Name: Williams-Sonoma Inc. (NYSE:WSM) | Common-Size Assets
Creator: Stock Analysis on Net

Common-Size Balance Sheet: Assets

Williams-Sonoma Inc., common-size consolidated balance sheet: assets

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Cash and cash equivalents	23.93%	7.88%	18.38%	25.75%	10.66%	12.05%
Accounts receivable, net	2.33%	2.48%	2.85%	3.08%	2.76%	3.81%
Merchandise inventories, net	23.63%	31.23%	26.94%	21.59%	27.15%	39.99%
Prepaid expenses	1.13%	1.39%	1.50%	2.01%	2.23%	3.60%
Other current assets	0.55%	0.69%	0.57%	0.49%	0.51%	0.78%
Current assets	51.57%	43.66%	50.24%	52.93%	43.31%	60.24%
Property and equipment, net	19.21%	22.85%	19.91%	18.75%	22.92%	33.05%
Operating lease right-of-use assets	23.32%	27.59%	24.49%	23.30%	28.77%	0.00%
Deferred income taxes, net	2.10%	1.75%	1.22%	1.33%	1.18%	1.57%
Goodwill	1.47%	1.66%	1.85%	1.83%	2.11%	3.04%
Other long-term assets, net	2.33%	2.50%	2.30%	1.87%	1.72%	2.11%
Long-term assets	48.43%	56.34%	49.76%	47.07%	56.69%	39.76%
Total assets	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The asset structure of the organization exhibits a significant shift in composition between 2019 and 2024, characterized by a transition from a heavy reliance on owned physical assets and inventory toward a more balanced distribution between liquid assets and lease-based right-of-use assets.

Liquidity and Cash Position: Cash and cash equivalents demonstrate substantial volatility. After a decline from 12.05% in 2019 to 10.66% in 2020, a sharp increase to 25.75% occurred in 2021. Following a dip to 7.88% in 2023, the cash position recovered strongly to 23.93% by 2024, suggesting a strategic accumulation of liquidity in recent periods.
Inventory Management Trends: Merchandise inventories have shown significant fluctuations, starting at a peak of 39.99% in 2019. A downward trend was observed through 2021, reaching a low of 21.59%, followed by a resurgence to 31.23% in 2023. The 2024 figure of 23.63% indicates a return to more lean inventory levels relative to total assets.
Current Asset Volatility: Total current assets have shifted from a majority position of 60.24% in 2019 to a more moderate 51.57% in 2024. This fluctuation is primarily driven by the opposing movements of cash and inventory levels over the six-year period.
Fixed Asset and Lease Transition: A consistent downward trend is observed in net property and equipment, which declined from 33.05% of total assets in 2019 to 19.21% in 2024. This decline coincides with the emergence of operating lease right-of-use assets starting in 2020, which have remained a substantial component of the balance sheet, fluctuating between 23.30% and 28.77%. This suggests a strategic shift toward leased rather than owned physical infrastructure.
Receivables and Other Assets: Accounts receivable, net, have experienced a gradual and steady decline from 3.81% in 2019 to 2.33% in 2024, indicating improved collection efficiency or a change in credit terms. Similarly, prepaid expenses have decreased consistently from 3.60% to 1.13% over the same period. Goodwill and other long-term assets have remained relatively marginal and stable, collectively representing a small fraction of the total asset base.

Overall, the long-term asset proportion increased from 39.76% in 2019 to 48.43% in 2024. This expansion is not due to growth in owned property, but rather the integration of lease obligations into the asset base, effectively rebalancing the organization's asset intensity.

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