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Crane Co. Financial Analysis


Company DescriptionCrane Co. Financial Analysis

Crane Co. is an engineered manufacturing products manufacturer. Crane Co. has four main units, comprising Fluid Handling, Payment and Merchandising Technologies, Aerospace and Electronics, and Engineered Materials. Crane Co.’s target customers are chemical, power, oil and gas, aerospace and defense, as well as a wide array of wide-ranging industrial companies.

“The Fluid Handling segment provides engineered fluid handling equipment, including Process Valves and Related Products, Commercial Valves and Other Products. Process Valves and Related Products includes on/off valves and related products for various applications in the chemical, oil and gas, power and general industrial end markets globally” (Crane Co. – Fluid Handling).

“The Payment & Merchandising Technologies segment includes Crane Payment Innovations (CPI) and Merchandising Systems. The Company’s CPI provides payment acceptance products to various markets, including retail self-checkout, vending, casino gaming, government lotteries, parking, transit fare collection, payment kiosks, and banking. Products for these markets include coin acceptors and dispensers, coin hoppers, coin recyclers, bill validators, bill recyclers and cashless systems” (Crane Co. – Payment & Merchandising Technologies).

“The Aerospace & Electronics segment supplies various components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace and military aerospace, and defense markets. Its brands include Hydro-Aire, ELDEC, Lear Romec, P.L. Porter, Keltec, Interpoint, Signal Technology, Merrimac Industries, and Polyflon.

Products include a range of custom designed, engineered products used in landing systems, sensing and utility systems, fluid management, seat actuation, power and microelectronic applications and microwave systems. Its products are sold directly to aircraft manufacturers, commercial Tier 1 integrators,(companies which make products specifically for an aircraft manufacturer) defense and space prime contractors, airlines, government agencies, including the United States Department of Defense, foreign allied defense organizations, aircraft seat manufacturers and aircraft maintenance, repair and overhaul (MRO) organizations” (Crane Co. – Aerospace & Electronics).

“The Engineered Materials segment manufactures fiberglass-reinforced plastic (FRP) panels and coils, primarily for use in the manufacturing of recreational vehicles (RVs), truck bodies, truck trailers, with additional applications in commercial and industrial buildings. Engineered Materials segment sells its products directly to RV, trailer, and truck manufacturers, and it uses distributors and retailers to serve the commercial and industrial construction markets” (Crane Co. – Engineered Materials).

The company employs over eleven thousand employees in twenty-six countries. Crane Co.’s main manufacturing plants are spread over in America, Europe, the Middle East, and Australia. Its main consumer markets are in Canada, the United Kingdom, the Middle East as well as continental Europe.

Background Information

Formerly known as R. T. Crane Brass and Bell Foundry, the company was founded on July 4, 1855, by its creator Richard Teller Crane in Chicago. The founder, R. T. Crane, was very passionate about the significance of business moral principles and standards, the confidence and benevolence they stimulate amongst company workers and clients, and the competitive advantage of taking the high road.

His sentiments continue to drive Crane Co.’s business values and serve as a point of reference by which the company measures its performance to date. From the start, the founder pledged to run the company “in the strictest honesty and fairness; to avoid all deception and trickery; to deal fairly with both customers and competitors; to be liberal and just towards employees and to put my whole mind upon the business” (Crane Co.- History).

Additionally, the founder “committed to place the comfort, health, and safety of the company workers foremost in his mind, and for that, he earned their respect and admiration. These guiding principles propagated by the founder have formed the bedrock of the company’s culture and have helped the business through times of peace and prosperity as well as through war, social unrest, and economic instability (Crane Co.- History).”

Through the years, the company has grown from small business to become a leading global manufacturer. Additionally, the company has undergone numerous structural changes mainly driven by the many acquisitions that the company has undertaken.

The Company reports its fiscal outcomes in harmony with U.S. accepted accounting principles (GAAP). On the other hand, management considers that “non-GAAP financial processes, which exclude specific non-recurring items, present additional useful comparisons between current results and results in prior operating periods, providing investors with a more unobstructed view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making commercial, operating, planning and compensation decisions and in evaluating the Company’s performance (Crane Co.- History).”

Current Events

In the recent past, Crane Co. has announced its intention to acquire Boston based Crane & Co. Inc. (“Crane Currency”) at an estimated $800 Million. Founded in 1801, Crane Currency is a forerunner in “advanced micro-optic security technology and a fully integrated supplier of secure and highly engineered banknotes for central banks all over the world (Crane Co.- History).” The purchase price represents approximately 8.5 times Crane Currency’s estimated 2017 adjusted EBITDA of $94 million.

