary: The total balance sheet size, including liabilities and equity, expanded from 30,886 million USD in 2011 to 56,563 million USD in 2016. The growth is heavily weighted toward liabilities, as total equity grew more modestly from 7,220 million USD to 8,924 million USD over the period, indicating an increase in financial leverage.

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