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Twitter Inc. (NYSE:TWTR)

This company has been moved to the archive! The financial data has not been updated since July 26, 2022.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Twitter Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Accounts payable 1.45 1.45 1.27 1.43 2.31
Accrued compensation 2.31 1.28 1.50 1.53 1.33
Federal Trade Commission accrual 1.07 1.12 0.00 0.00 0.00
Deferred revenue 0.56 0.44 0.54 0.38 0.38
Accrued tax liabilities 0.34 0.30 0.36 0.39 0.49
Accrued publisher, content and ad network costs 0.32 0.32 0.36 0.32 0.44
Accrued professional services 0.29 0.20 0.30 0.00 0.00
Accrued other 1.64 1.29 0.88 1.36 1.79
Accrued and other current liabilities 6.53% 4.96% 3.94% 3.99% 4.42%
Convertible notes, short-term 0.00 6.86 0.00 8.83 0.00
Operating lease liabilities, short-term 1.58 1.32 1.16 0.00 0.00
Finance lease liabilities, short-term 0.00 0.00 0.18 0.67 1.15
Current liabilities 9.56% 14.60% 6.55% 14.92% 7.87%
Convertible notes, long-term 25.31 14.02 14.30 17.03 21.96
Senior notes, long-term 4.94 5.18 5.45 0.00 0.00
Operating lease liabilities, long-term 7.62 6.13 4.80 0.00 0.00
Finance lease liabilities, long-term 0.00 0.00 0.00 0.24 1.10
Deferred and other long-term tax liabilities, net 0.29 0.24 0.19 0.18 0.18
Other long-term liabilities 0.31 0.27 0.19 0.66 0.81
Long-term liabilities 38.47% 25.83% 24.93% 18.11% 24.04%
Total liabilities 48.03% 40.43% 31.48% 33.03% 31.91%
Preferred stock, $0.000005 par value; none issued and outstanding 0.00 0.00 0.00 0.00 0.00
Common stock, $0.000005 par value 0.00 0.00 0.00 0.00 0.00
Additional paid-in capital 59.97 68.52 68.98 81.92 104.56
Treasury stock, at cost -0.04 -0.04 0.00 0.00 0.00
Accumulated other comprehensive loss -0.83 -0.49 -0.56 -0.64 -0.43
Retained earnings (accumulated deficit) -7.13 -8.41 0.09 -14.31 -36.04
Stockholders’ equity 51.97% 59.57% 68.52% 66.97% 68.09%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

The capital structure of the organization underwent a significant shift between 2017 and 2021, characterized by a steady increase in total liabilities and a corresponding decrease in stockholders' equity. Total liabilities rose from 31.91% of the total balance sheet in 2017 to 48.03% by 2021, indicating an increased reliance on debt and obligations to fund operations and assets. Conversely, stockholders' equity declined from 68.09% to 51.97% over the same period.

Liability Composition and Trends
A marked increase is observed in long-term liabilities, which grew from 24.04% in 2017 to 38.47% in 2021. This growth was primarily driven by a substantial rise in long-term convertible notes, which reached 25.31% of the total balance sheet in 2021. Additionally, long-term operating lease liabilities showed a consistent upward trend, increasing from 0% in 2017 to 7.62% in 2021.
Current liabilities exhibited greater volatility, peaking at 14.92% in 2018 and 14.60% in 2020 before declining to 9.56% in 2021. This fluctuation was largely influenced by the presence of short-term convertible notes, which appeared in 2018 (8.83%) and 2020 (6.86%) but were absent in other years.
Equity Analysis
The decline in stockholders' equity is largely attributable to the reduction in additional paid-in capital, which dropped sharply from 104.56% in 2017 to 59.97% in 2021. This suggests a significant shift in the relative proportion of contributed capital compared to the total balance sheet size.
Retained earnings showed a volatile trajectory. The company began 2017 with a substantial accumulated deficit of -36.04%, which improved to a slight surplus of 0.09% by 2019. However, the balance returned to a deficit position in 2020 (-8.41%) and 2021 (-7.13%), indicating inconsistent profitability or significant payouts over the five-year period.
Operational Obligations
Accrued and other current liabilities trended upward from 4.42% in 2017 to 6.53% in 2021. Within this category, accrued compensation saw a notable increase in 2021, rising to 2.31% from a low of 1.28% in 2020. Furthermore, the introduction of a Federal Trade Commission accrual in 2020 (1.12%) added a new layer of regulatory liability to the balance sheet.

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