Reynolds American Inc. (NYSE:RAI)

Current Assets

The current assets exhibit significant fluctuations over the five-year period. Starting at 4,812 million US dollars at the end of 2012, there is a notable decline to 3,655 million in 2013 and a further decrease to 3,323 million in 2014. This downward trend reverses in 2015 with a sharp increase to 6,187 million, followed by a reduction to 4,238 million in 2016. Overall, current assets show volatility with a pronounced peak in 2015.

Adjusted Current Assets

The adjusted current assets follow a trend similar to total current assets but consistently remain lower in absolute terms. Beginning at 4,096 million US dollars in 2012, these assets decline steadily through 2013 and 2014, reaching 2,824 million. A marked recovery occurs in 2015 when adjusted current assets surge to 5,309 million. In 2016, there is a decrease to 4,377 million, although this value remains higher than the 2013 and 2014 figures. This pattern suggests adjustments made to current assets reduced the reported values but reflect a comparable cyclical movement.

Trend Insights

The data indicate periods of asset reduction followed by recovery phases. The substantial increase in both current and adjusted current assets in 2015 implies either an accumulation of liquid or near-liquid resources or changes in asset management practices. However, the decline in 2016 suggests that the elevated asset levels were not sustained. The lag between raw current assets and adjusted values highlights the impact of adjustments or reclassifications over time, which should be considered when evaluating liquidity and operational flexibility.

Total Assets

The total assets showed a slight decline from 16,557 million US dollars at the end of 2012 to 15,196 million US dollars by the end of 2014. This indicates a moderate reduction in asset base over the initial three-year period. However, there was a significant increase in total assets in 2015, reaching 53,224 million US dollars, followed by a marginal decrease to 51,095 million US dollars in 2016. The sharp rise observed in 2015 suggests a substantial acquisition, revaluation, or major capital investment during that period, which substantially altered the company's asset base.

Adjusted Total Assets

The pattern of adjusted total assets closely parallels that of total assets. There was a gradual decline from 15,899 million US dollars in 2012 to 14,716 million US dollars in 2014. Similarly, a pronounced increase occurred in 2015, peaking at 52,372 million US dollars, and then slightly decreased to 51,259 million US dollars in 2016. The adjusted figures reinforce the observation that the company experienced a notable asset expansion event in 2015, which may reflect adjustments for revaluation or accounting changes distinct from the unadjusted asset figures.

Overall Analysis

Both total and adjusted asset figures exhibit a consistent trend of modest contraction in the early years, followed by a dramatic expansion in 2015, sustaining elevated levels into 2016 with only a slight contraction. This trend implies a strategic shift or significant event occurring in 2015 that expanded the company’s asset base substantially, maintaining those higher levels in the subsequent year. The alignment between total and adjusted asset values further suggests that these changes are robust and reflect fundamental alterations in the company's financial position rather than fluctuations due to accounting adjustments alone.

The analysis of the annual data for current liabilities and adjusted current liabilities over the five-year period reveals notable fluctuations and trends. Both metrics show a general pattern of decline initially, followed by a significant increase, and then a moderate decrease towards the end of the period.

Current Liabilities

Current liabilities decreased from US$3,769 million at the end of 2012 to US$3,076 million at the end of 2013, indicating a reduction in short-term obligations. This downward trend reversed in 2014 with liabilities increasing to US$3,544 million. The most substantial increase occurred in 2015, reaching US$5,291 million, before slightly declining to US$4,985 million in 2016. This volatility suggests fluctuations in the company's short-term financial commitments, peaking notably in 2015.

Adjusted Current Liabilities

Adjusted current liabilities mirrored the pattern observed in current liabilities, starting at US$3,727 million in 2012 and decreasing to US$3,028 million in 2013. A rise was observed in 2014 to US$3,512 million, followed by a significant jump to US$5,258 million in 2015. A slight decrease to US$4,919 million occurred in 2016, closely paralleling the figures of current liabilities. This consistent pattern indicates a stable adjustment approach applied across the period.

Overall, the company's current liabilities exhibited a substantial increase during 2015, which could be indicative of changes in operational activities, financing strategy, or other financial decisions impacting short-term obligations. The subsequent decrease in 2016 suggests efforts to manage or reduce these liabilities. The close alignment between current liabilities and adjusted current liabilities over the years implies minimal adjustment differences, reinforcing reliability in the reported figures.

