Stock Analysis on Net
AI Tokens
Stock Analysis on Net

Reynolds American Inc. (NYSE:RAI)

This company has been moved to the archive! The financial data has not been updated since May 3, 2017.

Total Asset Turnover
since 2005

Microsoft Excel

Calculation

Reynolds American Inc., total asset turnover, long-term trends, calculation

Microsoft Excel
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 total asset turnover exhibits three distinct phases between 2005 and 2016: a period of initial decline, a phase of efficiency improvement, and a sharp structural contraction following a significant expansion of the asset base.

Operational Efficiency Trends (2005–2014)
Between 2005 and 2008, the total asset turnover ratio declined from 0.72 to 0.59, coinciding with a rise in total assets from US$ 14,519 million to US$ 18,154 million. Following 2008, a consistent upward trend in efficiency was observed, with the ratio climbing steadily from 0.69 in 2009 to a peak of 0.80 in 2014. This improvement was primarily driven by a reduction in the total asset base to US$ 15,196 million while net sales remained relatively stable or grew modestly.
Structural Shift (2015–2016)
A significant volatility event occurred in 2015, where total assets increased abruptly from US$ 15,196 million to US$ 53,224 million. Although net sales rose to US$ 14,625 million in the same period, the disproportionate growth in assets caused the total asset turnover ratio to drop sharply to 0.27. By 2016, the ratio showed a modest recovery to 0.33, supported by a further increase in net sales to US$ 16,846 million and a slight reduction in total assets to US$ 51,095 million.
Revenue and Asset Correlation
From 2005 to 2014, the relationship between net sales and assets remained relatively proportional, allowing for a gradual optimization of asset utilization. However, the 2015–2016 period marks a fundamental shift in the balance sheet structure; the asset base expanded by more than 200%, which drastically lowered the efficiency of revenue generation per unit of asset.

AI Ask an analyst for more

My previous chats

Add tokens

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?

Comparison to Competitors

Reynolds American Inc., total asset turnover, long-term trends, comparison to competitors

Microsoft Excel
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)

Microsoft Excel
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)

Microsoft Excel
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).