Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Williams-Sonoma Inc., adjustments to financial statements

US$ in thousands

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Adjustment to Total Assets
Total assets (as reported)	5,273,548)	4,663,016)	4,625,620)	4,661,424)	4,054,042)	2,812,844)
Less: Goodwill	77,306)	77,307)	85,354)	85,446)	85,343)	85,382)
Total assets (adjusted)	5,196,242)	4,585,709)	4,540,266)	4,575,978)	3,968,699)	2,727,462)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	2,127,861)	1,701,051)	1,664,207)	1,651,185)	1,235,860)	1,155,714)
Less: Goodwill	77,306)	77,307)	85,354)	85,446)	85,343)	85,382)
Stockholders’ equity (adjusted)	2,050,555)	1,623,744)	1,578,853)	1,565,739)	1,150,517)	1,070,332)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

Williams-Sonoma Inc., Financial Data: Reported vs. Adjusted

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Williams-Sonoma Inc., adjusted financial ratios

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Total Asset Turnover
Reported total asset turnover	1.47	1.86	1.78	1.46	1.45	2.02
Adjusted total asset turnover	1.49	1.89	1.82	1.48	1.49	2.08
Financial Leverage
Reported financial leverage	2.48	2.74	2.78	2.82	3.28	2.43
Adjusted financial leverage	2.53	2.82	2.88	2.92	3.45	2.55
Return on Equity (ROE)
Reported ROE	44.63%	66.31%	67.68%	41.23%	28.81%	28.87%
Adjusted ROE	46.32%	69.46%	71.34%	43.48%	30.95%	31.18%
Return on Assets (ROA)
Reported ROA	18.01%	24.19%	24.35%	14.60%	8.78%	11.86%
Adjusted ROA	18.28%	24.60%	24.81%	14.88%	8.97%	12.23%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Williams-Sonoma Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Williams-Sonoma Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Williams-Sonoma Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Williams-Sonoma Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Williams-Sonoma Inc., Financial Ratios: Reported vs. Adjusted

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	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net revenues	7,750,652)	8,674,417)	8,245,936)	6,783,189)	5,898,008)	5,671,593)
Total assets	5,273,548)	4,663,016)	4,625,620)	4,661,424)	4,054,042)	2,812,844)
Activity Ratio
Total asset turnover¹	1.47	1.86	1.78	1.46	1.45	2.02
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net revenues	7,750,652)	8,674,417)	8,245,936)	6,783,189)	5,898,008)	5,671,593)
Adjusted total assets	5,196,242)	4,585,709)	4,540,266)	4,575,978)	3,968,699)	2,727,462)
Activity Ratio
Adjusted total asset turnover²	1.49	1.89	1.82	1.48	1.49	2.08

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ Total asset turnover = Net revenues ÷ Total assets
= 7,750,652 ÷ 5,273,548 = 1.47

² Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 7,750,652 ÷ 5,196,242 = 1.49

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Williams-Sonoma Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	5,273,548)	4,663,016)	4,625,620)	4,661,424)	4,054,042)	2,812,844)
Stockholders’ equity	2,127,861)	1,701,051)	1,664,207)	1,651,185)	1,235,860)	1,155,714)
Solvency Ratio
Financial leverage¹	2.48	2.74	2.78	2.82	3.28	2.43
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	5,196,242)	4,585,709)	4,540,266)	4,575,978)	3,968,699)	2,727,462)
Adjusted stockholders’ equity	2,050,555)	1,623,744)	1,578,853)	1,565,739)	1,150,517)	1,070,332)
Solvency Ratio
Adjusted financial leverage²	2.53	2.82	2.88	2.92	3.45	2.55

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 5,273,548 ÷ 2,127,861 = 2.48

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 5,196,242 ÷ 2,050,555 = 2.53

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Williams-Sonoma Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net earnings	949,762)	1,127,904)	1,126,337)	680,714)	356,062)	333,684)
Stockholders’ equity	2,127,861)	1,701,051)	1,664,207)	1,651,185)	1,235,860)	1,155,714)
Profitability Ratio
ROE¹	44.63%	66.31%	67.68%	41.23%	28.81%	28.87%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net earnings	949,762)	1,127,904)	1,126,337)	680,714)	356,062)	333,684)
Adjusted stockholders’ equity	2,050,555)	1,623,744)	1,578,853)	1,565,739)	1,150,517)	1,070,332)
Profitability Ratio
Adjusted ROE²	46.32%	69.46%	71.34%	43.48%	30.95%	31.18%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ ROE = 100 × Net earnings ÷ Stockholders’ equity
= 100 × 949,762 ÷ 2,127,861 = 44.63%

² Adjusted ROE = 100 × Net earnings ÷ Adjusted stockholders’ equity
= 100 × 949,762 ÷ 2,050,555 = 46.32%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Williams-Sonoma Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net earnings	949,762)	1,127,904)	1,126,337)	680,714)	356,062)	333,684)
Total assets	5,273,548)	4,663,016)	4,625,620)	4,661,424)	4,054,042)	2,812,844)
Profitability Ratio
ROA¹	18.01%	24.19%	24.35%	14.60%	8.78%	11.86%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net earnings	949,762)	1,127,904)	1,126,337)	680,714)	356,062)	333,684)
Adjusted total assets	5,196,242)	4,585,709)	4,540,266)	4,575,978)	3,968,699)	2,727,462)
Profitability Ratio
Adjusted ROA²	18.28%	24.60%	24.81%	14.88%	8.97%	12.23%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 949,762 ÷ 5,273,548 = 18.01%

² Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 949,762 ÷ 5,196,242 = 18.28%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Williams-Sonoma Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Williams-Sonoma Inc. (NYSE:WSM)

Analysis of Goodwill and Intangible Assets

Adjustments to Financial Statements: Removal of Goodwill

Williams-Sonoma Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Williams-Sonoma Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)