Total Asset Turnover
since 2005
Calculation
Reynolds American Inc., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net sales, includes excise taxes1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2016 | 0.33 | = | 16,846) | ÷ | 51,095) |
| Dec 31, 2015 | 0.27 | = | 14,625) | ÷ | 53,224) |
| Dec 31, 2014 | 0.80 | = | 12,096) | ÷ | 15,196) |
| Dec 31, 2013 | 0.78 | = | 11,966) | ÷ | 15,402) |
| Dec 31, 2012 | 0.74 | = | 12,227) | ÷ | 16,557) |
| Dec 31, 2011 | 0.78 | = | 12,648) | ÷ | 16,254) |
| Dec 31, 2010 | 0.75 | = | 12,891) | ÷ | 17,078) |
| Dec 31, 2009 | 0.69 | = | 12,346) | ÷ | 18,009) |
| Dec 31, 2008 | 0.59 | = | 10,735) | ÷ | 18,154) |
| Dec 31, 2007 | 0.59 | = | 11,049) | ÷ | 18,629) |
| Dec 31, 2006 | 0.58 | = | 10,634) | ÷ | 18,178) |
| Dec 31, 2005 | 0.72 | = | 10,431) | ÷ | 14,519) |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial data presents several notable trends over the period analyzed. Net sales, inclusive of excise taxes, demonstrate a general upward trajectory from 2005 through 2016. Starting at approximately 10.4 billion US dollars in 2005, sales steadily increased with minor fluctuations, reaching a substantial peak of about 16.8 billion US dollars by the end of 2016. This indicates growth in revenue generation over the years, with particularly strong increases seen in the later years of the timeline.
Total assets exhibit a somewhat different pattern. The value of total assets increased from roughly 14.5 billion US dollars in 2005 to a peak around 18.6 billion US dollars in 2007, followed by a gradual decline over the subsequent years until 2014. Notably, there is a sharp increase in reported total assets in 2015 and 2016, jumping to over 53 billion and then slightly declining to approximately 51 billion US dollars, which suggests a significant change in asset base potentially due to sizable acquisitions, revaluations, or other large-scale financial events during this later period.
Total asset turnover, which measures the efficiency of asset use to generate sales, fluctuates over the years. Starting at 0.72 in 2005, it declined to about 0.58-0.59 in the years 2006 to 2008, then improved steadily from 2009 through 2014, reaching 0.8. This improvement indicates enhancing efficiency in asset utilization during that time. However, the ratio experiences a steep drop in 2015 and 2016 to 0.27 and 0.33 respectively, reflective of the surge in total assets not being matched proportionally by sales growth during these years.
Overall, the increasing net sales trend points to successful revenue expansion efforts over the analyzed period. The total assets demonstrate stability with moderate fluctuations until a significant jump in the last two years, suggesting notable changes within the balance sheet structure. The total asset turnover ratio’s decline in the final years indicates that the newly acquired or increased assets have not yet been converted into proportional sales, possibly reflecting integration challenges or lagging operational efficiencies following asset base expansion.
Comparison to Competitors
Reynolds American Inc., total asset turnover, long-term trends, comparison to competitors
| Reynolds American Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2016 | 0.33 | 0.48 | 0.42 | 0.85 | 0.72 |
| Dec 31, 2015 | 0.27 | 0.49 | 0.47 | 0.91 | 0.79 |
| Dec 31, 2014 | 0.80 | 0.50 | 0.51 | 0.95 | 0.85 |
| Dec 31, 2013 | 0.78 | 0.52 | 0.49 | 0.86 | 0.82 |
| Dec 31, 2012 | 0.74 | 0.56 | 0.46 | 0.88 | 0.83 |
| Dec 31, 2011 | 0.78 | 0.58 | 0.58 | 0.91 | 0.88 |
| Dec 31, 2010 | 0.75 | 0.48 | 0.52 | 0.85 | 0.78 |
| Dec 31, 2009 | 0.69 | 0.64 | 0.61 | 1.08 | 0.72 |
| Dec 31, 2008 | 0.59 | 0.79 | 0.67 | 1.20 | 0.78 |
| Dec 31, 2007 | 0.59 | 0.67 | 0.55 | 1.14 | — |
| Dec 31, 2006 | 0.58 | 0.80 | 0.62 | 1.17 | — |
| Dec 31, 2005 | 0.72 | 0.79 | 0.59 | 1.03 | — |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Food, Beverage & Tobacco)
Reynolds American Inc., total asset turnover, long-term trends, comparison to sector (food, beverage & tobacco)
| Reynolds American Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 31, 2016 | 0.33 | 0.61 |
| Dec 31, 2015 | 0.27 | 0.64 |
| Dec 31, 2014 | 0.80 | 0.67 |
| Dec 31, 2013 | 0.78 | 0.65 |
| Dec 31, 2012 | 0.74 | 0.66 |
| Dec 31, 2011 | 0.78 | 0.70 |
| Dec 31, 2010 | 0.75 | 0.62 |
| Dec 31, 2009 | 0.69 | 0.74 |
| Dec 31, 2008 | 0.59 | 0.83 |
| Dec 31, 2007 | 0.59 | 0.72 |
| Dec 31, 2006 | 0.58 | 0.81 |
| Dec 31, 2005 | 0.72 | 0.76 |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Staples)
Reynolds American Inc., total asset turnover, long-term trends, comparison to industry (consumer staples)
| Reynolds American Inc. | Consumer Staples | |
|---|---|---|
| Dec 31, 2016 | 0.33 | 1.35 |
| Dec 31, 2015 | 0.27 | 1.37 |
| Dec 31, 2014 | 0.80 | 1.32 |
| Dec 31, 2013 | 0.78 | 1.30 |
| Dec 31, 2012 | 0.74 | 1.30 |
| Dec 31, 2011 | 0.78 | 1.27 |
| Dec 31, 2010 | 0.75 | 1.24 |
| Dec 31, 2009 | 0.69 | 1.36 |
| Dec 31, 2008 | 0.59 | 1.35 |
| Dec 31, 2007 | 0.59 | 1.32 |
| Dec 31, 2006 | 0.58 | 1.33 |
| Dec 31, 2005 | 0.72 | 1.52 |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).