Name: Abiomed Inc. (NASDAQ:ABMD) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

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.

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Abiomed Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Accounts payable	35,346)	34,842)	32,774)	32,185)	23,565)	20,620)
Employee compensation	50,649)	40,954)	32,273)	32,926)	30,330)	23,290)
Research and development	7,337)	6,983)	5,749)	3,309)	3,162)	2,349)
Marketing	2,289)	3,674)	1,705)	1,707)	2,305)	1,827)
Warranty	1,935)	2,053)	1,818)	1,272)	1,081)	717)
Sales and income taxes	1,931)	5,914)	21,641)	12,262)	4,562)	3,180)
Professional, legal and accounting fees	1,479)	1,957)	6,880)	2,757)	1,870)	2,019)
Other	7,009)	4,511)	5,041)	3,187)	2,837)	4,321)
Accrued expenses	72,629)	66,046)	75,107)	57,420)	46,147)	37,703)
Deferred revenue	26,362)	24,322)	19,147)	16,393)	14,970)	10,495)
Other current liabilities	4,120)	3,759)	4,857)	—)	—)	—)
Current portion of capital lease obligation	—)	—)	—)	—)	—)	799)
Current liabilities	138,457)	128,969)	131,885)	105,998)	84,682)	69,617)
Other long-term liabilities	9,319)	10,162)	9,305)	1,061)	776)	3,251)
Contingent consideration	21,510)	24,706)	9,000)	9,575)	10,490)	9,153)
Deferred tax liabilities	781)	847)	806)	822)	903)	783)
Capital lease obligation, net of current portion	—)	—)	—)	—)	—)	15,539)
Long-term liabilities	31,610)	35,715)	19,111)	11,458)	12,169)	28,726)
Total liabilities	170,067)	164,684)	150,996)	117,456)	96,851)	98,343)
Class B Preferred Stock, $.01 par value; none issued and outstanding	—)	—)	—)	—)	—)	—)
Common stock, $.01 par value	455)	453)	451)	451)	444)	437)
Additional paid in capital	870,074)	800,690)	739,133)	690,507)	619,905)	565,962)
Retained earnings (accumulated deficit)	964,512)	828,007)	602,482)	399,473)	140,457)	(46,959)
Treasury stock at cost	(304,555)	(288,030)	(265,411)	(138,852)	(67,078)	(46,763)
Accumulated other comprehensive loss	(27,160)	(11,445)	(11,189)	(14,689)	(4,204)	(20,606)
Stockholders’ equity	1,503,326)	1,329,675)	1,065,466)	936,890)	689,524)	452,071)
Total liabilities and stockholders’ equity	1,673,393)	1,494,359)	1,216,462)	1,054,346)	786,375)	550,414)

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

The financial position of the entity reflects a period of substantial capital expansion and a strengthening of the solvency profile between March 31, 2017, and March 31, 2022. Total liabilities and stockholders' equity grew from 550.4 million US dollars to 1.67 billion US dollars, driven primarily by an aggressive increase in equity rather than a reliance on debt.

Current Liabilities Trends: Current liabilities exhibited a consistent upward trajectory, increasing from 69.6 million US dollars in 2017 to 138.5 million US dollars in 2022. This growth is largely attributed to rising accounts payable and a significant increase in employee compensation obligations, which more than doubled over the period. Deferred revenue also showed steady growth, rising from 10.5 million US dollars to 26.4 million US dollars, indicating a sustained increase in advance payments or contractual obligations to be fulfilled.
Long-Term Obligations: Long-term liabilities remained relatively contained compared to equity growth, ending at 31.6 million US dollars in 2022. A notable fluctuation occurred in contingent consideration, which surged to 24.7 million US dollars in 2021 before moderating to 21.5 million US dollars in 2022. Capital lease obligations, which were present in 2017, were fully eliminated in subsequent reporting periods.
Stockholders' Equity and Retained Earnings: Stockholders' equity experienced an exceptional increase, growing from 452.1 million US dollars in 2017 to 1.5 billion US dollars in 2022. The most significant driver of this expansion was the reversal of a retained earnings deficit. The entity moved from an accumulated deficit of 46.9 million US dollars in 2017 to a substantial surplus of 964.5 million US dollars by 2022, reflecting strong cumulative profitability.
Share Capital and Treasury Activity: Additional paid-in capital rose steadily from 566.0 million US dollars to 870.1 million US dollars. Simultaneously, there was a marked increase in treasury stock at cost, which grew from 46.8 million US dollars in 2017 to 304.6 million US dollars in 2022. This pattern indicates an aggressive share repurchase strategy funded by the entity's growing cash reserves and earnings.
Overall Solvency and Leverage: The leverage profile improved significantly over the six-year period. Total liabilities grew by approximately 73%, while stockholders' equity grew by over 230%. Consequently, the proportion of total assets funded by liabilities decreased, resulting in a highly equity-heavy capital structure and a strengthened financial cushion against potential volatility.

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