What does process industries — goodwill impairment mean?

A charge taken when the value of a previously acquired business unit is determined to be lower than its recorded book value.

How do you interpret process industries — goodwill impairment?

An increase signals that past acquisitions are failing to meet performance expectations or that market conditions have deteriorated.

How does process industries — goodwill impairment compare across companies?

Standardized as 'Goodwill Impairment' across all industries following GAAP/IFRS requirements.

Timken TKR Process Industries — Goodwill Impairment

Discontinued — last reported Q4 '14

Similar metrics at other companies

GGGProcess — Goodwill, Impairment Loss

$1.95M—

RPMSpecialty Products Group — Goodwill Impairment

$2.85M—

FTVIndustrial Technologies — Impairment of goodwill

$85.3M—

GPCIndustrial — Goodwill impairment charge

$0—

IRIndustrial Technologies and Services — Impairment of goodwill

$0—

GGGIndustrial — Goodwill, Impairment Loss

$0—

Other financials

Income statement

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Revenue$1.2B+8.0%

Gross profit$394.0M+9.8%

Operating income$168.6M+17.1%

Net income$98.2M+25.4%

EPS (diluted)$1.40+26.1%

Balance sheet

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Cash & equivalents$344.7M-8.3%

Total debt$2.2B-2.1%

Total equity$3.2B+9.9%

Total assets$6.9B+4.7%

Cash flow

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Operating cash flow$39.3M-32.9%

CapEx$38.8M+10.2%

Free cash flow$500.0K-97.9%

Valuation

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Market cap$9.89B+39.1%

Enterprise value$11.74B+28.3%

P/E32.1×+10.4×

P/S2.1×+0.5×

Profitability

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Gross margin30.6%-0.4pp

Operating margin12.1%-0.5pp

Net margin6.6%-0.6pp

FCF margin8.2%+1.0pp

Returns & leverage

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Return on equity10.1%-1.8pp

Debt / equity0.7×-0.1×

Current ratio2.9×-0.3×

Where this comes from

Reported directly by Timken in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Timken’s 10-K, filed February 24, 2016, on SEC EDGAR. View the filing →

Questions, answered.

What does process industries — goodwill impairment mean?: A charge taken when the value of a previously acquired business unit is determined to be lower than its recorded book value.
How do you interpret process industries — goodwill impairment?: An increase signals that past acquisitions are failing to meet performance expectations or that market conditions have deteriorated.
How does process industries — goodwill impairment compare across companies?: Standardized as 'Goodwill Impairment' across all industries following GAAP/IFRS requirements.