What does powertrain systems — asset impairment charges mean?

Non-cash write-downs of assets within the Powertrain Systems segment due to reduced value.

How do you interpret powertrain systems — asset impairment charges?

High charges signal poor capital allocation or a deterioration in the competitive outlook for the segment's product lines.

How does powertrain systems — asset impairment charges compare across companies?

Standard impairment testing results found in the 'Other' or 'Segment' notes of industrial and automotive manufacturing peers.

Aptiv APTV Powertrain Systems — Asset Impairment Charges

Discontinued — last reported Q4 '16

Similar metrics at other companies

BWAPowerDrive Systems — Fixed asset impairment

$167M—

RRXIndustrial Powertrain Solutions — Asset Impairments

$0-100%

BWAPowerDrive Systems — Impairment of intangible assets

$1.25M—

MODPerformance Technologies — Asset Impairment Charges

-$14M-134%

MODAutomotive — Asset Impairment Charges

-$14M-134%

MOG.BIndustrial Systems — Asset Impairment Charges

$653.25K—

Other financials

Income statement

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Revenue$5.1B+5.4%

Gross profit$920.0M0.0%

Operating income$378.0M-15.6%

Net income$189.0M+1,818%

EPS (diluted)$0.88+1,860%

Balance sheet

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Cash & equivalents$3.2B+188%

Total debt$9.9B+17.1%

Total equity$9.2B+3.0%

Total assets$25.2B+9.1%

Cash flow

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Operating cash flow-$143.0M-152%

CapEx$219.0M+11.2%

Free cash flow-$362.0M-576%

Valuation

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Market cap$13.48B+8.4%

Enterprise value$20.19B+2.5%

P/E36.9×+28.9×

P/S0.7×0.0×

Profitability

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Gross margin18.9%-0.2pp

Operating margin5.4%-4.1pp

Net margin1.8%-6.2pp

FCF margin5.3%-3.4pp

Returns & leverage

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Return on equity4%-11.5pp

Debt / equity1.1×+0.1×

Current ratio2.1×+0.5×

Where this comes from

Reported directly by Aptiv in its filing.

Tagged under the XBRL concept us-gaap:AssetImpairmentCharges.

The official record: Aptiv’s 10-K, filed February 6, 2017, on SEC EDGAR. View the filing →

Questions, answered.

What does powertrain systems — asset impairment charges mean?: Non-cash write-downs of assets within the Powertrain Systems segment due to reduced value.
How do you interpret powertrain systems — asset impairment charges?: High charges signal poor capital allocation or a deterioration in the competitive outlook for the segment's product lines.
How does powertrain systems — asset impairment charges compare across companies?: Standard impairment testing results found in the 'Other' or 'Segment' notes of industrial and automotive manufacturing peers.