How do you interpret engineered systems segment — purchase price adjustments?

Frequent or large adjustments may indicate volatility in valuation processes or complex integration accounting.

How does engineered systems segment — purchase price adjustments compare across companies?

Common in companies with frequent M&A activity; usually small relative to total purchase price.

Dover DOV Engineered Systems Segment — Purchase price adjustments

Discontinued — last reported Q4 '18

Similar metrics at other companies

SPXCEngineered Solutions — Goodwill, Purchase Accounting Adjustments

$0—

DCIMobile Solutions Segment — Purchase price adjustments

$0—

BWAFuel Systems — Measurement period adjustments

$0—

CORZEquipment Sales and Hosting Segment — Subsequent measurement period adjustment

$0—

RRXCommercial Systems — Acquisition and Valuation Adjustments

$0—

AITEngineered Solutions Segment — Goodwill, Purchase Accounting Adjustments

$1.25M—

Other financials

Income statement

See full

Revenue$2.1B+10.1%

Gross profit$798.1M+7.1%

Operating income$305.9M+3.2%

Net income$238.4M+3.3%

EPS (diluted)$1.75+4.8%

Balance sheet

See full

Cash & equivalents$1.6B-9.1%

Total debt$3.3B+10.7%

Total equity$7.5B+4.9%

Total assets$13.5B+6.8%

Cash flow

See full

Operating cash flow$191.0M+21.3%

CapEx$59.8M+24.1%

Free cash flow$131.2M+20.0%

Valuation

See full

Market cap$30.11B+16.7%

Enterprise value$31.75B+17.8%

P/E27.3×+16.1×

P/S3.6×+0.3×

Profitability

See full

Gross margin39.5%+0.6pp

Operating margin16.7%+0.5pp

Net margin13.3%-16.4pp

FCF margin13.8%+2.1pp

Returns & leverage

See full

Return on equity15.1%-22.3pp

Debt / equity0.4×0.0×

Current ratio1.9×-0.3×

Where this comes from

Reported directly by Dover in its filing.

Tagged under the XBRL concept us-gaap:GoodwillPurchaseAccountingAdjustments.

The official record: Dover’s 10-K, filed February 15, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does engineered systems segment — purchase price adjustments mean?: Refinements to the recorded cost of acquisitions within the Engineered Systems segment.
How do you interpret engineered systems segment — purchase price adjustments?: Frequent or large adjustments may indicate volatility in valuation processes or complex integration accounting.
How does engineered systems segment — purchase price adjustments compare across companies?: Common in companies with frequent M&A activity; usually small relative to total purchase price.