Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
Williams-Sonoma Inc., consolidated balance sheet: assets
US$ in thousands
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 financial data exhibits several notable trends over the six-year period analyzed. Total assets show a consistent upward trajectory, increasing from approximately $2.8 billion in early 2019 to over $5.2 billion by early 2024, indicating overall growth in the asset base.
- Cash and Cash Equivalents
- This item displays significant volatility, with a sharp rise from $338.9 million in 2019 to a peak of $1.2 billion in 2021, followed by a decrease to $367.3 million in 2023, and then a substantial rebound to $1.26 billion in 2024. Such fluctuations could point to varying liquidity management strategies or changes in cash flow scenarios.
- Accounts Receivable, Net
- Accounts receivable exhibit moderate growth, rising from about $107.1 million in 2019 to a high of $143.7 million in 2021, then declining somewhat and stabilizing around $123 million in 2024. This pattern suggests some variability in credit sales or collection efficiency but overall a stable receivable level relative to sales.
- Merchandise Inventories, Net
- Inventories decreased from approximately $1.12 billion in 2019 to near $1.01 billion in 2021, after which they increased sharply to a peak of $1.46 billion in 2023 before settling at around $1.25 billion in 2024. This pattern may reflect inventory management adjustments, supply chain factors, or shifts in demand forecasting.
- Prepaid Expenses
- Prepaid expenses trend downward consistently, dropping from about $101.4 million in 2019 to $59.5 million in 2024, indicating either improved expense timing or reductions in prepaid outlays.
- Other Current Assets
- These assets rise slightly overall from $21.9 million to about $29 million, showing steady but moderate growth.
- Current Assets
- Current assets increase significantly from $1.69 billion in 2019 to $2.7 billion in 2024, reflective of the growth noted in cash, receivables, inventories, and other current components.
- Property and Equipment, Net
- Net property and equipment display relative stability with a minor dip in 2021, followed by growth peaking at approximately $1.07 billion in 2023, and a slight decrease to $1.01 billion in 2024. This suggests ongoing investment offset by depreciation or asset disposals.
- Operating Lease Right-of-Use Assets
- Introduced in 2020 with a value around $1.17 billion, this asset class decreases modestly over time but remains substantial above $1.2 billion in 2024, indicating the continued significance of operating leases on the balance sheet.
- Deferred Income Taxes, Net
- Deferred tax assets rise steadily from $44.1 million in 2019 to $110.7 million in 2024, potentially reflecting accumulated temporary differences or changes in tax position.
- Goodwill
- Goodwill remains largely constant around $85 million until 2022, followed by a noticeable decline to about $77.3 million in the last two years, possibly indicating impairments or disposals.
- Other Long-Term Assets, Net
- These assets show continuous growth from $59.4 million in 2019 to $123 million by 2024, suggesting ongoing accumulation of non-current resources.
- Long-Term Assets
- Long-term assets nearly double from approximately $1.12 billion in 2019 to $2.55 billion in 2024, driven by increases in operating lease assets, property and equipment, deferred taxes, and other long-term items.
In summary, the data reflects a growing asset base with expansion in both current and long-term assets. Volatility in cash balances points to dynamic liquidity management, while increases in inventory and operating lease assets suggest strategic positioning in inventory and leased properties. The slight decline in goodwill may imply asset write-downs or restructuring. Overall, the asset trends indicate robust growth with evolving asset composition over the six-year period.