How do you interpret power transmission solutions — goodwill impairment?

An impairment charge is a negative signal indicating that the segment's business prospects have declined relative to the acquisition price.

How does power transmission solutions — goodwill impairment compare across companies?

Comparable to goodwill impairment tests and charges reported by any company with significant acquisition history.

Regal Rexnord RRX Power Transmission Solutions — Goodwill Impairment

Discontinued — last reported Q4 '20

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Other financials

Income statement

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Revenue$1.5B+4.3%

Gross profit$549.9M+4.2%

Operating income$152.7M-4.4%

Net income$64.3M+12.2%

EPS (diluted)$0.96+11.6%

Balance sheet

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Cash & equivalents$401.0M+31.3%

Total debt$5.0B-9.9%

Total equity$6.8B+6.0%

Total assets$13.8B-1.8%

Cash flow

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Operating cash flow$14.9M-85.4%

CapEx$17.4M+3.6%

Free cash flow-$2.5M-103%

Valuation

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Market cap$15.1B+65.1%

Enterprise value$19.67B+33.4%

P/E52.7×+13.5×

P/S2.5×+1.0×

Profitability

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Gross margin37.4%+0.7pp

Operating margin11.2%+0.1pp

Net margin4.8%+0.8pp

FCF margin13.4%+4.6pp

Returns & leverage

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Return on equity4.3%+0.6pp

Debt / equity0.7×-0.1×

Current ratio2.2×-0.1×

Where this comes from

Reported directly by Regal Rexnord in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Regal Rexnord’s 10-K, filed March 2, 2021, on SEC EDGAR. View the filing →

Questions, answered.

What does power transmission solutions — goodwill impairment mean?: A non-cash charge reflecting a reduction in the value of goodwill within the Power Transmission Solutions segment.
How do you interpret power transmission solutions — goodwill impairment?: An impairment charge is a negative signal indicating that the segment's business prospects have declined relative to the acquisition price.
How does power transmission solutions — goodwill impairment compare across companies?: Comparable to goodwill impairment tests and charges reported by any company with significant acquisition history.