Total liabilities

The total liabilities exhibit a fluctuating trend over the five-year period. Initially, there is a decline from 11,300 million US dollars in 2012 to 10,235 million US dollars in 2013. This is followed by a slight increase to 10,674 million US dollars in 2014. A significant rise occurs in 2015, where total liabilities peak sharply at 34,972 million US dollars, before decreasing to 29,384 million US dollars in 2016.

Adjusted total liabilities

The adjusted total liabilities display a somewhat similar pattern with more moderate fluctuations. Starting at 10,855 million US dollars in 2012, there is a general downward trend to 9,590 million US dollars in 2013. This is followed by a small increase to 10,287 million US dollars in 2014. A pronounced increase occurs in 2015, reaching 24,729 million US dollars, which is then followed by a substantial decline to 19,697 million US dollars in 2016.

Overall analysis

Both total liabilities and adjusted total liabilities reveal a considerable spike in 2015, likely indicating a significant financial event or change in the company's capital structure during that year. The total liabilities have a more dramatic increase and subsequent decline compared to adjusted total liabilities, which suggests that adjustments mitigate some of the volatility. The decline in both measures in 2016 may indicate efforts to reduce debt or improve the financial position after the peak in 2015.

The data reflects the evolution of shareholders' equity and adjusted shareholders' equity over a five-year period ending in 2016. Both metrics are denominated in US dollars and measured in millions.

Shareholders’ Equity

Shareholders’ equity showed a downward trend from 2012 through 2014, decreasing from $5,257 million in 2012 to $4,522 million in 2014. This represents a decline of approximately 14%. However, there was a significant turnaround starting in 2015, with equity rising sharply to $18,252 million, and continuing to increase to $21,711 million in 2016. This sharp increase suggests a notable event or capital infusion influencing equity levels between 2014 and 2015.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity followed a somewhat similar pattern, with a slight increase from $5,044 million in 2012 to $5,461 million in 2013, followed by a decline to $4,429 million in 2014. Subsequently, there was a marked rise to $27,643 million in 2015 and $31,562 million in 2016. This adjusted metric consistently remained below the standard shareholders' equity figures prior to 2015 but surpassed them noticeably thereafter, highlighting potentially different accounting treatments or adjustments impacting this measure.

Overall, the data indicate a period of relative stagnation or decline in equity values until 2014, succeeded by a substantial growth phase in 2015 and 2016. The disparity between the standard and adjusted measures before and after 2015 might point to changes in accounting policies, asset revaluations, or other adjustments impacting equity calculations. The sharp growth in equity values in the last two years endorses a significant strengthening of the company's capital base during this period.

The financial data indicates several notable trends in the company's capital structure and equity position over the five-year period from 2012 to 2016.

Total Reported Debt

This metric remained relatively stable around 5,100 million USD from 2012 through 2014, then experienced a sharp increase to approximately 17,447 million USD in 2015, followed by a decrease to 13,165 million USD in 2016. This pattern suggests a significant capital restructuring or financing event occurred in 2015, leading to a surge in debt, which was partially reversed the following year.

Shareholders’ Equity

Shareholders’ equity showed a mild decline from 5,257 million USD in 2012 to 4,522 million USD in 2014. However, it then increased substantially to 18,252 million USD in 2015 and further to 21,711 million USD in 2016. This upward trend indicates strengthened equity, possibly reflecting retained earnings growth, share issuances, or revaluations aligned with the capital changes observed in debt levels.

Total Reported Capital

Total reported capital, the sum of debt and equity, reflects a similar pattern: stable around 10,300 million USD in the initial years, jumping dramatically to nearly 35,700 million USD in 2015, and slightly declining to approximately 34,876 million USD by the end of 2016. The sharp increase corresponds to the spike in both debt and equity components, signaling a major alteration in the company's financing structure during 2015.

Adjusted Total Debt

The adjusted total debt values mirror those of the reported debt closely, indicating consistent measurement approaches. It held steady near 5,100 million USD through 2014, spiked to 17,473 million USD in 2015, and decreased to 13,190 million USD in 2016, reinforcing the conclusion of a significant debt issuance and subsequent partial repayment or restructuring.

