$ITW Insights BETA

Expenses

  • Gross Profit Margin is relatively consistent.
  • Avg. Gross Profit Margin is ≈41.44%, which is pretty good. It would be ideal if it were above 60%.

Cost Of Revenues

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Gross Profit

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Gross Profit Margin

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  • SGA is relatively consistent
  • Avg. SGA is ≈41.07%, which is moderate. Ideally, this would be under 30%. If it's closer to 70%, it's on the bad side of the range.
  • R&D as % of Gross Profit is 3.95% on average, which is very low. This can indicate that the business does not need to reinvent it's products in order to maintain it's competitive advantage(s) if it has them.

Selling, General & Admin Expense

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Research & Development

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Depreciation, Depletion & Amortization

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SGA Expense to Gross Profit Ratio

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R&D To Gross Profit Ratio

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DDA To Gross Profit Ratio

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Operating Expenses Total

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Operating Profits/Loss

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Income/Loss

  • The tax rate (Income Tax Paid / Pretax Income) is 45.19% on average, which is well above the 21% corporate tax rate. It might be worth trying to understand what's going on.
  • Net Income is relatively inconsistent. When Net Income is inconsistent, it's hard to determine a value of the company you can feel confident in.
  • Net Income / Total Revenues is 16.93% on average. This is good when it's above 10%. When comparing with competitors, the company with the highest ratio will likely be the one with the competitive advantage.
  • Earnings Per Share is relatively inconsistent. Erratic earnings picture is a red flag that indicates a fiercely competitive industry with lots of booms and busts. During the bust part of the cycle, the stock price might fall significantly after a bad earnings performance. This creates the illusion of a value buying opportunity but it’s not. Also keep in mind if the company has had stock splits or reverse splits.

Pretax Income

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Income Tax

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Net Profits/Loss

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Pretax Income YoY Change

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Income Tax Rate

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Net Profits/Loss YoY Change

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Basic EPS

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Net Income To Revenue Ratio

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Assets & Liabilities

  • Inventory has been relatively inconsistent. Rise and falls, especially if they aren't aligned with earnings, is not what you want because it indicates a boom and bust cycle. The rise of inventory happens after a boom cycle and fall of inventory usually happens after the bust part of the cycle.
  • Property, Plant and Equipment has been pretty consistent. A stable PPE indicates that the company might not need to continuously reinvest into recreating their products, which might indicate the presence of a competitive advantage.
  • Goodwill is relatively consistent. If Goodwill stays the same year after year, it’s because it’s paying under book value for companies it’s purchasing or because it’s not purchasing other companies.
  • Total Assets on average has been really high. This can be a competitive advantage because raising that much cash to compete with the business becomes much harder.

Cash & Short-Term Investments

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Cash & Equivalents

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Cash To Operating Expenses Ratio

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Inventory

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Receivables

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Total Short-Term Assets

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Property, Plant And Equipment

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Long-Term Investments

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Total Long-Term Assets

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Total Assets

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Net Income To Total Assets Percentage

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Accounts Payable

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Short-Term Debt

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Long Term Debt Due

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Total Short-Term Liabilities

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Long-Term Debt

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Other Long-Term Liabilities

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Total Long-Term Liabilities

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Total Liabilities

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Short-Term To Long-Term Debt Ratio

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Short-Term Assets To Debt Ratio

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Long-Term Debt To Net Income Ratio

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