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.
Paying user area
Try for free
Alphabet Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Alphabet Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Alphabet Inc., consolidated balance sheet: liabilities and stockholders’ equity
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
The analysis of the annual financial data reveals several noteworthy trends in the company's liabilities, equity, and overall financial position over the five-year period.
- Current Liabilities
- There is a marked increase in current liabilities from 56,834 million US$ in 2020 to 89,122 million US$ in 2024, representing a substantial rise. Most notably, accounts payable exhibit volatility with a decline in 2022 followed by a sharp increase thereafter. Accrued compensation and benefits steadily increase throughout the period, indicating rising personnel-related costs. Other components like accrued purchases of property and equipment and other accrued expenses and current liabilities also show consistent growth, suggesting increased operational and investment activities. Short-term debt fluctuates but rises considerably in the final years, which may reflect changing financing strategies or short-term funding needs.
- Long-Term Liabilities
- Long-term liabilities display a declining trend, falling from 40,238 million US$ in 2020 to 36,050 million US$ in 2024. This decrease is influenced mainly by reductions in long-term debt (excluding current portion) and other long-term liabilities, despite slight fluctuations. Operating lease liabilities remain relatively stable with minor variations, whereas finance lease liabilities appear only in later years with rising values, indicating new lease obligations assumed during the period.
- Total Liabilities
- Total liabilities increase steadily from 97,072 million US$ in 2020 to 125,172 million US$ in 2024, driven predominantly by growth in current liabilities. The combination of rising short-term obligations and relatively stable or declining long-term liabilities suggests a strategic shift or evolving balance sheet structure.
- Stockholders’ Equity
- Stockholders’ equity shows a consistent upward trajectory, increasing from 222,544 million US$ in 2020 to 325,084 million US$ in 2024. Increases in retained earnings are significant, reflecting profitability and earnings retention, while capital stock and additional paid-in capital also grow steadily, implying ongoing equity financing or shareholder value appreciation. However, accumulated other comprehensive income exhibits a negative trend after 2020, indicating losses or decreased unrealized gains in certain comprehensive income items.
- Overall Financial Position
- The total sum of liabilities and stockholders’ equity grows from 319,616 million US$ in 2020 to 450,256 million US$ in 2024. This growth is primarily propelled by increasing equity and current liabilities rather than long-term liabilities. The rising retained earnings and equity base suggest strong internal capital generation and financial strength. Simultaneously, elevated current liabilities may raise liquidity considerations that warrant ongoing monitoring.
In summary, the company demonstrates expanding operational scale and financing activity, reflected by rising current liabilities and equity growth. The decline in long-term debt suggests a possible deleveraging or restructuring effort, while sustained growth in retained earnings underscores continued profitability and wealth accumulation for shareholders. Attention to the composition and management of current liabilities will be important to maintain financial stability amid this growth.