Debt to Equity
since 2013
Calculation
Twitter Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Convertible and senior notes, and finance lease liabilities1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 0.58 | = | 4,253,019) | ÷ | 7,307,199) |
| Dec 31, 2020 | 0.44 | = | 3,487,305) | ÷ | 7,970,082) |
| Dec 31, 2019 | 0.29 | = | 2,532,481) | ÷ | 8,704,386) |
| Dec 31, 2018 | 0.40 | = | 2,720,690) | ÷ | 6,805,594) |
| Dec 31, 2017 | 0.36 | = | 1,793,744) | ÷ | 5,047,218) |
| Dec 31, 2016 | 0.37 | = | 1,686,652) | ÷ | 4,604,935) |
| Dec 31, 2015 | 0.37 | = | 1,602,956) | ÷ | 4,368,047) |
| Dec 31, 2014 | 0.44 | = | 1,607,290) | ÷ | 3,626,403) |
| Dec 31, 2013 | 0.07 | = | 197,646) | ÷ | 2,950,006) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 US$ in thousands
Between 2013 and 2021, the company's leverage profile underwent a notable transition from a nearly debt-free position to a more leveraged capital structure. Total obligations encompassing convertible and senior notes, and finance lease liabilities, increased from approximately $197.6 million in 2013 to $4.25 billion by the end of 2021.
- Debt Trajectory
- A significant increase in liabilities occurred in 2014, where debt rose from $197.6 million to $1.61 billion. Following a period of relative stability between 2014 and 2017, debt levels accelerated again starting in 2018, eventually peaking at $4.25 billion in 2021. This represents a substantial expansion of long-term borrowing and lease obligations over the analyzed period.
- Stockholders' Equity Performance
- Equity demonstrated consistent growth for much of the period, rising from $2.95 billion in 2013 to a peak of $8.70 billion in 2019. However, a reversal occurred in the final two years, with equity declining to $7.31 billion by December 31, 2021. This contraction in equity coincided with rising debt levels, intensifying the impact on solvency metrics.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio reflects the combined effect of rising liabilities and fluctuating equity. The ratio began at a conservative 0.07 in 2013, spiked to 0.44 in 2014, and then stabilized between 0.36 and 0.40 for several years. A temporary reduction to 0.29 was observed in 2019, driven by the peak in stockholders' equity. By 2021, the ratio reached its highest point of 0.58, indicating an increased reliance on debt relative to shareholder funding.
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Comparison to Competitors
Twitter Inc., debt to equity, long-term trends, comparison to competitors
| Twitter Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2021 | 0.58 | 0.06 | 0.99 | 0.00 | 0.97 | 0.61 |
| Dec 31, 2020 | 0.44 | 0.06 | 1.15 | 0.00 | 1.47 | 0.70 |
| Dec 31, 2019 | 0.29 | 0.02 | 1.24 | 0.00 | 1.95 | 0.53 |
| Dec 31, 2018 | 0.40 | 0.02 | 1.56 | 0.00 | 1.98 | 0.43 |
| Dec 31, 2017 | 0.36 | 0.03 | 0.94 | 0.00 | 1.81 | 0.61 |
| Dec 31, 2016 | 0.37 | 0.03 | 1.13 | 0.00 | 1.26 | 0.47 |
| Dec 31, 2015 | 0.37 | 0.04 | 1.01 | 0.00 | 1.07 | 0.39 |
| Dec 31, 2014 | 0.44 | 0.05 | 0.92 | 0.01 | 0.48 | 0.33 |
| Dec 31, 2013 | 0.07 | 0.06 | 0.94 | 0.03 | 0.37 | 0.31 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Sector (Media & Entertainment)
Twitter Inc., debt to equity, long-term trends, comparison to sector (media & entertainment)
| Twitter Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2021 | 0.58 | 0.31 |
| Dec 31, 2020 | 0.44 | 0.36 |
| Dec 31, 2019 | 0.29 | 0.35 |
| Dec 31, 2018 | 0.40 | 0.38 |
| Dec 31, 2017 | 0.36 | 0.29 |
| Dec 31, 2016 | 0.37 | 0.30 |
| Dec 31, 2015 | 0.37 | 0.29 |
| Dec 31, 2014 | 0.44 | 0.29 |
| Dec 31, 2013 | 0.07 | 0.34 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Industry (Communication Services)
Twitter Inc., debt to equity, long-term trends, comparison to industry (communication services)
| Twitter Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2021 | 0.58 | 0.65 |
| Dec 31, 2020 | 0.44 | 0.67 |
| Dec 31, 2019 | 0.29 | 0.62 |
| Dec 31, 2018 | 0.40 | 0.71 |
| Dec 31, 2017 | 0.36 | 0.75 |
| Dec 31, 2016 | 0.37 | 0.75 |
| Dec 31, 2015 | 0.37 | 0.81 |
| Dec 31, 2014 | 0.44 | 0.81 |
| Dec 31, 2013 | 0.07 | 0.75 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).