What does agricultural solutions — goodwill impairment mean?

The amount of value written off from goodwill because the agricultural business is worth less than previously recorded.

How do you interpret agricultural solutions — goodwill impairment?

An increase signals a decline in the expected future profitability or market value of the agricultural segment.

How does agricultural solutions — goodwill impairment compare across companies?

Commonly reported by peers as 'Goodwill Impairment' or 'Impairment of Intangible Assets' in segment disclosures.

Element Solutions ESI Agricultural Solutions — Goodwill Impairment

Discontinued — last reported Q4 '17

Similar metrics at other companies

VMI

VMIAgriculture — Goodwill Impairment

$120M—

DDAgriculture — Goodwill Impairment

$0—

VMI

VMIAgriculture — Goodwill And Intangible Asset Impairment

$1.98M—

VMI

VMIAgriculture — Goodwill Impaired Accumulated Impairment Loss

$120M0.0%

ESEUtility Solutions — Goodwill Impairment

$4.5M—

MODCommercial And Industrial Solutions — Goodwill Impairment

$0—

Other financials

Income statement

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Revenue$840.0M+41.5%

Gross profit$322.7M+28.8%

Operating income$111.4M+43.9%

Net income$55.9M-43.0%

EPS (diluted)$0.23-42.5%

Balance sheet

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Cash & equivalents$177.3M-64.5%

Total debt$2.3B+38.8%

Total equity$2.7B+8.5%

Total assets$5.7B+19.7%

Cash flow

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Operating cash flow-$66.6M-356%

CapEx$25.1M+128%

Free cash flow-$91.7M-711%

Valuation

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Market cap$11.2B+51.7%

Enterprise value$13.28B+57.3%

P/E75.3×+49.5×

P/S4×+1.0×

Profitability

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Gross margin40.8%-1.2pp

Operating margin13.4%-0.4pp

Net margin5.3%-6.2pp

FCF margin4.3%-6.6pp

Returns & leverage

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Return on equity5.7%-6.2pp

Debt / equity0.8×+0.2×

Current ratio2.7×-1.3×

Where this comes from

Reported directly by Element Solutions in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Element Solutions’s 10-K, filed February 28, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does agricultural solutions — goodwill impairment mean?: The amount of value written off from goodwill because the agricultural business is worth less than previously recorded.
How do you interpret agricultural solutions — goodwill impairment?: An increase signals a decline in the expected future profitability or market value of the agricultural segment.
How does agricultural solutions — goodwill impairment compare across companies?: Commonly reported by peers as 'Goodwill Impairment' or 'Impairment of Intangible Assets' in segment disclosures.