Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
AppLovin Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
The financial structure exhibits a transition from a high-leverage position characterized by a stockholders' equity deficit toward a more stable capital base supported by positive retained earnings. While total liabilities remained the dominant component of the balance sheet throughout the period, there is a observable trend toward reducing long-term debt and increasing organic equity growth.
- Liability Composition and Leverage
- Total liabilities fluctuated significantly, peaking at 104.95% in March 2021 and reaching a secondary peak of 89.92% in December 2024, before declining to 69.34% by March 2026. The primary driver of this leverage is long-term debt, which remained the largest single line item on the balance sheet. Long-term debt showed a general upward trend from mid-2021, peaking at 66.32% in March 2023, followed by a gradual reduction to 45.59% by March 2026.
- Current liabilities remained relatively stable, typically ranging between 10% and 18%, although a notable spike to 24.69% occurred in March 2025. This increase was primarily driven by rises in accounts payable and accrued liabilities, which both trended upward from 2023 through 2026, suggesting an expansion in operational obligations.
- Equity Transformation
- A fundamental shift is observed in the composition of stockholders' equity. The company moved from a deficit position of -4.96% in March 2021 to a positive equity position of 30.66% by March 2026. This recovery was not driven by new capital infusions, as additional paid-in capital saw a precipitous decline from 65.55% in June 2021 to 6.54% by March 2026.
- The most significant insight is the reversal of the retained earnings trend. Starting at a deficit of -39.02% in March 2021, the account improved steadily, crossing into positive territory in December 2024 (10.21%) and reaching 25.00% by March 2026. This indicates a transition toward sustained profitability and the ability to fund operations through internal cash flow rather than external financing.
- Solvency and Risk Indicators
- The reduction in the ratio of long-term debt relative to total assets and equity suggests a deliberate deleveraging strategy in the latter half of the analyzed period. The convergence of declining total liabilities and rising retained earnings indicates an improvement in long-term solvency.
- The volatility in current liabilities, particularly the spike in early 2025, suggests periodic fluctuations in short-term liquidity requirements, though these were mitigated by the overall increase in the equity cushion.
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