Walgreens Boots Alliance Inc., balance sheet: debt

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)
Long-term debt	11,098)	12,431)	12,684)	18,705)	13,315)	3,736)
Total borrowings (carrying amount)	16,836)	14,397)	12,935)	19,028)	14,383)	4,510)

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 debt data reveals significant fluctuations and notable trends across the analyzed period from 2014 to 2019.

Short-term debt: The short-term debt exhibited considerable volatility. Starting at $774 million in 2014, it increased to $1,068 million in 2015, followed by a substantial decline to $323 million in 2016 and a slight decrease to $251 million in 2017. A sharp rebound occurred in 2018, with short-term debt rising to $1,966 million, and this upward trajectory continued markedly into 2019, reaching $5,738 million. This indicates an increasing reliance on short-term borrowings in the latter years.
Long-term debt: Long-term debt showed an overall increasing trend from 2014 to 2016, rising from $3,736 million to $18,705 million. However, after the peak in 2016, it decreased notably to $12,684 million in 2017 and maintained a downward trend through 2018 and 2019, settling at $11,098 million. This suggests a strategic reduction or refinancing of longer-term obligations after reaching a maximum in 2016.
Total borrowings (carrying amount): Total borrowings reflected the combined impact of short-term and long-term debt movements. There was a significant increase from $4,510 million in 2014 to a peak of $19,028 million in 2016. Subsequently, total borrowings declined sharply to $12,935 million in 2017, before experiencing a moderate rise again to $14,397 million in 2018 and further increasing to $16,836 million in 2019. This pattern demonstrates a peak in total borrowings in 2016, followed by partial deleveraging and a renewed increase towards the end of the period.

Overall, the data indicates a dynamic capital structure management approach, with a shift over time from long-term to increased short-term debt reliance, particularly notable in the last two years. The peak in both short-term and total borrowings in the most recent year suggests a potential change in financing strategy or liquidity needs.

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	Aug 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings	4,488)
Unsecured Pound Sterling variable rate term loan due 2019	—)
$6 Billion Note Issuance	2,600)
$8 Billion Note Issuance	6,800)
£700 Million Note Issuance	900)
€750 Million Note Issuance	900)
$4 Billion Note Issuance	1,700)
$1 Billion Note Issuance	—)
Other	25)
Total borrowings (fair value)	17,413)
Financial Ratio
Debt, fair value to carrying amount ratio	1.03

Based on: 10-K (reporting date: 2019-08-31).

Weighted-average interest rate on debt: 3.49%

Interest rate	Debt amount¹	Interest rate × Debt amount
3.45%	1,890)	65)
4.65%	591)	27)
3.30%	1,247)	41)
3.80%	1,992)	76)
4.50%	495)	22)
4.80%	1,492)	72)
2.88%	488)	14)
3.60%	365)	13)
2.13%	824)	18)
3.10%	1,197)	37)
4.40%	493)	22)
3.07%	2,400)	74)
2.70%	1,250)	34)
Total	14,724)	514)
3.49%

Based on: 10-K (reporting date: 2019-08-31).

¹ US$ in millions

² Weighted-average interest rate = 100 × 514 ÷ 14,724 = 3.49%

Walgreens Boots Alliance Inc. (NASDAQ:WBA)

Analysis of Debt

Total Debt (Carrying Amount)

Total Debt (Fair Value)

Weighted-average Interest Rate on Debt