Adjusted Shareholders’ Equity

In contrast to the reported equity, the adjusted shareholders’ equity declined from about 5,044 million USD in 2012 to 4,429 million USD in 2014, then surged dramatically to 27,643 million USD in 2015 and further to 31,562 million USD in 2016. This magnitude of increase suggests adjustments capturing additional equity components or re-measurements not reflected in the reported figures, indicating enhanced financial strength.

Adjusted Total Capital

This metric exhibited a stable range from around 10,197 million USD to 10,621 million USD during the early years, dropped slightly to 9,540 million USD in 2014, then escalated sharply to 45,116 million USD in 2015 and slightly declined to 44,752 million USD in 2016. The pronounced rise in adjusted total capital corroborates the substantial changes in both adjusted debt and equity, further emphasizing a significant corporate event or financial restructuring in 2015.

Overall, the data reveal a period of relative stability in the company’s capital structure until 2014, followed by a pronounced transformation in 2015 characterized by a substantial increase in both debt and equity, accompanied by markedly higher total capital values. This likely reflects a major financing transaction, acquisition, or reorganization that materially altered the company’s balance sheet, with some consolidation or reduction occurring in 2016. The adjusted figures suggest more comprehensive accounting considerations, showing greater enhancement in equity and capital than the reported numbers alone.

The financial data exhibits a trend of net sales, including excise taxes, over a five-year period from 2012 to 2016. The figures show fluctuations and growth within this timeframe.

Net sales, includes excise taxes (US$ in millions)

The net sales started at 12,227 million USD at the end of 2012. There was a slight decline in 2013, reducing to 11,966 million USD. The trend stabilized in 2014 with net sales rising marginally to 12,096 million USD. A significant increase occurred in 2015, with net sales reaching 14,884 million USD, representing a substantial growth compared to the previous years. The upward trend continued into 2016, with net sales increasing further to 16,846 million USD.

Adjusted net sales, includes excise taxes (US$ in millions)

The adjusted net sales figures closely mirror the trends observed in the net sales data. From 12,227 million USD in 2012, adjusted net sales dipped slightly to 11,972 million USD in 2013 and then remained nearly stable at 12,080 million USD in 2014. A pronounced growth phase is observed in 2015 and 2016, with adjusted net sales increasing to 14,885 million USD and 16,918 million USD, respectively. The adjusted figures consistently remain slightly higher than the nominal net sales, indicating minor reconciliations or adjustments applied.

Overall, the data reflect a relatively stable sales environment during the early years, followed by strong growth from 2014 to 2016. This suggests an expansion phase or significant improvement in sales performance during the later period under review. The difference between nominal and adjusted net sales remains minimal and consistent, implying reliable adjustments within the accounting framework.

The financial data over the five-year period shows significant fluctuations in the net income and adjusted net income values. Both metrics generally follow an upward trajectory, with some exceptions that indicate volatility in profitability.

Net Income

Net income increased from 1,272 million US dollars in 2012 to 1,718 million US dollars in 2013, reflecting growth of approximately 35%. This was followed by a decline to 1,470 million US dollars in 2014, marking a reduction of about 14% from the previous year. Subsequently, there was a marked increase to 3,253 million US dollars in 2015, more than doubling the prior year’s figure. The upward momentum accelerated in 2016, with net income reaching 6,073 million US dollars, nearly doubling again from 2015. Overall, the net income grew substantially over the period, with the most pronounced gains occurring in the last two years.

Adjusted Net Income

The adjusted net income exhibited even greater variability. Beginning at 1,306 million US dollars in 2012, it rose sharply to 2,305 million US dollars in 2013, representing a substantial increase of approximately 77%. However, in 2014, adjusted net income decreased dramatically to 939 million US dollars, a drop of roughly 59% compared to the previous year. In 2015, there was a strong recovery to 2,571 million US dollars, followed by a significant surge to 6,541 million US dollars in 2016. This pattern suggests that adjusted net income is subject to more pronounced fluctuations, which could be attributed to the nature of adjustments made in the calculation, reflecting non-recurring items or extraordinary factors.

In summary, both net income and adjusted net income demonstrate considerable growth over the five-year period, with amplified increases notably in 2015 and 2016. The data points to resilience and improved profitability in recent years, although the volatility in adjusted net income highlights the importance of understanding the underlying adjustments impacting these figures.