What does fluid power businesses — goodwill impairment mean?

This metric represents the non-cash charge recognized when the carrying value of goodwill associated with the Fluid Power business segment exceeds its implied fair value. It reflects a downward revision in the expected future economic benefits of past acquisitions within this specific industrial segment. Investors monitor this to assess the success of historical M&A activity and the current competitive health of the fluid power product line.

Applied Industrial Technologies AIT Fluid Power Businesses — Goodwill Impairment

Discontinued — last reported Q4 '16

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Other financials

Income statement

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Revenue$1.3B+7.3%

Gross profit$380.8M+7.2%

Operating income$137.9M+6.6%

Net income$99.8M0.0%

EPS (diluted)$2.65+3.1%

Balance sheet

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Cash & equivalents$171.6M-51.4%

Total debt$365.3M-36.2%

Total equity$1.9B+1.8%

Total assets$3.0B-4.1%

Cash flow

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Operating cash flow$100.1M-18.2%

CapEx$4.7M-37.3%

Free cash flow$95.4M-17.0%

Valuation

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Market cap$12.49B+14.4%

Enterprise value$12.68B+13.8%

P/E30.9×+2.9×

P/S2.6×+0.2×

Profitability

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Gross margin30.4%+0.1pp

Operating margin10.9%-0.3pp

Net margin8.3%-0.3pp

FCF margin9.1%-0.7pp

Returns & leverage

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Return on equity21.9%-0.3pp

Debt / equity0.2×-0.1×

Current ratio2.9×-0.6×

Where this comes from

Reported directly by Applied Industrial Technologies in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Applied Industrial Technologies’s 10-K, filed August 18, 2017, on SEC EDGAR. View the filing →

Questions, answered.

What does fluid power businesses — goodwill impairment mean?: This metric represents the non-cash charge recognized when the carrying value of goodwill associated with the Fluid Power business segment exceeds its implied fair value. It reflects a downward revision in the expected future economic benefits of past acquisitions within this specific industrial segment. Investors monitor this to assess the success of historical M&A activity and the current competitive health of the fluid power product line.