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Graco GGG Process — Goodwill Translation Adjustments

Discontinued — last reported Q2 '16

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-$1.78M+43.7%

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×
Current ratio3.6×-0.1×

Where this comes from

Reported directly by Graco in its filing.

Tagged under the XBRL concept us-gaap:GoodwillTranslationAdjustments.

The official record: Graco’s 10-Q, filed July 20, 2016, on SEC EDGAR. View the filing →

Questions, answered.

What does process — goodwill translation adjustments mean?
The change in the reported value of goodwill for a business segment caused solely by changes in foreign currency exchange rates.
How do you interpret process — goodwill translation adjustments?
An increase indicates a strengthening of the foreign currency relative to the reporting currency, while a decrease suggests a weakening. Frequent or large adjustments may indicate significant exposure to currency risk in international markets where the segment operates.
How does process — goodwill translation adjustments compare across companies?
Similar to foreign currency translation adjustments reported by multinational peers, this metric is standard for companies with significant international operations and cross-border acquisitions.