Common-Size Balance Sheet: Assets
Quarterly Data
Williams-Sonoma Inc., common-size consolidated balance sheet: assets (quarterly data)
Based on: 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29).
The asset composition of the balance sheet reveals a significant structural shift beginning in May 2019, coinciding with the introduction of operating lease right-of-use assets. This transition redistributed the weight of total assets, moving the company from a heavier reliance on owned property and equipment toward a model incorporating significant leased assets. Since this shift, the balance sheet has exhibited notable volatility in liquidity and inventory levels, while long-term asset proportions have gradually normalized.
- Liquidity and Cash Management
- Cash and cash equivalents have demonstrated extreme volatility. After fluctuating between 3% and 12% in 2018 and 2019, cash holdings surged during the 2020-2021 period, peaking at 25.75% of total assets in January 2021. A sharp contraction occurred in mid-2022, where cash dropped to a low of 2.46% by October 2022. However, a strong recovery trend followed, with cash levels climbing steadily to 24.32% by April 2024, indicating a significant buildup of liquidity.
- Inventory and Receivables
- Merchandise inventories, net, represent one of the most significant components of current assets. This item peaked at 44.05% in October 2018 before trending downward to a low of 21.59% in January 2021. A secondary peak occurred in October 2022 at 36.74%, likely reflecting supply chain adjustments or seasonal stockpiling, before declining again to 23.61% by April 2024. Accounts receivable have remained relatively stable and lean, showing a gradual decline from approximately 4% of total assets in 2018 to 2.23% by April 2024.
- Fixed and Long-Term Assets
- Property and equipment, net, has seen a consistent long-term decline, falling from 34.86% in April 2018 to 19.19% in April 2024. This decline is mirrored by the emergence and subsequent stabilization of operating lease right-of-use assets, which appeared in May 2019 at 31.70% and moderated to 23.02% by April 2024. This suggests a strategic shift in how the entity manages its physical footprint. Other long-term assets and goodwill have remained minimal, generally fluctuating between 1% and 3% of the total asset base.
- Current Asset Trends
- The proportion of current assets to total assets underwent a sharp correction in May 2019, dropping from approximately 60% to 39%. In the years following, current assets have stabilized, generally fluctuating between 42% and 52%. The most recent data indicates an upward trend in the current asset ratio, reaching 51.82% in April 2024, driven primarily by the substantial increase in cash reserves rather than inventory growth.
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