Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
Applied Materials Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)
Based on: 10-Q (reporting date: 2026-01-25), 10-K (reporting date: 2025-10-26), 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26).
The composition of liabilities and stockholders’ equity exhibited notable shifts over the observed period from January 2020 to October 2025. Current liabilities generally represented a significant portion of the total, while long-term debt and stockholders’ equity comprised the remaining substantial components. Several key trends emerged regarding the relative proportions of these items.
- Current Liabilities
- Current liabilities as a percentage of total liabilities and stockholders’ equity initially decreased from 23.11% in January 2020 to a low of 19.95% in October 2020. A subsequent increase was observed, peaking at 27.61% in October 2022, before declining to 22.04% by October 2024. A slight increase to 24.61% was noted in July 2024, followed by a decrease to 23.20% in January 2025. This suggests a fluctuating need for short-term financing, potentially linked to operational cycles or investment timing.
- Long-Term Debt
- Long-term debt demonstrated a more moderate fluctuation. It began at 23.85% in January 2020, peaked at 36.79% in April 2020, and generally trended downwards to 17.77% in October 2021. The proportion remained relatively stable between 15.87% and 18.30% from July 2022 to July 2024, before increasing to 17.78% in October 2025. This indicates a strategic management of long-term financing obligations.
- Stockholders’ Equity
- Stockholders’ equity consistently represented a substantial portion of the capital structure, generally ranging between 41.37% and 57.69%. A general upward trend was observed from 41.37% in April 2020 to a peak of 57.01% in October 2025. This suggests increasing retained earnings and/or share repurchases, as evidenced by the offsetting trend in treasury stock. The significant negative value associated with treasury stock consistently reduced the overall stockholders’ equity percentage.
- Contract Liabilities
- Contract liabilities exhibited a clear upward trend from 7.08% in January 2020 to 11.76% in October 2022. After reaching a high of 10.81% in May 2022, the percentage decreased to 7.07% in October 2025. This suggests a growing reliance on deferred revenue, followed by a recent reduction, potentially indicating revenue recognition or changes in contract terms.
- Income Taxes Payable
- Income taxes payable showed a consistent decline over the period, decreasing from 6.57% in January 2020 to 0.95% in January 2025, and then slightly increasing to 1.35% in October 2025. This decrease likely reflects changes in tax liabilities or improved tax planning strategies.
- Short-Term Debt
- Short-term debt remained a relatively small component of the overall capital structure. It fluctuated around 3% in early periods, decreased significantly to 0.33% in October 2020, and then increased to 2.32% in October 2024 before decreasing again to 0.27% in January 2025. This suggests a limited reliance on short-term borrowing.
Overall, the company demonstrated a dynamic balance sheet composition, adapting to changing financial conditions. The increasing trend in stockholders’ equity, coupled with the strategic management of long-term debt, suggests a strengthening financial position. The fluctuations in current liabilities and contract liabilities warrant continued monitoring to assess their impact on liquidity and revenue recognition.
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