Williams-Sonoma Inc. (NYSE:WSM)

The analysis of the financial structure reveals a dynamic balance between liabilities and stockholders’ equity over the observed periods. The proportion of total liabilities relative to total liabilities and stockholders’ equity exhibits notable fluctuations, starting at 58.91% in early 2019, peaking at 69.52% in 2020, and subsequently experiencing a general decline to 59.65% by early 2024. This suggests a shifting financing strategy, with varying reliance on debt and other liabilities.

Current Liabilities

The composition of current liabilities as a percentage of total liabilities and stockholders’ equity demonstrates relative stability, ranging between approximately 35.09% and 39.7%. The peak observed in 2020 at 39.7% shows a higher short-term obligation, which gradually decreased to around 35.66% in the latest period. Within this category, accounts payable showed a decreasing trend from 18.72% in 2019 to lower levels below 12% in subsequent years, indicating improved management or renegotiation of payables. Accrued expenses fluctuated but remained in the range of 4.32% to 6.92%, peaking in 2022. Gift card and other deferred revenue steadily increased after 2020, reaching 10.88% in 2024, which may reflect greater deferred income from customer prepayments.

Long-Term Liabilities

Long-term liabilities exhibited variability, with an initial recorded 20.7% in 2019, climbing to nearly 30% in 2020, before decreasing to 23.99% in the latest year. Long-term operating lease liabilities, which were absent in 2019 data, rose sharply to 27% in 2020 and remained significant thereafter, reflecting potential adoption of lease accounting standards or increased leasing activity. Other long-term liabilities consistently decreased from 10.05% in 2019 to 2.07% by 2024, suggesting resolution or reclassification of these obligations. Long-term debt was only explicitly recorded in 2019 (10.65%) and 2020 (7.4% in current debt), with no later data, possibly due to adjustments in debt structure or reporting formats.

Stockholders' Equity

Stockholders’ equity displayed an inverse pattern relative to total liabilities, decreasing from 41.09% in 2019 to a low of 30.48% in 2020, then gradually improving to 40.35% by 2024. Retained earnings contributed positively to this increase, rising consistently from 20.77% in 2019 to 29.5% in 2024, indicative of sustained profitability and earnings retention. Conversely, additional paid-in capital declined steadily from 20.69% in 2019 to 11.16% in 2024, which may reflect share repurchases or absence of recent capital raises. The accumulated other comprehensive loss remained relatively minor but negative, while treasury stock values increased slightly in absolute terms, reflecting some repurchase activity.

Other Observations

Income taxes payable remained a small proportion but generally increased over the periods, from 0.76% to 1.83%, possibly reflecting higher taxable income or changes in tax timing. Other current liabilities remained relatively stable around 1.8% to 2.32%. The data lacks entries for preferred stock, indicating no issuance during this timeframe. Current operating lease liabilities appeared from 2020 onwards, consistent with the notable presence of long-term lease liabilities, underscoring the importance of lease obligations in the company's capital structure.