Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Accounts payable	203,171)	194,281)	161,148)	145,186)	170,969)
Accrued compensation	325,113)	171,681)	190,465)	155,830)	98,553)
Federal Trade Commission accrual	150,000)	150,000)	—)	—)	—)
Deferred revenue	78,541)	58,976)	68,987)	38,949)	27,824)
Accrued tax liabilities	47,830)	40,384)	45,967)	39,729)	36,097)
Accrued publisher, content and ad network costs	45,025)	42,541)	45,265)	33,014)	32,462)
Accrued professional services	41,321)	27,404)	38,596)	—)	—)
Accrued other	230,520)	171,979)	111,613)	138,229)	132,397)
Accrued and other current liabilities	918,350)	662,965)	500,893)	405,751)	327,333)
Convertible notes, short-term	—)	917,866)	—)	897,328)	—)
Operating lease liabilities, short-term	222,346)	177,147)	146,959)	—)	—)
Finance lease liabilities, short-term	—)	567)	23,476)	68,046)	84,976)
Current liabilities	1,343,867)	1,952,826)	832,476)	1,516,311)	583,278)
Convertible notes, long-term	3,559,023)	1,875,878)	1,816,833)	1,730,922)	1,627,460)
Senior notes, long-term	693,996)	692,994)	691,967)	—)	—)
Operating lease liabilities, long-term	1,071,209)	819,748)	609,245)	—)	—)
Finance lease liabilities, long-term	—)	—)	205)	24,394)	81,308)
Deferred and other long-term tax liabilities, net	40,691)	31,463)	24,170)	17,849)	13,240)
Other long-term liabilities	43,531)	36,099)	24,107)	67,502)	59,973)
Long-term liabilities	5,408,450)	3,456,182)	3,166,527)	1,840,667)	1,781,981)
Total liabilities	6,752,317)	5,409,008)	3,999,003)	3,356,978)	2,365,259)
Preferred stock, $0.000005 par value; none issued and outstanding	—)	—)	—)	—)	—)
Common stock, $0.000005 par value	4)	4)	4)	4)	4)
Additional paid-in capital	8,432,112)	9,167,138)	8,763,330)	8,324,974)	7,750,522)
Treasury stock, at cost	(5,295)	(5,297)	—)	—)	—)
Accumulated other comprehensive loss	(117,320)	(66,094)	(70,534)	(65,311)	(31,579)
Retained earnings (accumulated deficit)	(1,002,302)	(1,125,669)	11,586)	(1,454,073)	(2,671,729)
Stockholders’ equity	7,307,199)	7,970,082)	8,704,386)	6,805,594)	5,047,218)
Total liabilities and stockholders’ equity	14,059,516)	13,379,090)	12,703,389)	10,162,572)	7,412,477)

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 financial data exhibits notable trends in liabilities and equity over the five-year period.

Current Liabilities: Current liabilities showed significant volatility. After a substantial increase from approximately 583 million USD at the end of 2017 to over 1.5 billion USD in 2018, the figure dropped notably in 2019 to about 832 million USD. A sharp rise followed in 2020, reaching nearly 2 billion USD, before declining again to around 1.34 billion USD in 2021. This fluctuation is influenced by variations in several components such as accrued and other current liabilities, accounts payable, and short-term convertible notes.
Accrued and Other Current Liabilities: This category consistently increased across the period, from roughly 327 million USD in 2017 to about 918 million USD in 2021, reflecting a growing accrual of expenses and obligations. Noteworthy increases occurred in accrued compensation, which more than tripled from approximately 98 million USD in 2017 to over 325 million USD in 2021.
Long-Term Liabilities: Long-term liabilities rose markedly, especially from 2019 onwards. The figure nearly doubled from approximately 1.78 billion USD in 2017 to over 5.4 billion USD by the end of 2021. Significant contributors include long-term convertible notes, which more than doubled between 2020 (about 1.88 billion USD) and 2021 (approximately 3.56 billion USD), and operating lease liabilities, which similarly expanded during this time frame.
Total Liabilities: The overall liabilities exhibited a sustained upward trajectory, progressing from around 2.37 billion USD in 2017 to roughly 6.75 billion USD at the close of 2021. This growth correlates with increases in both current and long-term liabilities, indicating rising financial obligations.
Stockholders’ Equity: Stockholders’ equity demonstrated growth from 2017 through 2019, increasing from approximately 5.05 billion USD to over 8.7 billion USD. However, a decline is evident in 2020 and 2021, with equity decreasing to about 7.3 billion USD by the end of 2021. The retained earnings line shows significant variability, moving from a large accumulated deficit in 2017 to a slightly positive position in 2019 and back to negative values in subsequent years, which may reflect profitability challenges or other comprehensive losses.
Other Equity Elements: Additional paid-in capital consistently increased until 2020, peaking at over 9.1 billion USD, before declining in 2021. Treasury stock values were recorded as modest negative figures in 2020 and 2021, denoting repurchased stock. Accumulated other comprehensive loss worsened over the period, increasing in absolute terms from approximately -31.6 million USD in 2017 to about -117.3 million USD in 2021, indicating adverse effects from items excluded from net income, such as foreign currency translation or pension adjustments.
Revenue-Linked Liabilities: Deferred revenue saw an upward movement with fluctuations, increasing significantly from about 27.8 million USD at the end of 2017 to over 78.5 million USD in 2021, suggesting growth in prepayments or liabilities related to future service delivery.

Overall, the data reflects increasing financial leverage and obligations over the period, with expanded liabilities—particularly long-term—and volatile equity positions. The substantial growth in accrued compensation and other accruals suggests rising operating expenses or workforce-related costs. The marked increase in convertible notes, both short-term and long-term, points to reliance on debt financing. Negative trends in retained earnings and comprehensive loss may require further examination regarding profitability and broader financial health.

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Twitter Inc. (NYSE:TWTR)

Balance Sheet: Liabilities and Stockholders’ Equity