Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
Bed Bath & Beyond Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)
Based on: 10-Q (reporting date: 2022-08-27), 10-Q (reporting date: 2022-05-28), 10-K (reporting date: 2022-02-26), 10-Q (reporting date: 2021-11-27), 10-Q (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-29), 10-K (reporting date: 2021-02-27), 10-Q (reporting date: 2020-11-28), 10-Q (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-30), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-06-01), 10-K (reporting date: 2019-03-02), 10-Q (reporting date: 2018-12-01), 10-Q (reporting date: 2018-09-01), 10-Q (reporting date: 2018-06-02), 10-K (reporting date: 2018-03-03), 10-Q (reporting date: 2017-11-25), 10-Q (reporting date: 2017-08-26), 10-Q (reporting date: 2017-05-27), 10-K (reporting date: 2017-02-25), 10-Q (reporting date: 2016-11-26), 10-Q (reporting date: 2016-08-27), 10-Q (reporting date: 2016-05-28).
- Current Liabilities
- Current liabilities as a percentage of total liabilities and shareholders’ equity fluctuated modestly between approximately 29% and 40% over the observed period. There was a general upward trend after 2017, peaking around 40.95% in August 2022, indicating an increasing share of short-term obligations relative to the company's capital structure.
- Accounts Payable
- Accounts payable showed variability, ranging mostly between 12% and 22%. A peak was noted in November 2016 at 22.42%, followed by a decline and stabilization around 16% towards mid-2022. This suggests some changes in the timing or volume of payments to suppliers, with a recent relative stability.
- Accrued Expenses and Other Current Liabilities
- This liability category increased from around 7% to above 11% during the dataset, showing a gradual upward trend especially from 2018 onwards, which may reflect growth in accrued obligations or other short-term liabilities.
- Merchandise Credit and Gift Card Liabilities
- This component demonstrated a steady increase from about 4.2% in 2016 to over 7% by August 2022. The growth implies rising liabilities related to customer credit and unredeemed gift cards, possibly indicating increasing sales involving these payment methods.
- Operating Lease Liabilities
- Starting from no recorded data prior to 2019, both current and noncurrent operating lease liabilities showed significant presence afterwards, with noncurrent lease liabilities increasing notably from around 22% to nearly 32% of the total by August 2022. This indicates growing commitments under leased assets, likely due to adoption or expansion of lease accounting standards.
- Long-Term Debt
- Long-term debt maintained a relatively stable percentage around the 20% mark until mid-2020, after which it significantly increased, reaching over 37% by August 2022. Such a sharp rise suggests increased borrowing or refinancing activities, which may be indicative of liquidity needs or funding for operational requirements.
- Noncurrent Liabilities
- Noncurrent liabilities followed an increasing trajectory, rising from approximately 28-31% range before 2019 to over 73% by 2022. The rise reflects the growth in long-term obligations, including lease liabilities and long-term debt, which affect the company’s leverage profile substantially.
- Total Liabilities
- Total liabilities as a percentage of total capital increased markedly from around 60-62% in earlier years to over 112% by August 2022. This crossing of the 100% threshold implies that total liabilities have surpassed shareholders' equity, indicating a leveraged or potentially distressed financial position.
- Shareholders' Equity (Deficit)
- Shareholders’ equity declined across the periods, moving from a healthy positive range near 40% down to negative territory (approximately -12%) by August 2022. This deterioration indicates accumulated losses or reductions in net assets, potentially signaling financial distress or sustained operational challenges.
- Common Stock and Additional Paid-in Capital
- The common stock portion remained stable and minimal, while additional paid-in capital showed a steady increase from approximately 26-29% in earlier years to nearly 48% by 2022. This may represent capital injections or equity financing activities, partially offsetting the declining overall equity position.
- Retained Earnings and Treasury Stock
- Retained earnings illustrated volatility, with periods of both decline and increase, trending overall downward until 2019-2020 before recovering modestly. Conversely, treasury stock at cost followed a declining trend (more negative values), indicating ongoing stock repurchase activities, which may have contributed to equity reduction despite increased paid-in capital.
- Other Liabilities and Accumulated Other Comprehensive Loss
- Other liabilities decreased significantly after 2017, moving from around 7% to below 3%, then stabilizing near 2%. Accumulated other comprehensive loss remained relatively small but demonstrated a slight increasing negative trend, possibly reflecting adverse changes in valuation of certain assets or liabilities not captured in net income.
- Income Taxes Payable
- Income taxes payable consistently represented a small portion of total capital, generally below 2%, with some increase in the later periods, but no substantial impact on overall financial structure.
Overall, the data reveal increasing leverage, with liabilities growing faster than equity, significant rise in long-term debt and lease-related liabilities, and a declining equity base moving into deficit by 2022. This trend may point to liquidity pressures, heightened financial risk, and potential solvency concerns, warranting close monitoring and potential strategic financial restructuring.