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Williams Companies WMB Difference between equity method investment carrying value and book value

Difference between equity method investment carrying value and book value at other companies

Williams Companies logo
Williams CompaniesWMB
$634M-18.0%
Starwood Property Trust logo
Starwood Property TrustSTWD
$0
Genesis Energy logo
Genesis EnergyGEL
$255.7M-5.3%
ICU Medical logo
ICU MedicalICUI
$19.4M
BorgWarner logo
BorgWarnerBWA
-$180M+19.3%
BorgWarner logo
BorgWarnerBWA
-$180M+19.3%

Other financials

Income statement

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Revenue$3.1B+9.8%
Operating income$1.1B+32.3%
Net income$827.0M+51.5%
EPS (diluted)$0.68+51.1%

Balance sheet

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Cash & equivalents$70.0M-90.8%
Total debt$26.6B+2.9%
Total equity$12.5B+0.7%
Total assets$55.7B+3.5%

Cash flow

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Operating cash flow$1.4B+15.8%
CapEx$954.0M+39.9%
Free cash flow$485.0M-13.5%

Valuation

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Market cap$87.77B+22.6%
P/E32.4×+13.2×
P/S7.4×+1.6×

Profitability

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Operating margin34.3%-0.2pp
Net margin20.6%-6.7pp
FCF margin16%-13.4pp

Returns & leverage

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Return on equity19%-4.7pp
Debt / equity2.1×+0.1×
Current ratio0.4×-0.1×

Where this comes from

Reported directly by Williams Companies in its filing.

Tagged under the XBRL concept us-gaap:EquityMethodInvestmentDifferenceBetweenCarryingAmountAndUnderlyingEquity.

The source filing: Williams Companies’s 10-K, filed February 25, 2025.

Filed
Feb 25, 2025
Fiscal year
FY2024
Accession
0000107263-25-000031

Certain other equity-method investments have a carrying value less than Williams’ portion of the underlying equity in the net assets primarily due to other than temporary impairments that Williams recognized but were not required to be recognized in the investees’ financial statements. These differences total approximately $634 million and $773 million at December 31, 2024 and 2023, respectively, and were assigned to property, plant, and equipment and customer relationship intangible assets. Differences in the carrying value of Williams’ equity-method investments and its portion of the equity in the underlying net assets are generally amortized over the remaining

Item 8. Financial Statements and Supplementary Data

FAQ

What is Williams Companies's difference between equity method investment carrying value and book value?
Williams Companies (WMB) reported difference between equity method investment carrying value and book value of $634M in Q4 2024.
What is the long-term trend for Williams Companies's difference between equity method investment carrying value and book value?
Over 4 years (2020 to 2024), Williams Companies's difference between equity method investment carrying value and book value has grown at a -16.4% compound annual growth rate (CAGR), from $1.3B to $634M.
What does difference between equity method investment carrying value and book value mean?
This represents the basis difference between the carrying amount of an equity method investment and the company's underlying equity in the net assets of the investee. This difference often arises from fair value adjustments made at the time of the initial investment or subsequent acquisitions. It is essential for understanding the valuation gap between book value and the underlying net asset value of joint ventures.

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