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Comfort Systems USA FIX Change in contingent consideration liability

Other financials

Income statement

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Revenue$2.9B+56.5%
Gross profit$754.4M+87.0%
Operating income$485.7M+132%
Net income$370.4M+119%
EPS (diluted)$10.51+121%

Balance sheet

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Cash & equivalents$1.1B+413%
Total debt$378.6M+23.6%
Total equity$2.8B+58.4%
Total assets$6.9B+51.8%

Cash flow

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Operating cash flow$388.8M+542%
CapEx$147.5M+564%
Free cash flow$241.4M+319%

Valuation

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Market cap$69.22B+323%
Enterprise value$68.55B+314%
P/E56.6×+29.1×
P/S7.4×+2.9×

Profitability

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Gross margin23.5%+3.2pp
Operating margin13.4%+3.5pp
Net margin10.1%+2.9pp
FCF margin9.6%-1.4pp

Returns & leverage

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Return on equity53.3%+15.5pp
Debt / equity0.1×0.0×
Current ratio1.2×+0.2×

Questions, answered.

What does change in contingent consideration liability mean?
This metric reflects the periodic adjustments to the fair value of liabilities related to contingent consideration from business acquisitions. These adjustments are driven by changes in the probability of meeting performance targets set during the acquisition process. It represents a non-cash, often volatile, impact on the income statement.