How do you interpret engineered product division — inventory write down?

Frequent or large write-downs suggest poor inventory management, product obsolescence, or declining market demand.

How does engineered product division — inventory write down compare across companies?

Comparable to inventory impairment or obsolescence charges in industrial manufacturing peers.

Flowserve FLS Engineered Product Division — Inventory Write Down

Discontinued — last reported Q3 '16

Similar metrics at other companies

RPMSpecialty Products Group — Inventory Write Down

$1.9M—

RPMConstruction Products Group — Inventory Write Down

$25K-93.8%

ARWGlobal Components — Inventory Write Down

$50.4M—

RPMConsumer — Inventory Write Down

$500K-97.7%

RPMConstruction Products — Inventory Write Down

$300K+50.0%

SUNOperating Segments — Inventory Write Down

-$55M-2,850%

Other financials

Income statement

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Revenue$1.1B-6.7%

Gross profit$379.8M+2.8%

Operating income$119.4M-9.4%

Net income$81.7M+10.5%

EPS (diluted)$0.64+14.3%

Balance sheet

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Cash & equivalents$792.4M+46.5%

Total debt$1.9B+12.7%

Total equity$2.2B+6.4%

Total assets$5.7B+4.6%

Cash flow

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Operating cash flow-$43.1M+13.7%

CapEx$16.9M+44.0%

Free cash flow-$60.0M+2.7%

Valuation

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Market cap$10.44B+45.4%

Enterprise value$11.59B+37.9%

P/E27.3×+1.8×

P/S2.2×+0.7×

Profitability

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Gross margin34.2%+2.5pp

Operating margin8.3%-2.1pp

Net margin8.2%+2.1pp

FCF margin9.9%+4.3pp

Returns & leverage

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Return on equity17.8%+3.8pp

Debt / equity0.9×0.0×

Current ratio2.2×+0.1×

Where this comes from

Reported directly by Flowserve in its filing.

Tagged under the XBRL concept us-gaap:InventoryWriteDown.

The official record: Flowserve’s 10-Q, filed October 27, 2016, on SEC EDGAR. View the filing →

Questions, answered.

What does engineered product division — inventory write down mean?: The cost of reducing the recorded value of inventory that is no longer worth its original cost.
How do you interpret engineered product division — inventory write down?: Frequent or large write-downs suggest poor inventory management, product obsolescence, or declining market demand.
How does engineered product division — inventory write down compare across companies?: Comparable to inventory impairment or obsolescence charges in industrial manufacturing peers.