How do you interpret u.s.retail consumer foods — goodwill impairment charges?

A negative signal indicating that past acquisitions are underperforming or that market conditions for the segment have deteriorated.

How does u.s.retail consumer foods — goodwill impairment charges compare across companies?

Standard impairment metric; comparable to 'Goodwill Impairment' charges reported by any company with significant intangible assets.

The J.M. Smucker Company SJM U.S.Retail Consumer Foods — Goodwill impairment charges

Discontinued — last reported Q4 '19

Similar metrics at other companies

HRLSpecialty Foods — Goodwill Impairment

$991K-81.6%

HRLRetail — Goodwill and Intangible Impairment

$17.69M—

ULSConsumer — Goodwill impairment

$0—

GISNorth America Retail — Goodwill Impairment

$0—

HASConsumer Products — Goodwill, Impairment Loss

$1.02B—

HRLFoodservice — Goodwill and Intangible Impairment

$0—

Other financials

Income statement

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Revenue$2.3B+5.8%

Gross profit$862.1M+4.7%

Operating income$444.5M+174%

Net income-$724.2M-9.3%

EPS (diluted)-$6.79-9.2%

Balance sheet

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Cash & equivalents$58.6M-16.2%

Total debt$7.0B-10.6%

Total equity$5.5B-8.9%

Total assets$16.2B-7.7%

Cash flow

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Operating cash flow$579.2M+47.0%

CapEx$95.3M+0.3%

Free cash flow$483.9M+61.9%

Valuation

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Market cap$11.82B-15.1%

Enterprise value$18.75B-13.4%

P/S1.3×-0.3×

Profitability

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Gross margin33.5%-5.3pp

Operating margin4%+2.4pp

Net margin-14.1%-19.1pp

FCF margin12.8%+3.4pp

Returns & leverage

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Return on equity-20.7%-26.1pp

Debt / equity1.3×0.0×

Current ratio0.8×0.0×

Where this comes from

Reported directly by The J.M. Smucker Company in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: The J.M. Smucker Company’s 10-K, filed June 19, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does u.s.retail consumer foods — goodwill impairment charges mean?: A non-cash loss recorded when the value of previously acquired brands in the segment drops.
How do you interpret u.s.retail consumer foods — goodwill impairment charges?: A negative signal indicating that past acquisitions are underperforming or that market conditions for the segment have deteriorated.
How does u.s.retail consumer foods — goodwill impairment charges compare across companies?: Standard impairment metric; comparable to 'Goodwill Impairment' charges reported by any company with significant intangible assets.