Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Net Profit Margin since 2013
- Debt to Equity since 2013
- Total Asset Turnover since 2013
- Analysis of Debt
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Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
- Accounts Payable and Accrued Expenses
- There is a marked decline in accounts payable as a percentage of total liabilities and stockholders’ equity, decreasing steadily from 11.27% in 2018 to 3.13% in 2023. Similarly, accrued compensation fluctuates but shows a downward trend from 2.74% to 1.44%. Other accrued expenses see a general decline with some variability, ending lower at 0.59%. Overall, accounts payable and accrued expenses combined reduced significantly from 18.4% in 2018 to 7.06% in 2023, indicating improved management of short-term liabilities or a relative shift in capital structure.
- Current Liabilities
- Current liabilities as a whole experienced a substantial reduction from 29.97% in 2018 to 16.69% in 2023. This reflects a meaningful decrease in short-term obligations relative to total liabilities and equity, suggesting a possible restructuring of liabilities towards longer maturities or lower current liabilities burden.
- Convertible Senior Notes
- Convertible senior notes show varied maturity profiles with shifts in proportions. Notes due in 2019 and 2020 were material in earlier years but disappear after 2020, reflecting repayment or refinancing. Notes due 2023 and 2024 initially increase in proportion but decline sharply by 2023, suggesting active debt management or conversion events. The overall trend shows a decline in reliance on this form of debt in the latest periods.
- Term Loans
- Term loans were non-existent in early years but constitute a significant portion of liabilities in 2022 and 2023, rising to over 36%. This indicates increased reliance on term loans likely replacing maturing debt instruments or funding strategic initiatives.
- Leases and Financing Obligations
- Operating and finance lease liabilities exhibit higher proportions in the middle years (2020-2021), followed by reductions by 2023. Non-current lease obligations notably decrease from approximately 17% in 2020 to under 10% in 2023, evidencing either lease terminations, expirations, or changes in accounting treatment. Financing obligations related to build-to-suit leases diminished after 2019, suggesting asset purchases or lease conversions.
- Deferred and Other Liabilities
- Deferred revenue and customer deposits are moderately volatile but generally trend downward from 8.62% in 2018 to 6.14% in 2023. Unrecognized tax benefits steadily decrease, while deferred payroll taxes appear transient. Other current and non-current liabilities decrease over time, indicating a reduction in miscellaneous obligations.
- Stockholders’ Equity
- Stockholders’ equity as a percentage of total liabilities and equity improves notably from a slight deficit in 2018 (-0.42%) and 2019 (-1.27%) to a positive level of 14.78% in 2023. Retained earnings display a significant turnaround: a large deficit in 2019 (-20.86%) improves to a positive 10.17% by 2023, reflecting recovery in profitability or capital injections. Additional paid-in capital, however, declines consistently from nearly 50% in 2018 to below 5% in 2023, possibly reflecting share repurchases or amortization effects on equity accounts. Treasury stock was significant in 2018 but is not reported in later years.
- Total Liabilities and Equity
- Total liabilities as a portion of total financing remain relatively stable but exhibit a dip in 2021 and 2022 (under 80%), rebounding to 85.22% in 2023. The increase in equity proportion coincides with the dip in total liabilities, indicating a rebalancing of the capital structure toward greater equity representation during the period 2021-2023.