Common-Size Balance Sheet: Assets
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).
The asset composition of the organization exhibited a notable shift between 2017 and 2021, characterized by a transition toward a higher concentration of noncurrent assets, which peaked in 2019 before stabilizing.
- Current Asset Composition and Liquidity
- Current assets experienced a significant contraction from 37.58% of total assets in 2017 to a low of 29.04% in 2019, followed by a partial recovery to 32.72% by 2021. This fluctuation was heavily influenced by accounts receivable, which declined from a peak of 13.75% in 2018 to 9.90% in 2021. Cash and cash equivalents demonstrated volatility, dipping to 5.27% in 2019 but increasing to a period-high of 9.79% in 2020, indicating a strategic shift toward higher immediate liquidity in the latter part of the period.
- Noncurrent Asset Trends and Intangibles
- Noncurrent assets rose from 62.42% in 2017 to 70.96% in 2019, eventually settling at 67.28% in 2021. A primary driver of this increase was the expansion of intangible assets, which grew from 7.73% in 2017 to 14.28% in 2019. Goodwill remained a dominant and relatively stable component of the balance sheet, consistently representing between 27.54% and 30.10% of total assets throughout the five-year span.
- Fixed Assets and Operational Shifts
- Property, plant, and equipment, net, showed a steady downward trend, decreasing from 23.34% of total assets in 2017 to 20.03% in 2021. The emergence of operating lease right-of-use assets in 2019 at 1.92% reflects an accounting adjustment that contributed to the noncurrent asset base. Furthermore, prepaid pension and post-retirement assets saw a progressive increase, rising from 0.62% in 2017 to 2.00% in 2021.
- Working Capital Components
- Inventories fluctuated over the period, starting at 10.62% in 2017, peaking at 11.96% in 2018, and ending at 10.59% in 2021, suggesting a relatively stable inventory-to-asset ratio. Prepaid expenses showed a consistent decline, falling from 2.47% in 2017 to 1.39% in 2021, contributing to the overall reduction in the proportion of current assets relative to the total balance sheet.
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