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.
Paying user area
Try for free
McKesson Corp. pages available for free this week:
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to McKesson Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
McKesson Corp., consolidated balance sheet: liabilities and stockholders’ equity
US$ 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).
- Liabilities Trends
- Total liabilities demonstrate a consistent upward trajectory over the observed periods, increasing from $23,666 million in 2011 to $46,149 million in 2016. Current liabilities exhibit a marked increase, particularly from 2013 to 2014, rising sharply from $21,357 million to $29,501 million, and continuing upward to $35,071 million by 2016. Drafts and accounts payable follow a similar pattern, with notable growth from $14,090 million in 2011 to $28,585 million in 2016.
- Short-term borrowings remain relatively low and variable, peaking at $400 million in 2012, then falling to a minimal $7 million by 2016. Deferred revenue steadily decreases from $1,321 million in 2011 to $919 million in 2016, indicating a possible decline in prepaid customer receipts or revenue recognition changes.
- Deferred tax liabilities show an initial increase from $1,037 million to $1,820 million between 2011 and 2015, with missing data for 2016. The current portion of long-term debt fluctuates but trends upward overall, from $417 million in 2011 to $1,612 million in 2016, implying a growing near-term debt obligation.
- Other accrued liabilities grow notably, more than doubling from $1,861 million in 2011 to $3,948 million in 2016. Noncurrent liabilities increase significantly, more than doubling from $4,940 million in 2011 to $11,078 million in 2016, driven by increases in long-term debt (excluding current portion) which peaks at $8,949 million in 2014 before declining to $6,535 million in 2016.
- Long-term deferred tax liabilities show a rising trend from 2012 onward, surging to $2,734 million in 2016 after an initial climb. Other noncurrent liabilities exhibit moderate growth, from $1,353 million in 2011 to $1,809 million in 2016.
- Equity and Capital Structure
- Total equity moves upward overall, growing from $7,220 million in 2011 to $9,008 million in 2016, with some fluctuations during the period. The total stockholders’ equity follows a similar pattern, with a peak of $8,924 million in 2016 after a slight dip in 2015.
- Retained earnings increase steadily from $8,250 million in 2011 to $12,705 million in 2015, before declining sharply to $8,360 million in 2016, possibly reflecting an impairment, loss, dividend payout, or accounting adjustment. Additional paid-in capital generally trends upward until 2015, then drops to $5,845 million in 2016.
- Accumulated other comprehensive income (loss) becomes more negative over time, deteriorating from a positive $87 million in 2011 to a negative $1,561 million in 2016, indicating increasing unrealized losses or other comprehensive losses.
- Treasury shares at cost deepen significantly through 2015, reaching a high of -$9,956 million, then reverse partially to -$3,721 million in 2016, suggesting possible repurchases or reissuances affecting equity reserves.
- Noncontrolling interests emerge in 2014 at $1,796 million, then drop to $84 million in subsequent years, reflecting changes in ownership stakes or consolidation.
- Overall Observations
- The financial data indicates strong growth in liabilities, especially current liabilities and total debt, reflecting increased leverage or operational scale. The company’s equity shows resilience despite fluctuations, supported by retained earnings growth until 2015 and continued capital contributions.
- The sharp decline in retained earnings and additional paid-in capital in 2016, alongside an improvement in treasury shares, suggests significant financial restructuring or extraordinary transactions impacting equity.
- The growing negative accumulated other comprehensive income signals increasing exposure to unrealized losses, which may affect comprehensive profitability. The shifts in noncontrolling interests denote changes in ownership that could influence control or financial consolidation.
- In summary, the company exhibits increasing financial obligations and complex equity movements over the analyzed period, highlighting evolving capital structure dynamics and potential risk factors related to leverage and comprehensive loss elements.