While making the announcement, current President and Chief Executive Officer of Crane Co. Mr. Max Mitchell said “We are extremely excited to announce this transaction, which will be Crane Co.’s second largest ever, and brings together two companies with nearly 380 years of combined history. Crane Currency is the fastest growing, fully integrated global currency provider in the growing global banknote supply and security industry. Making it part of Crane Co. is a logical extension of our expanding presence in the currency and payment markets. Our combined businesses will be able to offer end-to-end currency and security solutions, from substrate manufacturing and banknote design and printing to micro-optics and banknote validation (Crane Co.- About Us). “

According to the Crane Co.’s President and C.E.O., the planned acquisition meets all of Crane Co.’s strategic and financial criteria for acquirements and provides the company with a path to a more than 10% adjusted annual growth for the next couple of years.

The acquisition of Crane Currency is subject to regulatory endorsements and normal acquisition conditions. “Crane Co. intends to finance the acquisition through a combination of cash on hand and additional debt. Commitments are in place to cover 100 percent of the financing needs in order to facilitate the closing of the transaction, which is expected to take place early in the first quarter of 2018 (Crane Co.- About Us).”

Industry Analysis

General Characteristics

The North American Industry Classification System (NAICS) classifies Crane Co. with code 333249, while the Standard Industrial System (SIC) classifies Crane Co. with code 3999. Additionally, the International Standard Industrial System (ISIC) classifies Crane Co. with the code 2829, which a classification reserved for companies that manufacture specialized purpose machinery (NAICS).

The 333249 as defined by the NAICS is granted to companies primarily “engage in the manufacture of industrial machinery except agricultural and farm-type; construction and mining machinery; food manufacturing-type machinery; semiconductor making machinery; sawmill, woodworking, and papermaking machinery; and printing machinery and equipment” (NAICS)

Products, Markets, and Customers

Crane Co. manufactures a wide range of products for various markets and customers. The company’s product range is used in almost all parts of the globe, and the customers range from government institutions, manufacturing plants, to individual consumers. It is said that “you cannot run a railroad or build a dam, operate a paper mill or lay a sewer, dig an oil well or heat a hospital, or launch a battleship or even take a shower without using one of the more than 40,000-odd  products that are made by Crane Co” (Crane Co. – About Us). The observation sums up the company’s product range. Crane Co.’s products are present in almost all areas of infrastructure development. The company’s products are manufactured in the four main units that specialize in different product segments.

The fluid handling segment manufactures liquid handling equipment, mainly consisting of various types of valves and related products. Manufacturing factories and service centers for these products are spread across America, Europe, the Middle East, Asia, and Australia. “Its brands include Stockham, Wask, Viking Johnson, IAT, Hattersley, NABIC, Sperryn, Wade, Rhodes, and Brownall. Manufacturing locations are located in the United Kingdom, and China, with additional sales offices in continental Europe and the Middle East and distribution facilities located throughout Canada.

Other Products includes pumps and related products for water and wastewater applications in the industrial, municipal, commercial, and military markets, primarily in the United States. Products are sold under the trade names Deming, Weinman, Burks, and Barnes. Facilities are located in the United States, Canada, and China” (Crane Co. – Fluid Handling)

The payment and merchandising technologies segment provide payment solutions to various markets. The planned acquisition of Crane Currency is expected to boost this unit and lead to enhanced revenues for Crane Co. Current product line includes “a range of vending equipment that dispenses food, snack, and hot and cold beverages. Other solutions include vending management software, cashless payment products, and wireless connectivity to enable its customers to operate their businesses. Primary customers include vending operators and food and beverage companies, primarily in the United States and Europe. Facilities are located in the United States and the United Kingdom” (Crane Co. – Payment & Merchandising Technologies)

Another critical segment of Crane Co.’s product line is the aerospace and electronics unit. This section manufactures products mainly for the commercial and military airspace machinery in addition to defense technology products. “Products include a range of custom designed, engineered products used in landing systems, sensing and utility systems, fluid management, seat actuation, power and microelectronic applications and microwave systems. Its products are sold directly to aircraft manufacturers, commercial Tier 1 integrators defense and space prime contractors, airlines, government agencies, including the United States Department of Defense, foreign allied defense organizations, aircraft seat manufacturers and aircraft maintenance, repair and overhaul (MRO) organizations. Facilities are located in the United States, Taiwan, and France” (Crane Co. – Aerospace & Electronics).

The last segment of Crane Co.’s product manufacturing units is the engineered materials unit. “The Engineered Materials segment manufactures fiberglass-reinforced plastic (FRP) panels and coils, primarily for use in the manufacturing of recreational vehicles (RVs), truck bodies, truck trailers, with additional applications in commercial and industrial buildings. Engineered Materials segment sells its products directly to RV, trailer, and truck manufacturers, and it uses distributors and retailers to serve the commercial and industrial construction markets. Manufacturing facilities are located in the United States” (Crane Co. – Engineered Materials)

From the Crane Co.’s wide range of products, the company has positioned itself as a global leader in industrial, and technology solutions. The vast and ever-increasing manufacturing and industrial sector across the globe provides Crane Co. with a guaranteed market for its products. It is however critical that the company continues to invest in innovation of new and market-driven products so as to remain competitive.

