What does banking systems and services — depreciation mean?

The non-cash expense representing the wear and tear of physical equipment used in the Banking Systems and Services segment.

How do you interpret banking systems and services — depreciation?

Higher depreciation relative to revenue often signals a capital-intensive business model or recent significant investments in physical infrastructure.

How does banking systems and services — depreciation compare across companies?

Standard across all capital-intensive industries; comparable to depreciation charges in technology infrastructure and service segments of peer firms.

Henry (Jack) & Associates JKHY Banking Systems And Services — Depreciation

Discontinued — last reported Q4 '16

Similar metrics at other companies

PHMFinancial Services — D&A

$2.58M-0.3%

SEICPrivate Banks — Depreciation

$2.64M+16.8%

SNAFinancial Services — D&A

$200K-20.0%

JEFInvestment Banking Capital Markets And Asset Management — D&A

$19.8M-71.0%

ONBBanking — D&A

$4.14M-11.1%

SEICOperating Segments — Depreciation

$6.83M+2.7%

Other financials

Income statement

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Revenue$636.2M+8.7%

Gross profit$272.3M+11.4%

Operating income$155.0M+11.8%

Net income$122.9M+10.6%

EPS (diluted)$1.71+12.5%

Balance sheet

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Cash & equivalents$20.6M-48.4%

Total debt$136.6M-38.9%

Total equity$2.1B+4.8%

Total assets$3.1B+4.0%

Cash flow

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Operating cash flow$186.0M+72.5%

CapEx$16.5M+41.0%

Free cash flow$169.5M+76.3%

Valuation

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Market cap$8.97B-14.3%

Enterprise value$9.08B-14.6%

P/E17.3×-7.1×

P/S3.6×-0.9×

Profitability

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Gross margin44.1%+2.0pp

Operating margin26%+2.8pp

Net margin20.6%+2.1pp

FCF margin28.9%+8.2pp

Returns & leverage

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Return on equity24.9%+2.4pp

Debt / equity0.1×0.0×

Current ratio1.7×+0.4×

Where this comes from

Reported directly by Henry (Jack) & Associates in its filing.

Tagged under the XBRL concept us-gaap:Depreciation.

The official record: Henry (Jack) & Associates’s 10-K, filed August 29, 2016, on SEC EDGAR. View the filing →

Questions, answered.

What does banking systems and services — depreciation mean?: The non-cash expense representing the wear and tear of physical equipment used in the Banking Systems and Services segment.
How do you interpret banking systems and services — depreciation?: Higher depreciation relative to revenue often signals a capital-intensive business model or recent significant investments in physical infrastructure.
How does banking systems and services — depreciation compare across companies?: Standard across all capital-intensive industries; comparable to depreciation charges in technology infrastructure and service segments of peer firms.