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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- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Reportable Segments
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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Applied Materials Inc., consolidated balance sheet: liabilities and stockholders’ equity
US$ in millions
Based on: 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), 10-K (reporting date: 2019-10-27).
The financial data reveals several noteworthy trends in the company's liabilities, equity components, and overall financial structure over the analyzed periods.
- Current Liabilities
- Current liabilities exhibit a rising trend from US$4,447 million in 2019 to US$8,468 million in 2024, nearly doubling over the six-year span. Key components such as accounts payable increased substantially from US$958 million to US$1,570 million, indicating growing short-term obligations to suppliers. Compensation and employee benefits also showed consistent growth from US$559 million to US$1,188 million, reflecting increased workforce-related expenses. Warranty liabilities rose steadily from US$196 million to US$364 million, suggesting a growing commitment to post-sale product responsibilities. Dividends payable increased from US$192 million to US$327 million, aligning with rising retained earnings. Income taxes payable showed volatility with a peak in 2021 at US$734 million followed by a decrease to US$535 million in 2024, indicating fluctuations in tax obligations. Operating lease liabilities, both current and non-current, demonstrated a gradual increase, reflecting evolving lease commitments. The introduction of finance lease liabilities at US$102 million in 2023 marks a change in lease accounting or financing structure.
- Non-Current Liabilities
- Non-current liabilities remained relatively stable, with a slight decline from US$6,363 million in 2019 to US$6,940 million in 2024. Long-term debt net of current portion held steady around US$5,460 million throughout the period, indicating limited changes in long-term borrowings. Income taxes payable non-current portion decreased steadily from US$1,275 million to US$670 million, suggesting improved tax settlement or changes in deferred tax assets/liabilities. Other liabilities fluctuated, increasing from US$375 million to US$810 million. Defined and postretirement benefit plans decreased from US$212 million to a low of US$107 million in 2022 before slightly rebounding to US$142 million in 2024, reflecting management of employee benefit obligations.
- Total Liabilities
- Total liabilities exhibited a consistent upward trend, growing from US$10,810 million in 2019 to US$15,408 million in 2024, driven mainly by rises in current liabilities. This growth suggests increased reliance on short-term financing and operating obligations.
- Equity Components
- Stockholders’ equity grew from US$8,214 million to US$19,001 million over the period, more than doubling. This growth is primarily explained by substantial increases in retained earnings, which rose from US$24,386 million to US$49,651 million, indicating sustained profitability and accumulated earnings. Additional paid-in capital also steadily increased from US$7,595 million to US$9,660 million, reflecting possible equity issuances or capital contributions. Treasury stock increased in magnitude from a negative US$23,596 million to negative US$40,150 million, indicating significant share repurchases or treasury stock accumulation, which partly offsets the increases in equity balances. Accumulated other comprehensive loss fluctuated, peaking at a loss of US$299 million in 2020 but improved to a loss of US$168 million by 2024.
- Overall Financial Position
- Total liabilities and stockholders’ equity rose consistently from US$19,024 million in 2019 to US$34,409 million in 2024, reflecting expansion of the company’s balance sheet size. The increase in current liabilities outpacing the relatively flat long-term debt balance suggests a shift towards more short-term obligations. The significant growth in retained earnings alongside rising equity and liabilities points to robust earnings retention and potential reinvestment into the business. The marked increase in treasury stock signals active capital management through share repurchases. Overall, the data illustrates a pattern of expanding operations financed through increased liabilities and strengthened equity, coupled with ongoing cash return strategies to shareholders.