Common-Size Balance Sheet: Assets
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The asset composition of the entity demonstrates several notable shifts between 2021 and 2025. Current assets consistently represent a significant portion of total assets, fluctuating around 53% over the period. Noncurrent assets comprise the remaining portion, exhibiting a generally inverse relationship with current asset percentages. Within both categories, specific items show distinct trends.
- Liquidity and Current Assets
- Cash and cash equivalents decreased from 11.18% of total assets in 2021 to a low of 7.85% in 2024, before increasing to 10.12% in 2025. Receivables, both trade and finance, show a modest increase over the five-year period, with trade receivables rising from 10.24% to 11.08% and finance receivables remaining relatively stable around 10-11%. Inventories experienced an initial increase from 16.96% in 2021 to 19.86% in 2022, followed by a gradual decline to 18.40% in 2025. Prepaid expenses and other current assets were relatively stable, with a slight dip in 2025.
- Long-Term Assets
- Property, plant, and equipment, net, increased steadily from 14.60% to 15.36% of total assets, indicating continued investment in fixed assets. Long-term receivables, finance, decreased slightly from 15.35% in 2021 to 14.48% in 2025, with a minor fluctuation in between. Long-term receivables, trade and other, showed a more pronounced increase, rising from 1.45% to 2.17% over the period. Noncurrent deferred and refundable income taxes increased from 2.22% to 3.77% before decreasing to 2.92% in 2025.
- Intangible Assets and Goodwill
- Both intangible assets and goodwill experienced consistent declines as a percentage of total assets. Intangible assets decreased significantly from 1.26% in 2021 to 0.24% in 2025. Goodwill also decreased, albeit at a slower rate, from 7.64% to 5.40% over the same period. This suggests potential asset write-downs or a shift in the company’s asset strategy.
- Other Assets
- Other assets demonstrated a consistent increase, rising from 4.99% in 2021 to 6.19% in 2025. The nature of these "other assets" would require further investigation to understand the drivers of this growth.
Overall, the entity’s asset base demonstrates a shift away from intangible assets and towards tangible assets like property, plant, and equipment. The increase in other assets and long-term trade receivables also warrants further scrutiny. The fluctuations in cash and cash equivalents suggest potential changes in working capital management or investment strategies.
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