Analysis of Debt
Total Debt (Carrying Amount)
Boston Scientific Corp., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2022-12-31), 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).
Total debt obligations experienced a significant increase between 2018 and 2019, followed by a period of gradual deleveraging from 2020 through 2022. The debt profile shifted markedly toward long-term financing, reducing the company's reliance on short-term borrowing.
- Total Outstanding Debt Trajectory
- Total carrying amounts rose from 7,056 million USD in 2018 to a peak of 10,008 million USD in 2019. Following this peak, a consistent downward trend is observed, with the total amount decreasing to 9,143 million USD in 2020, 9,065 million USD in 2021, and ending at 8,935 million USD by December 31, 2022.
- Current Debt Obligations
- Short-term debt obligations show a substantial reduction over the analyzed period. From a high of 2,253 million USD in 2018, these obligations declined to 1,416 million USD in 2019 and reached a low of 13 million USD in 2020. Despite a brief increase to 261 million USD in 2021, current debt returned to a minimal level of 20 million USD by the end of 2022.
- Long-Term Debt Stability
- Long-term debt constitutes the primary component of the debt structure. A significant expansion occurred between 2018 and 2019, where obligations increased from 4,803 million USD to 8,592 million USD. In the subsequent three years, this figure remained relatively stable, fluctuating within a tight range between 8,804 million USD and 9,130 million USD.
The analysis indicates a strategic transition in the debt maturity profile. By significantly reducing current debt obligations while maintaining a stable long-term debt balance, the organization has effectively mitigated short-term refinancing risks and shifted its leverage toward a more permanent capital structure.
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Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Outstanding debt obligations | 8,203) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.92 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 2.65%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.45% | 504) | 17) | |
| 0.75% | 1,067) | 8) | |
| 1.90% | 500) | 10) | |
| 3.75% | 255) | 10) | |
| 0.63% | 960) | 6) | |
| 1.38% | 800) | 11) | |
| 4.00% | 344) | 14) | |
| 4.00% | 272) | 11) | |
| 2.65% | 1,200) | 32) | |
| 1.63% | 800) | 13) | |
| 1.88% | 534) | 10) | |
| 6.75% | 350) | 24) | |
| 4.55% | 450) | 20) | |
| 7.38% | 300) | 22) | |
| 4.70% | 650) | 31) | |
| Total | 8,986) | 238) | |
| 2.65% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 238 ÷ 8,986 = 2.65%