How do you interpret industrial — goodwill purchase accounting adjustments?

An increase indicates recent M&A activity within the industrial segment, while a consistent zero suggests organic growth focus.

How does industrial — goodwill purchase accounting adjustments compare across companies?

Peers in the industrial manufacturing sector often report similar acquisition-related goodwill adjustments when consolidating new business units.

Graco GGG Industrial — Goodwill Purchase Accounting Adjustments

Discontinued — last reported Q3 '17

Similar metrics at other companies

GPCIndustrial — Goodwill Acquired

$4.48M-50.6%

RPMIndustrial — Goodwill Acquired

$1.46M-70.5%

WWDIndustrial — Goodwill Acquired

$257.45M—

IRIndustrials — Goodwill Purchase Accounting Adjustments

-$300K—

MOG.BIndustrial — Goodwill, Acquired During Period

$0—

GPCIndustrial — Goodwill Adjustments

$144.25K+134%

Other financials

Income statement

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Revenue$540.1M+2.2%

Gross profit$280.6M+1.0%

Operating income$137.8M-4.3%

Net income$118.5M-4.5%

EPS (diluted)$0.70-2.8%

Balance sheet

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Cash & equivalents$712.2M+32.8%

Total debt$51.8M+2.9%

Total equity$2.7B+10.7%

Total assets$3.3B+10.9%

Cash flow

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Operating cash flow$120.2M-4.1%

CapEx$12.1M+14.6%

Free cash flow$108.1M-5.8%

Valuation

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Market cap$12.62B0.0%

Enterprise value$11.96B-1.3%

P/E24.4×-1.4×

P/S5.6×-0.3×

Profitability

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Gross margin52.3%-0.5pp

Operating margin27.5%+0.5pp

Net margin23%+0.3pp

FCF margin28.1%+2.6pp

Returns & leverage

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Return on equity19.8%-0.5pp

Debt / equity0×0.0×

Current ratio3.6×-0.1×

Where this comes from

Reported directly by Graco in its filing.

Tagged under the XBRL concept us-gaap:GoodwillPurchaseAccountingAdjustments.

The official record: Graco’s 10-Q, filed October 25, 2017, on SEC EDGAR. View the filing →

Questions, answered.

What does industrial — goodwill purchase accounting adjustments mean?: The value of goodwill added to the industrial segment's balance sheet due to new business acquisitions.
How do you interpret industrial — goodwill purchase accounting adjustments?: An increase indicates recent M&A activity within the industrial segment, while a consistent zero suggests organic growth focus.
How does industrial — goodwill purchase accounting adjustments compare across companies?: Peers in the industrial manufacturing sector often report similar acquisition-related goodwill adjustments when consolidating new business units.