Stock Analysis on Net
Stock Analysis on Net

Reynolds American Inc. (NYSE:RAI)

This company has been moved to the archive! The financial data has not been updated since May 3, 2017.

Common-Size Balance Sheet: Assets

Reynolds American Inc., common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Cash and cash equivalents 4.01 4.82 6.36 9.74 15.11
Short-term investments 0.00 0.28 0.00 0.00 0.00
Accounts receivable 0.13 0.13 0.76 0.69 0.53
Accounts receivable, related party 0.22 0.07 0.27 0.36 0.37
Notes receivable 0.00 0.00 0.00 0.24 0.21
Other receivables 0.02 0.07 0.08 0.10 0.10
Inventories 3.22 3.26 8.43 7.32 5.94
Deferred income taxes, net 0.00 1.94 4.63 3.93 5.48
Other current assets 0.69 1.06 1.34 1.34 1.32
Current assets 8.29% 11.62% 21.87% 23.73% 29.06%
Property, plant and equipment, net 2.64 2.36 7.92 6.97 6.26
Trademarks and other intangible assets, net of accumulated amortization 57.63 55.36 15.93 15.69 14.83
Goodwill 31.30 30.05 52.75 52.01 48.38
Other assets and deferred charges 0.14 0.60 1.53 1.59 1.46
Noncurrent assets 91.71% 88.38% 78.13% 76.27% 70.94%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 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), 10-K (reporting date: 2012-12-31).

The asset composition of the company underwent a significant structural transformation between 2012 and 2016, characterized by a steady migration of value from current assets to noncurrent assets. Current assets decreased from 29.06% of total assets in 2012 to 8.29% by 2016, while noncurrent assets rose from 70.94% to 91.71% over the same period.

Liquidity and Current Asset Trends
A consistent decline in liquidity is evident, as cash and cash equivalents fell from 15.11% of total assets in 2012 to 4.01% in 2016. Inventories showed a period of growth, peaking at 8.43% in 2014 before experiencing a sharp contraction to 3.22% by 2016. Other current assets, including receivables and deferred income taxes, also trended downward, contributing to the overall reduction in the current asset ratio.
Intangible Assets and Goodwill
The most pronounced shift occurred within the noncurrent asset category. Trademarks and other intangible assets remained relatively stable near 15% until 2015, at which point they surged to 55.36%, ending at 57.63% in 2016. Simultaneously, goodwill, which represented more than half of total assets between 2013 and 2014 (peaking at 52.75%), decreased to approximately 31% in 2015 and 2016. This suggests a significant reallocation or reclassification of intangible value during the 2015 fiscal year.
Fixed and Other Noncurrent Assets
Property, plant, and equipment (net) experienced a moderate increase from 6.26% in 2012 to 7.92% in 2014, followed by a sharp decline to 2.36% in 2015, remaining low at 2.64% in 2016. Other assets and deferred charges similarly diminished from 1.46% in 2012 to a negligible 0.14% by 2016.

The overall trend indicates a transition toward an asset base heavily dominated by identifiable intangible assets. The sharp changes observed in 2015 across almost all major asset categories suggest a major corporate event, such as a large-scale acquisition or a fundamental restructuring of the balance sheet, which reduced the relative weight of cash, goodwill, and physical assets in favor of trademarks and other intangibles.

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