What does europe — goodwill impairment mean?

The reduction in the recorded value of goodwill for the European segment due to a decline in its estimated fair value.

How do you interpret europe — goodwill impairment?

An increase suggests deteriorating business performance or market conditions in the European region, while a decrease indicates stable or improving asset valuations.

How does europe — goodwill impairment compare across companies?

Commonly reported by multinational corporations under GAAP/IFRS when testing for impairment annually or upon triggering events.

Watts Water Technologies, Inc. WTS Europe — Goodwill Impairment

Discontinued — last reported Q4 '15

Similar metrics at other companies

GMEEurope — Goodwill Impairment

$0-100%

REurope — Goodwill Impairment

$4M—

MODEurope — Goodwill Impaired Accumulated Impairment Loss

$8.7M0.0%

RLEurope — Goodwill Impairment

$0—

GMEEurope — Goodwill Impaired Accumulated Impairment Loss

$499.5M0.0%

GPCEurope — Goodwill impairment charge

$507M—

Other financials

Income statement

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Revenue$677.3M+21.4%

Gross profit$326.1M+19.7%

Operating income$133.0M+51.7%

Net income$99.6M+34.6%

EPS (diluted)$2.97+34.4%

Balance sheet

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Cash & equivalents$374.7M+11.3%

Total debt$197.8M+0.3%

Total equity$2.1B+18.3%

Total assets$2.9B+17.6%

Cash flow

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Operating cash flow$17.9M-67.6%

CapEx$11.3M+17.7%

Free cash flow$6.6M-85.5%

Valuation

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Market cap$11.48B+42.5%

Enterprise value$11.31B+42.8%

P/E31.3×+3.8×

P/S4.5×+0.9×

Profitability

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Gross margin49.2%+1.6pp

Operating margin19.3%+2.3pp

Net margin14.3%+1.3pp

FCF margin12.4%-2.6pp

Returns & leverage

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Return on equity18.9%+1.3pp

Debt / equity0.1×0.0×

Current ratio2.7×+0.3×

Where this comes from

Reported directly by Watts Water Technologies, Inc. in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Watts Water Technologies, Inc.’s 10-K, filed February 23, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does europe — goodwill impairment mean?: The reduction in the recorded value of goodwill for the European segment due to a decline in its estimated fair value.
How do you interpret europe — goodwill impairment?: An increase suggests deteriorating business performance or market conditions in the European region, while a decrease indicates stable or improving asset valuations.
How does europe — goodwill impairment compare across companies?: Commonly reported by multinational corporations under GAAP/IFRS when testing for impairment annually or upon triggering events.