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).
- Short-term borrowings
- The short-term borrowings show a generally downward trend over the periods analyzed. Starting from a value of 400 million USD in March 2012, the amount fluctuates with a decrease to 346 million in March 2014, further reducing to 135 million in March 2015, and sharply dropping to just 7 million by March 2016. The data for March 2011 and March 2013 are missing, but the available figures indicate a significant reduction in reliance on short-term borrowings over time.
- Current portion of long-term debt
- This component exhibits variability with a general upward trend. Beginning at 417 million in March 2011, it increased to 508 million in March 2012, then notably decreased to 352 million in March 2013. Following this, there is a substantial rise to 1,424 million in March 2014, continuing to climb to 1,529 million in March 2015, and reaching 1,612 million in March 2016. This pattern indicates a growing portion of long-term debt becoming due within the current period in recent years.
- Long-term debt, excluding current portion
- The long-term debt excluding the current portion shows a significant increase over the years but with a peak and subsequent decline. Starting at 3,587 million in March 2011, the amount decreased slightly to 3,072 million in March 2012. It then experienced a sharp increase to 4,521 million in March 2013, followed by a pronounced surge to 8,949 million in March 2014. After this peak, the figure declined to 8,180 million in March 2015 and further to 6,535 million in March 2016. This pattern suggests considerable fluctuations in long-term debt obligations.
- Total debt (carrying amount)
- The total debt reflects the combined effect of the other components with a rising trend until 2014, followed by a decrease. The total debt was approximately 4,004 million in March 2011, slightly decreasing to 3,980 million in March 2012. It then rose to 4,873 million in March 2013 and sharply increased to a peak of 10,719 million in March 2014. After peaking, total debt declined to 9,844 million in March 2015 and further down to 8,154 million in March 2016. This indicates a reduction in overall debt leveraging after rapid growth through 2014.
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%