Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
Broadcom Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)
Based on: 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-Q (reporting date: 2025-02-02), 10-K (reporting date: 2024-11-03), 10-Q (reporting date: 2024-08-04), 10-Q (reporting date: 2024-05-05), 10-Q (reporting date: 2024-02-04), 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: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-Q (reporting date: 2020-02-02), 10-K (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-Q (reporting date: 2019-02-03).
The analysis of the financial data reveals several notable trends in the composition of liabilities and equity over the reported periods.
- Accounts payable
- This liability fluctuates moderately between approximately 0.6% and 1.7% of total liabilities and equity, with no sustained trend upward or downward. The proportion shows some variability but remains a relatively small component of total financing sources.
- Employee compensation and benefits
- There is marked volatility in this obligation, oscillating generally between about 0.5% and 1.6% of total liabilities and equity. Peaks observed in several quarters suggest episodic increases, possibly reflecting periodic bonuses or accrual adjustments.
- Short-term debt
- Short-term borrowings demonstrate a downward trend starting from over 5% in early 2019 to lower single-digit percentages most recently, with occasional spikes, notably around early 2025. This suggests a reduction in reliance on short-term financing, with some intermittent increases potentially linked to liquidity management needs.
- Other current liabilities
- This category maintains a fairly stable share, fluctuating between approximately 3.9% and 8.6%. A general upward drift is observed towards later periods, possibly indicating increased operational accruals or deferred items classified as current liabilities.
- Current liabilities (aggregate)
- The total current liabilities as a percentage of total financing sources decreased from nearly 12% in early 2019 to lows near 8% in 2020, followed by a gradual increase, peaking above 12% in early 2025 before settling near 10% towards the end of the series. This indicates some variability but overall a moderate share in the capital structure.
- Long-term debt
- Long-term debt is the dominant liability component, representing roughly 35% to 55% of total liabilities and equity across periods. A general increase occurred from 2019 through 2020, peaking above 55%, followed by a significant reduction starting in 2023 and continuing through 2025, descending closer to 37-38%. This trend suggests active debt reduction or refinancing initiatives aimed at lowering long-term leverage.
- Other long-term liabilities
- These liabilities remain relatively stable, mostly ranging between 5.5% and 9.7%, with a slight declining tendency after 2020. Notable increases around 2023 may reflect recognition of additional long-term provisions or adjustments.
- Long-term liabilities (aggregate)
- The overall proportion of long-term liabilities peaks near 62.5% around 2020, followed by a consistent decline to approximately 45% by 2025, indicating a strategic shift toward deleveraging and possibly strengthening the equity base.
- Total liabilities
- Total liabilities (% of total financing) show a high but slightly declining pattern, moving from nearly 70% in early years to about 56% in the most recent quarters. This suggests a gradual rebalancing towards a higher equity position over time.
- Preferred stock and common stock
- Preferred stock is negligible or absent throughout the period, with common stock par value consistently at zero percent, indicating no significant issuance impacting the capital structure.
- Additional paid-in capital
- This equity component displays a U-shaped trend. Initial declines from above 32% in early 2019 to below 29% around 2022 are followed by a marked increase, reaching over 41% by 2025. This suggests capital injections, equity issuances, or accumulated paid-in capital incrementing equity financing.
- Retained earnings
- Though data is intermittent, retained earnings show a general increase in recent periods, recovering from occasional deficits to positive contributions near 2.4% by mid-2025. This indicates profitability improving cumulative earnings within equity.
- Accumulated other comprehensive income (loss)
- This account remains slightly negative or near zero in initial years, transitioning to small positive balances from 2023 onward, reflecting modest unrealized gains or other comprehensive income effects.
- Stockholders’ equity (aggregate)
- The total equity percentage declined from over 36% in late 2019 to lows near 29% by 2022, then recovered steadily, reaching above 44% by mid-2025. This shift corresponds with the reduction in liabilities and increased paid-in capital, portraying strengthened equity position and reduced leverage over time.
Overall, the data indicate a strategic pattern of leverage management characterized by reduction in long-term debt, moderate fluctuations in current liabilities, and substantial increases in equity financing components. This suggests deliberate efforts to improve capital structure robustness and possibly lower financial risk. The growing equity share combined with declining debt ratios reflects enhanced financial stability and potential for improved credit profiles.