How do you interpret investment banking — acquisition related compensation charges?

Higher charges indicate recent M&A activity or ongoing integration costs, which may temporarily depress margins.

Evercore EVR Investment Banking — Acquisition Related Compensation Charges

Discontinued — last reported Q4 '17

Similar metrics at other companies

APTVElectrical Distribution Systems — Compensation expense related to acquisitions

$0—

CAHAcquisition-related cash and share-based compensation costs

$112M+460%

APTVAdvanced Safety and User Experience — Compensation expense related to acquisitions

$4M-20.0%

FISCorporate and other — Business Combination, Integration Related Costs

$140M-36.7%

APTVIntelligent Systems — Compensation expense related to acquisitions

$2M-60.0%

FISBanking solutions — Business Combination, Integration Related Costs

$0—

Other financials

Income statement

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Revenue$1.4B+100%

Net income$301.2M+106%

EPS (diluted)$7.20+107%

Balance sheet

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Cash & equivalents$996.1M+77.0%

Total debt$1.1B+29.6%

Total equity$1.8B+18.3%

Total assets$4.3B+31.9%

Cash flow

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Operating cash flow-$225.9M+58.9%

CapEx$3.1M-84.2%

Free cash flow-$229.0M+59.8%

Valuation

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Market cap$14.38B+51.3%

Enterprise value$14.48B+47.3%

P/E19.3×-2.4×

P/S3.2×+0.1×

Profitability

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Net margin16.4%+2.2pp

FCF margin33.4%+11.8pp

Returns & leverage

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Return on equity45.4%+15.7pp

Debt / equity0.6×+0.1×

Current ratio2.8×-0.5×

Where this comes from

Reported directly by Evercore in its filing.

Tagged under the XBRL concept evr:AcquisitionRelatedCompensationCharges.

The official record: Evercore’s 10-K, filed February 23, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does investment banking — acquisition related compensation charges mean?: Compensation costs related to retaining employees from acquired companies.
How do you interpret investment banking — acquisition related compensation charges?: Higher charges indicate recent M&A activity or ongoing integration costs, which may temporarily depress margins.
How does investment banking — acquisition related compensation charges compare across companies?: Common in firms that grow through inorganic talent acquisition; peers often exclude these from adjusted earnings.