How do you interpret electrical electronic materials — goodwill adjustments?

Large adjustments may indicate significant currency volatility or material revisions to initial acquisition valuations, requiring further investigation into reporting accuracy.

How does electrical electronic materials — goodwill adjustments compare across companies?

Standard adjustment line item for multinational corporations with significant foreign operations and recent M&A activity.

Genuine Parts GPC Electrical Electronic Materials — Goodwill Adjustments

Discontinued — last reported Q4 '17

Similar metrics at other companies

LFUSElectronics — Goodwill Translation Purchase Accounting And Error Correction Adjustments

$6.62M—

ENTGElectronic Materials EM — Goodwill Purchase Accounting Adjustments

$1.24M—

HUBBElectrical — Goodwill Adjustments

-$3.1M-321%

RRXElectrical — Goodwill Translation Adjustments

$2.6M+4.0%

RRXElectrical — Goodwill Acquired During Periodand Translationand Purchase Accounting Adjustments

$0—

ENTGElectronic Materials EM — Goodwill Translation Adjustments

$1.18M+233%

Other financials

Income statement

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Revenue$6.3B+6.8%

Gross profit$2.3B+7.6%

Net income$188.5M-3.0%

EPS (diluted)$1.37-2.1%

Balance sheet

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Cash & equivalents$500.0M+18.9%

Total debt$6.4B+4.2%

Total equity$4.5B+0.6%

Total assets$21.0B+5.9%

Cash flow

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Operating cash flow$63.9M+257%

CapEx$97.6M-18.6%

Free cash flow-$33.6M+79.1%

Valuation

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Market cap$14.96B-11.0%

Enterprise value$20.82B-7.4%

P/E17.3×+4.3×

P/S0.6×-0.1×

Profitability

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Gross margin36.9%+0.3pp

Net margin3.4%-1.3pp

FCF margin2.2%+0.7pp

Returns & leverage

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Return on equity17.1%-7.4pp

Debt / equity1.4×0.0×

Current ratio1.1×-0.1×

Where this comes from

Reported directly by Genuine Parts in its filing.

Tagged under the XBRL concept us-gaap:GoodwillTranslationAndPurchaseAccountingAdjustments.

The official record: Genuine Parts’s 10-K, filed February 27, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does electrical electronic materials — goodwill adjustments mean?: Adjustments to the Electrical Electronic Materials goodwill balance caused by currency fluctuations and final acquisition accounting refinements.
How do you interpret electrical electronic materials — goodwill adjustments?: Large adjustments may indicate significant currency volatility or material revisions to initial acquisition valuations, requiring further investigation into reporting accuracy.
How does electrical electronic materials — goodwill adjustments compare across companies?: Standard adjustment line item for multinational corporations with significant foreign operations and recent M&A activity.