Reynolds American Inc. (NYSE:RAI)

The financial data across the five-year period reveals several notable trends in asset structure and composition. Overall, there is a marked shift from current assets toward noncurrent assets, indicating a change in the company's asset allocation strategy over time.

Liquidity Position

The percentage of cash and cash equivalents to total assets shows a consistent decline, dropping from 15.11% in 2012 to 4.01% in 2016. This decrease suggests a reduction in readily available funds, possibly reflecting changes in cash management or investment policies. Short-term investments appear only in 2015, at a minimal 0.28%, indicating a limited use of short-term financial instruments during this period.

Receivables

Accounts receivable as a percentage of total assets remains relatively low and stable, fluctuating slightly between 0.13% and 0.76%. Related party receivables show a decreasing trend from 0.37% in 2012 to 0.22% in 2016, with a notable dip in 2015 at 0.07%. Notes receivable data is incomplete but shows minor values in 2012 and 2013 only. Other receivables steadily decrease from 0.10% to 0.02% over the five years, indicating improved collections or lower receivables from miscellaneous sources.

Inventories

Inventory levels as a percentage of total assets initially increase from 5.94% in 2012 to a peak of 8.43% in 2014, then sharply decline to around 3.22% by 2016. This pattern may suggest changes in inventory management strategies, possibly reducing stock levels to improve turnover or in response to changing demand.

Deferred Income Taxes and Other Current Assets

Deferred income taxes decrease substantially from 5.48% in 2012 to 1.94% in 2015, with no data for 2016. Other current assets show a gradual decline from 1.32% to 0.69%, reflecting a reduction in miscellaneous current asset components. Overall, total current assets significantly decrease from 29.06% to 8.29%, highlighting a strategic move away from short-term assets.

Fixed and Intangible Assets

Net property, plant, and equipment increase slightly as a percentage of total assets from 6.26% to 7.92% through 2014, but then experience a sharp decline to around 2.64% by 2016. In contrast, trademarks and other intangible assets see a dramatic increase from 14.83% to 57.63%, especially between 2014 and 2015 where the value more than triples, indicating substantial investment or acquisitions in intangible assets. Goodwill mirrors this trend but with less volatility, initially increasing from 48.38% to 52.75% before dropping to approximately 31.3% in 2016, suggesting some impairment or revaluation.

Other Assets and Total Asset Composition

Other assets and deferred charges decline from 1.46% to 0.14%, contributing marginally less to total assets over time. Noncurrent assets consistently increase as a share of total assets, from 70.94% to 91.71%, reinforcing the observed shift toward long-term investments and holdings. Total assets remain constant as a base at 100% for each year.

In summary, the data depicts a clear structural evolution with a substantial increase in intangible assets, a reduction in current and liquid assets, and a general concentration of resources in noncurrent assets. This may reflect strategic repositioning to focus on brand-related intangible value and a possible divestment or diminished emphasis on physical assets and working capital. The variations in goodwill and trademarks suggest significant acquisition activity or asset revaluation within the period analyzed.