Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
Apache Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
- Liabilities Trends
- The overall proportion of total liabilities relative to total liabilities and shareholders’ equity fluctuates, showing an upward trend peaking at 77.56% in Dec 31, 2015, which indicates an increasing reliance on liabilities to finance the company. This notable rise is especially evident from mid-2015 onwards.
- Current Liabilities
- Current liabilities as a percentage of total liabilities and shareholders’ equity remain relatively stable around 7% to 9% during most periods but spike to 11.29% in Mar 31, 2015 and again rise towards the end of the observation period, indicating some volatility within short-term obligations.
- Long-term Debt
- Long-term debt shows a significant increase over the period, notably rising from around 18% in early 2011 to 46.58% by Dec 31, 2015. This underscores a growing dependence on long-term borrowing.
- Income Taxes and Asset Retirement Obligations
- Income taxes consistently account for around 10% to 15% of the total, decreasing materially to approximately 5.69% by Dec 31, 2015. Conversely, the asset retirement obligation gradually increases from about 5.5% to a peak of 13.6% at year-end 2015, indicating expanding future asset retirement liabilities.
- Other Noncurrent Liabilities
- Deferred credits and other noncurrent liabilities are stable, remaining near 20% across most quarters, with minor variations, indicating stable other long-term obligations.
- Shareholders’ Equity Trends
- Total equity decreases overall, from a high near 58.77% in Sep 30, 2011 to about 22.44% in Mar 31, 2016, reflecting a decline in the equity base relative to total financing. This is influenced heavily by a declining trend in retained earnings, which plummets from approximately 36% to negative levels by early 2016, suggesting accumulated losses or dividend distributions exceeding earnings.
- Paid-in Capital and Treasury Stock
- Paid-in capital increases substantially, especially from 2013 onward, rising from around 16% to over 66% by year-end 2015, which may be related to new equity injections. This increase is partly offset by an increasing negative treasury stock percentage, indicating significant repurchases or reductions in outstanding shares, growing in magnitude from near zero to over -15%.
- Common and Preferred Stock
- The proportion of common stock gradually rises from about 0.5% to 1.36% in late 2015, while preferred stock gradually declines, reflecting changes in capital structure preferences or redemptions.
- Accumulated Other Comprehensive Income (Loss)
- This component remains consistently negative and slightly increasing in absolute terms, indicating ongoing other comprehensive losses impacting equity.
- Noncontrolling Interest
- Noncontrolling interest emerges around 2013 and grows to approximately 8.82% by Dec 31, 2015, highlighting increased minority shareholder stakes in consolidated subsidiaries.
- Component Insights
- The increase in liabilities, particularly long-term debt and some sharp increases in asset retirement obligations, combined with the decrease in equity, specifically deteriorating retained earnings, suggests increasing financial leverage and pressure on profitability or capital retention. The rising paid-in capital tempered by increasing treasury stock could indicate alternating capital raising and share repurchase activities. The data points to a shift towards a more debt-intensive capital structure over the observed period.