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.

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

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Accounts payable	12,200)	7,987)	7,493)	5,128)	6,037)
Accrued compensation and benefits	17,546)	15,069)	15,140)	14,028)	13,889)
Accrued fines and settlements	15,594)	9,830)	9,525)	9,106)	9,799)
Accrued purchases of property and equipment	8,877)	7,104)	4,679)	3,019)	2,415)
Accrued customer liabilities	5,029)	4,304)	4,140)	3,619)	3,505)
Payables to brokers for unsettled investment trades	950)	3,866)	—)	—)	—)
Income taxes payable, net	523)	2,905)	2,748)	1,632)	—)
Current finance lease liabilities	441)	235)	—)	—)	—)
Short-term debt	1,996)	3,299)	1,363)	298)	113)
Other accrued expenses and current liabilities	22,147)	19,685)	23,713)	20,192)	16,212)
Accrued expenses and other current liabilities	55,557)	51,228)	46,168)	37,866)	32,044)
Accrued revenue share	10,864)	9,802)	8,876)	8,370)	8,996)
Deferred revenue	6,578)	5,036)	4,137)	3,908)	3,288)
Current liabilities	102,745)	89,122)	81,814)	69,300)	64,254)
Long-term debt, excluding current portion	46,547)	10,883)	13,253)	14,701)	14,817)
Income taxes payable, non-current	9,531)	8,782)	8,474)	9,258)	9,176)
Long-term operating lease liabilities	12,744)	11,691)	12,460)	12,501)	11,389)
Long-term finance lease liabilities	2,059)	1,442)	—)	—)	—)
Other long-term liabilities	6,390)	3,252)	3,012)	3,360)	7,997)
Long-term liabilities	77,271)	36,050)	37,199)	39,820)	43,379)
Total liabilities	180,016)	125,172)	119,013)	109,120)	107,633)
Preferred stock, $0.001 par value per share; no shares issued and outstanding	—)	—)	—)	—)	—)
Class A, Class B, and Class C stock and additional paid-in capital, $0.001 par value per share	93,126)	84,800)	76,534)	68,184)	61,774)
Accumulated other comprehensive loss	(1,916)	(4,800)	(4,402)	(7,603)	(1,623)
Retained earnings	324,055)	245,084)	211,247)	195,563)	191,484)
Stockholders’ equity	415,265)	325,084)	283,379)	256,144)	251,635)
Total liabilities and stockholders’ equity	595,281)	450,256)	402,392)	365,264)	359,268)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Overall, the liabilities and stockholders’ equity of the company demonstrate a consistent upward trend from 2021 through 2025. While liabilities experienced growth throughout the period, stockholders’ equity exhibited a more substantial increase, particularly in the later years. This suggests a strengthening financial position, although increasing liabilities warrant continued monitoring.

Current Liabilities: Current liabilities increased steadily from US$64.254 billion in 2021 to US$102.745 billion in 2025. Significant contributors to this growth include accrued expenses and other current liabilities, which rose from US$32.044 billion to US$55.557 billion. Accounts payable also showed a notable increase, nearly doubling from US$6.037 billion to US$12.200 billion over the five-year period. The introduction of payables to brokers for unsettled investment trades in 2024, peaking at US$3.866 billion, also contributed to the rise in current liabilities. Income taxes payable, net, fluctuated but generally increased before declining significantly in 2025.
Long-Term Liabilities: Long-term liabilities exhibited a more volatile pattern. They decreased from US$43.379 billion in 2021 to US$36.050 billion in 2024, before experiencing a substantial increase to US$77.271 billion in 2025. This 2025 surge is primarily attributable to a significant rise in long-term debt, excluding the current portion, which increased from US$10.883 billion to US$46.547 billion. Long-term operating lease liabilities remained relatively stable throughout the period. Other long-term liabilities also increased in 2025.
Stockholders’ Equity: Stockholders’ equity demonstrated consistent growth, increasing from US$251.635 billion in 2021 to US$415.265 billion in 2025. The primary driver of this growth was retained earnings, which increased from US$191.484 billion to US$324.055 billion. Class A, Class B, and Class C stock and additional paid-in capital also contributed to the increase, rising from US$61.774 billion to US$93.126 billion. Accumulated other comprehensive loss remained negative throughout the period, but its magnitude decreased, contributing positively to the overall equity growth.
Total Liabilities and Stockholders’ Equity: The combined value of total liabilities and stockholders’ equity increased from US$359.268 billion in 2021 to US$595.281 billion in 2025, reflecting the growth in both components. The rate of increase accelerated in the later years, particularly from 2024 to 2025, driven by the substantial increases in both long-term debt and retained earnings.

In summary, the company’s financial structure has evolved with increasing scale. The growth in liabilities, particularly long-term debt in 2025, should be monitored in relation to the company’s ability to service these obligations. The substantial growth in stockholders’ equity, driven by retained earnings, indicates strong profitability and value creation.

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Alphabet Inc. (NASDAQ:GOOG)

Balance Sheet: Liabilities and Stockholders’ Equity