How do you interpret industrial & specialty — purchase accounting adjustments?

These are non-operational accounting entries; large adjustments may distort reported earnings and require normalization for accurate performance analysis.

How does industrial & specialty — purchase accounting adjustments compare across companies?

Common in companies with active M&A strategies; peers report these in the 'Basis of Presentation' or 'Acquisition' footnotes.

Element Solutions ESI Industrial & Specialty — Purchase accounting adjustments

Discontinued — last reported Q4 '20

Similar metrics at other companies

DCIIndustrial Solutions Segment — Purchase price adjustments

$0—

CPAYOther — Acquisition Accounting Adjustments

$0—

IEXHealth & Science Technologies — Acquisition adjustments

$0-100%

SNARepair Systems & Information Group — Acquisition adjustments

$0-100%

TRUConsumer Interactive — Purchase accounting measurement period adjustments

$0-100%

SPXCEngineered Solutions — Goodwill, Purchase Accounting Adjustments

$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:GoodwillPurchaseAccountingAdjustments.

The official record: Element Solutions’s 10-K, filed February 25, 2021, on SEC EDGAR. View the filing →

Questions, answered.

What does industrial & specialty — purchase accounting adjustments mean?: Accounting adjustments made to align acquired assets and liabilities to their fair market value.
How do you interpret industrial & specialty — purchase accounting adjustments?: These are non-operational accounting entries; large adjustments may distort reported earnings and require normalization for accurate performance analysis.
How does industrial & specialty — purchase accounting adjustments compare across companies?: Common in companies with active M&A strategies; peers report these in the 'Basis of Presentation' or 'Acquisition' footnotes.