What does home healthand hospice — goodwill impairment mean?

A non-cash charge taken when the value of acquired goodwill in the home health and hospice segment declines.

How do you interpret home healthand hospice — goodwill impairment?

An impairment loss signals that the expected future economic benefits of past acquisitions have decreased.

How does home healthand hospice — goodwill impairment compare across companies?

Standard accounting adjustment for asset valuation in M&A-heavy industries.

The Ensign Group ENSG Home Healthand Hospice — Goodwill Impairment

Discontinued — last reported Q4 '18

Similar metrics at other companies

MTCHANGI Homeservices — Goodwill Impairment

$0—

EHCOther Home Health and Hospice Acquisitions — Goodwill

$8M—

EHCHome Healthand Hospice — Goodwill

$20.5M+25.8%

EHCHome Healthand Hospice — Goodwill Transfers

$0—

LDOSHealth — Goodwill impairment charges

$0—

EQHGroup Retirement — Goodwill Impairment

$0-100%

Other financials

Income statement

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Revenue$1.4B+18.4%

Gross profit$293.4M+19.6%

Operating income$124.9M+23.2%

Net income$99.7M+24.2%

EPS (diluted)$1.67+21.9%

Balance sheet

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Cash & equivalents$539.5M+90.9%

Total debt$2.2B+11.7%

Total equity$2.4B+22.8%

Total assets$5.6B+17.9%

Cash flow

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Operating cash flow$100.2M+38.7%

CapEx$10.0M+27.8%

Free cash flow$90.2M+40.0%

Valuation

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Market cap$8.98B+57.5%

Enterprise value$10.69B+46.4%

P/E24.7×+6.3×

P/S1.7×+0.4×

Profitability

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Gross margin20.6%-0.1pp

Operating margin8.5%0.0pp

Net margin6.9%-0.1pp

FCF margin11%+2.6pp

Returns & leverage

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Return on equity16.9%-0.7pp

Debt / equity0.9×-0.1×

Current ratio1.6×+0.2×

Where this comes from

Reported directly by The Ensign Group in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: The Ensign Group’s 10-K, filed February 6, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does home healthand hospice — goodwill impairment mean?: A non-cash charge taken when the value of acquired goodwill in the home health and hospice segment declines.
How do you interpret home healthand hospice — goodwill impairment?: An impairment loss signals that the expected future economic benefits of past acquisitions have decreased.
How does home healthand hospice — goodwill impairment compare across companies?: Standard accounting adjustment for asset valuation in M&A-heavy industries.