Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Bed Bath & Beyond Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity
Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).
- Current Liabilities
- Current liabilities as a percentage of total liabilities and shareholders’ equity show a consistent upward trend, rising from 29.69% in 2017 to 40.44% in 2022. This increase is supported by growth in accrued expenses and other current liabilities, which grew from 7.07% to 10.27%, and merchandise credit and gift card liabilities, which also rose from 4.52% to 6.36%. Accounts payable showed some fluctuation, initially decreasing from 17.22% in 2017 to 12.12% in 2020, before rebounding to 17.00% in 2022. New categories such as current operating lease liabilities and current finance lease liabilities emerged from 2020 onwards, increasing current liabilities further.
- Noncurrent Liabilities
- Noncurrent liabilities increased substantially over the period, from 30.59% in 2017 to 56.17% in 2022. This rise is mainly attributed to the addition and growth of operating lease liabilities, with noncurrent operating lease liabilities starting at 23.35% in 2020 and climbing to 29.39% by 2022. Long-term debt remained relatively stable but showed an increase in 2022, reaching 23.00% after a decline to 18.44% in 2021. Noncurrent finance lease liabilities were minor but showed some volatility.
- Total Liabilities
- Total liabilities increased significantly as a proportion of total liabilities and shareholders’ equity, rising from 60.28% in 2017 to 96.61% in 2022. This reflects the overall increase in both current and noncurrent liabilities, highlighting a heavier reliance on debt and obligations.
- Shareholders’ Equity
- Shareholders’ equity declined sharply over the period, falling from 39.72% in 2017 to just 3.39% in 2022. This decline is largely driven by a steep increase in treasury stock at cost, which moved from -149.22% to -227.76%, exacerbating the reduction in net shareholders’ equity. Retained earnings demonstrated growth overall, rising from 160.73% to 188.40%, but this was insufficient to offset the impact of the increasing treasury stock balance. Additional paid-in capital increased from 28.85% to 43.58%, indicating some capital infusion or revaluation activity. Common stock remained relatively stable at negligible levels throughout.
- Other Observations
- The accumulated other comprehensive loss remained minor and relatively steady, slightly increasing in absolute terms from -0.69% to -0.90%. Income taxes payable showed minor fluctuations but remained under 2% of total liabilities and shareholders’ equity throughout. Certain categories like liabilities related to assets held-for-sale appeared briefly but did not persist, indicating possible disposals or restructuring activities.
- Overall Trends and Insights
- The financial data depict a significant increase in leverage and liabilities over the five-year span. The rise in total liabilities to nearly the entire capitalization structure suggests increasing financial risk. Meanwhile, the drastic reduction in shareholders’ equity percentage points to weakening equity base and possibly aggressive share repurchases or accounting measures reflected in treasury stock. The increase in operating lease liabilities, both current and noncurrent, could be a result of changes in accounting standards or expanded lease commitments. The mixed movements in accrued expenses, gift card liabilities, and operating leases indicate evolving operational funding needs and liabilities management.