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 significant shifts over the five-year period. A notable trend is the decrease in current assets as a percentage of total assets, contrasted by a corresponding increase in noncurrent assets. Within current assets, the allocation among components also exhibits considerable variation.
- Liquidity and Current Assets
- Current assets decreased as a percentage of total assets from 32.89% in 2021 to 20.61% in 2025. This decline is primarily driven by reductions in cash and cash equivalents, and short-term investments. Cash and cash equivalents experienced a substantial decrease from 1.07% to 0.55%, while short-term investments fell from 16.05% to 5.98%. Trade accounts receivable remained relatively stable, fluctuating between 4.93% and 6.33% of total assets. Inventories showed a slight increase over the period, moving from 4.99% to 5.12%. Current tax assets also decreased, though less dramatically, from 2.35% to 1.91%. Other current assets experienced an initial increase before declining to 1.35% in 2025.
- Long-Term Investments
- Long-term investments decreased significantly from 11.86% of total assets in 2021 to 0.78% in 2025, indicating a strategic shift away from these holdings. This reduction is particularly pronounced between 2022 and 2024.
- Fixed Assets
- Property, plant, and equipment, net, exhibited a consistent, albeit modest, increase from 8.20% to 9.28% of total assets. This suggests ongoing investment in fixed assets, though not at a rate that dramatically alters the overall asset structure.
- Intangible Assets and Goodwill
- Identifiable intangible assets, net, and goodwill represent a substantial and growing portion of total assets. Identifiable intangible assets increased from 13.86% in 2021 to 25.81% in 2025. Goodwill experienced a more significant increase, rising from 27.12% to 34.24% over the same period. These increases suggest a reliance on acquisitions or internally developed intangibles to drive asset growth.
- Noncurrent Tax Assets and Other Noncurrent Assets
- Noncurrent deferred tax assets and other noncurrent tax assets increased from 1.84% to 4.66% of total assets, indicating a growing utilization of tax benefits or changes in tax-related accounting. Other noncurrent assets also showed an increase, from 4.23% to 4.63%, though the change was less pronounced.
- Overall Asset Composition
- The proportion of noncurrent assets increased from 67.11% in 2021 to 79.39% in 2025. This shift, coupled with the decline in current assets, suggests a long-term strategic focus on less liquid, but potentially higher-yielding, assets. The increasing dominance of goodwill and intangible assets warrants further investigation into the underlying drivers of this growth and potential impairment risks.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?