Wells Fargo (NYSE:WFC) Long-Term Debt & Capital Lease Obligation

: $174,870 Mil (As of Dec. 2022)

View and export this data going back to 1962. Start your Free Trial

Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Wells Fargo's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was $174,870 Mil.

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Wells Fargo's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was $174,870 Mil. Wells Fargo's Total Assets for the quarter that ended in Dec. 2022 was $1,881,016 Mil. Wells Fargo's LT-Debt-to-Total-Asset for the quarter that ended in Dec. 2022 was 0.09.

Wells Fargo's LT-Debt-to-Total-Asset increased from Dec. 2021 (0.08) to Dec. 2022 (0.09). It may suggest that Wells Fargo is progressively becoming more dependent on debt to grow their business.

Wells Fargo Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Wells Fargo's Long-Term Debt & Capital Lease Obligation can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Wells Fargo Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Long-Term Debt & Capital Lease Obligation

229,044.00

228,191.00

212,950.00

160,689.00

174,870.00

Wells Fargo Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Long-Term Debt & Capital Lease Obligation																160,689.00	153,337.00	150,291.00	156,412.00	174,870.00

Wells Fargo Long-Term Debt & Capital Lease Obligation Calculation

Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.

Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.

The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.

A company's long term debt may have different dates of maturity and interest rates, depending on the terms.

Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.

Wells Fargo (NYSE:WFC) Long-Term Debt & Capital Lease Obligation Explanation

Wells Fargo's LT-Debt-to-Total-Asset ratio for the quarter that ended in Dec. 2022 is calculated as:

LT-Debt-to-Total-Asset (Q: Dec. 2022 )	=	Long-Term Debt & Capital Lease Obligation (Q: Dec. 2022 )	/	Total Assets (Q: Dec. 2022 )
	=	174870	/	1881016
	=	0.09

Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.

We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.

Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)

Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.

BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.

If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the companys earnings power is focused on paying off the debt and not growth.

Important: little or no long term debt often means a Good Long Term Bet

Wells Fargo Long-Term Debt & Capital Lease Obligation Related Terms

Thank you for viewing the detailed overview of Wells Fargo's Long-Term Debt & Capital Lease Obligation provided by GuruFocus.com. Please click on the following links to see related term pages.

Wells Fargo (NYSE:WFC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Wells Fargo & Co (NYSE:WFC) » Definitions » Long-Term Debt & Capital Lease Obligation

Comparable Companies

Address

420 Montgomery Street, San Francisco, CA, USA, 94104

Website

https://www.wellsfargo.com

Wells Fargo is one of the largest banks in the United States, with approximately $1.9 trillion in balance sheet assets. The company is split into four primary segments: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management. It is almost entirely focused on the U.S.

Executives

Kristy Fercho	officer: Sr. Executive Vice President	5151 CORPORATE DRIVE, TROY MI 48098
Richard K Davis	director	800 NICOLLET MALL, MINNEAPOLIS MN 55402
Felicia F Norwood	director	120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Cecelia Morken	director	26025 MUREAU ROAD, CALABASAS CA 91302
Bei Ling	officer: Sr. Executive Vice President	30 HUDSON YARDS, NEW YORK NY 10001
Kyle G Hranicky	officer: Sr. Executive Vice President	1000 LOUISIANA STREET, HOUSTON TX 77002
Kleber Santos	officer: Sr. Executive Vice President	1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Ather Iii Williams	officer: Sr. Executive Vice President	30 HUDSON YARDS, NEW YORK NY 10001
Michael P. Santomassimo	officer: Sr. EVP & CFO	225 LIBERTY STREET, NEW YORK NY 10286
Mark A Chancy	director	303 PEACHTREE ST., 30TH FLOOR, ATLANTA GA 30308
Lester Owens	officer: Sr. Executive Vice President	240 GREENWICH STREET, NEW YORK NY 10286
Barry Sommers	officer: Sr. Executive Vice President	30 HUDSON YARDS, NEW YORK NY 10001
Michael S Weinbach	officer: Sr. Executive Vice President	30 HUDSON YARDS, NEW YORK NY 10001
Steven D Black	director	C/O JPMORGAN CHASE & CO., 270 PARK AVENUE, NEW YORK NY 10017
Muneera S Carr	officer: EVP, CAO & Controller	1717 MAIN STREET, MAIL CODE 6500, DALLAS TX 75201