What does loss on sale of subsidiary mean?

A non-cash accounting loss recorded when a business unit is sold for less than its book value.

How do you interpret loss on sale of subsidiary?

An increase in this loss suggests the company is divesting underperforming assets or restructuring, which may be a one-time event.

How does loss on sale of subsidiary compare across companies?

Common in diversified industrial firms undergoing portfolio optimization; peers often report this as a non-recurring item.

IDEX IEX Loss on Sale of Subsidiary

Loss on Sale of Subsidiary at other companies

UnitedHealth GroupUNH

-$72M-380%

UnitedHealth GroupUNH

-$72M-380%

RambusRMBS

$0—

International PaperIP

-$3M—

The Kraft Heinz CompanyKHC

$0—

Lennox InternationalLII

$225K+160%

Other financials

Income statement

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Revenue$886.9M+8.9%

Gross profit$398.1M+7.9%

Operating income$172.4M+21.4%

Net income$120.0M+25.7%

EPS (diluted)$1.61+27.8%

Balance sheet

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Cash & equivalents$591.8M-3.3%

Total debt$1.9B-3.4%

Total equity$4.0B+3.7%

Total assets$6.9B+1.8%

Cash flow

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Operating cash flow$103.7M-1.9%

CapEx$17.7M+23.8%

Free cash flow$86.0M-5.9%

Valuation

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Market cap$16.65B+2.9%

Enterprise value$17.96B+2.3%

P/E32.8×-1.0×

P/S4.7×-0.2×

Profitability

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Gross margin44.4%0.0pp

Operating margin20.7%+0.6pp

Net margin14.4%-0.2pp

Returns & leverage

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Return on equity12.8%0.0pp

Debt / equity0.5×0.0×

Current ratio3.4×+0.6×

Questions, answered.

What does loss on sale of subsidiary mean?: A non-cash accounting loss recorded when a business unit is sold for less than its book value.
How do you interpret loss on sale of subsidiary?: An increase in this loss suggests the company is divesting underperforming assets or restructuring, which may be a one-time event.
How does loss on sale of subsidiary compare across companies?: Common in diversified industrial firms undergoing portfolio optimization; peers often report this as a non-recurring item.