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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Applied Materials Inc., consolidated balance sheet: liabilities and stockholders’ equity
US$ in millions
Based on: 10-K (reporting date: 2025-10-26), 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25).
The financial data reveals several notable trends in the company's liabilities, equity, and overall financial position over the observed periods.
- Short-term debt and liquidity-related obligations
- Short-term debt appears only intermittently, with a significant increase to 799 million US dollars in 2025, contrasting with lower values in surrounding years. Accounts payable exhibit growth from 1,124 million to 1,978 million US dollars, indicating rising operational liabilities. Contract liabilities, however, peaked in 2022 at 3,142 million and have since declined to 2,566 million, suggesting a reduction in customer prepayments or unfulfilled obligations. Current liabilities increased overall from 4,459 million to approximately 8,000 million US dollars, reflecting increased short-term obligations.
- Employee-related expenses and benefits
- Compensation and employee benefits grew steadily, rising from 800 million to 1,221 million US dollars, reflecting either workforce expansion, wage inflation, or both. The reserves for restructuring and warranty also show increases, with restructuring reserves appearing only in the latest period at 165 million, which may reflect recent organizational changes.
- Taxation and lease obligations
- Income taxes payable display a mixed pattern: one entry increases sharply to 734 million in 2021 before generally declining, while another entry for income taxes payable consistently decreases from 1,206 million to 356 million, potentially indicating shifts in tax liabilities classification. Operating lease liabilities, both current and non-current, have grown modestly, with non-current lease obligations showing a more pronounced increase to 404 million in the last period. Finance lease liabilities appear only in 2024 at 102 million.
- Long-term liabilities
- Long-term debt remains relatively stable around 5,450 million US dollars until a rise to 6,455 million in 2025. Other non-current liabilities increase steadily from 662 to 1,074 million US dollars. Total non-current liabilities have shown a slight decline before increasing again to nearly 7,885 million in 2025.
- Total liabilities
- Total liabilities have increased consistently from 11,775 million to 15,884 million US dollars. This trend reflects growth in both current and non-current obligations, potentially linked to expansion or increased financing activities.
- Equity components
- Common stock remains nearly flat at 8–9 million US dollars, indicating no significant issuance or retirement of stock. Additional paid-in capital has gradually increased from 7,904 million to 10,333 million, signifying capital injections or equity-related transactions. Retained earnings consistently increase from 27,209 million to 55,227 million, indicating sustained profitability over the period. Treasury stock increasingly grows in the negative, reaching -45,043 million US dollars, which implies ongoing stock repurchases reducing outstanding shares. Accumulated other comprehensive loss decreases in absolute value from -299 million to -110 million, suggesting reduced negative impacts in comprehensive income components.
- Overall financial position
- Stockholders’ equity exhibits growth from 10,578 million to 20,415 million US dollars, effectively doubling and indicating strengthened net worth. The total liabilities and stockholders’ equity likewise grow substantially from 22,353 million to 36,299 million US dollars, evidencing expansion of the company's balance sheet size over the periods observed.
In summary, the data illustrates a company experiencing growth in liabilities, particularly current liabilities and long-term debt in later years, alongside accumulation of equity driven by retained earnings and additional paid-in capital. The increase in treasury stock suggests active share repurchases, which may impact shareholder value metrics. The balance sheet expansion and evolving liabilities structure signal both increased operational scale and changing financing strategies.