Concentration Structure

Globally, the typical Industrial Machinery and Equipment industry is made up of companies that manufacture power and hand tools, small-scale machinery, and other industrial components. Crane Co. falls into this category of businesses. Highly industrialized regions that include North America, Europe, the Middle East, and Asia provide the main market for products manufactured by these companies.

The average revenue for industrial machinery and equipment manufacturers experienced a 12.7 percent drop in the year 2016. The decline resulted from suspended investment decisions by customers from outlet sectors like construction and energy.

Typical Operating Cost Structure

The conventional operating cost structure for the NAICS Code 333249 – Other Industrial Machinery Manufacturing is best described by analyzing a review of a vertical common-size income statement for the last three years. As is common with firms that are in the manufacturing sector, the cost of goods is the primary business cost.

From the gathered data, gross profit has been increasing in the last three years. The figures indicate profit margins of 34.77 percent in 2014, 34.81 percent in 2015, and 36.02 percent in 2016. Relative to cost of goods, operating costs have been shifting parallel to the cost of goods sold. In 2014, the operating costs were at 23.93 percent, 2015, 21.20 percent, and 28.73 percent in 2016. All other expenses for the three-year period have remained mostly unchanged at less than 1 percent of the net sales for each year.

As seen in the data, profit before tax has been mostly inconsistent at 9.64 percent in 2014, 12.28 percent in 2015, and 5.97 percent in 2016. The up and down shift is mainly attributed to increased taxation form the government on large enterprises created by the adoption of a new taxation policy.

Typical Asset Structure

The standard operating cost structure for the NAICS Code 333249 – Other Industrial Machinery Manufacturing is best described by analyzing a review of a vertical common-size income statement for the last three years. The norm in the industry is that a majority share of the total company assets comprises of the trade receivables, the inventory, as well as the fixed assets.

From the available data, the trade receivables remained increased slightly in 2015 as compared to 2014 and declined somewhat in 2016 as compared to 2015. In 2014, the gross receivables stood at 12.05 percent. In 2015, the total receivables increased slightly to 12.06 percent and then decreased to 11.78 percent in 2016. An almost similar trend is observed in the inventories. In 2014, the stocks represented 10.71 percent of total assets. In 2015, the inventories rose slightly to 11.29 percent and then declined to 9.99 percent if total assets in 2016. Inverse to this, data shows an increasing trend in cash and equivalents at 10.04 percent, 10.89 percent, and 14.88 percent of total assets in 2014, 2015, and 2016 respectively.

Net fixed assets, less construction in progress, have fluctuated with a relatively small margin from 8.41 percent, to 8.27 percent, and 8.14 percent for the years 2014, 2015, and 2016 in that order. Net tangible assets make up comparatively small fraction of total assets; however, a relatively substantial downward drift is observed with net intangibles making 44.77 percent, 44.50 percent, and 41.75 percent for the years 2014, 2015, and 2015 respectively.

Long-term debts make up a comparatively small percentage of total liabilities with figures indicating a 21.71 percent, 22.31 percent, and 21.74 percent representation of total liabilities in the years 2014, 2015, and 2016 respectively. On the other hand, accounts payable represent 6.63 percent, 6.69 percent, and 6.51 percent of total liabilities in the years 2014, 205, and 2016 respectively. The difference between the total assets and the total liabilities represents the total equity, which stands at 30.71 percent in 2014, 34.15 percent in 2015, and 33.07 percent in 2016.

External Influences

Several external factors continue to affect the mechanical and industrial parts manufacturing sector. A broad analysis of these factors reveals that the industry has been positively impacted in the recent past. The positive impact has, in turn, led to the growth of the sector in both developed and developing countries.

The introduction of regulations to limit environmental by most nations as well as the backing of clean energy sources have positively impacted the industry’s growth, especially in developed countries. The growth has been the result of an increased demand for industrial products needed to develop the clean energy solutions. Additionally, the rapid global population and economic growth experienced in the last few decades has increased the demand for energy and freshwater sources. The increase in demand for energy and clean water has, in turn, generated an increased demand for mechanical and industrial products used in the exploration, production, and distribution of energy and fresh water, consequently leading to a growth of the mechanical and industrial parts manufacturing sector.

Major Competitor

Among other, Dover Corporation is a significant competitor of Crane Co. in the mechanical and industrial products manufacturing sector. Like Crane Co., Dover Corporation has four main product segments.

The Energy segment of Dover Corporation deals “provides customers with solutions and services that ensure the safe and efficient exploration, production and processing of fuels globally. The unit focuses mainly on bearings, compression components, as well as automation markets” (Dover Corporation). The Engineered Systems segment of Dover Corporation is a “market leader in the design, manufacture, and servicing of critical equipment and components that serve the fast moving consumer goods market, digital textile printing, vehicle servicing, environmental solutions as well as industrial end markets” (Dover Corporation). The third segment of Dover Corporation’s product line is the Fluids unit. The fluids unit focuses “on the safe handling of critical fluids across the retail fueling, chemical, hygienic, oil & gas and industrial end-markets” (Dover Corporation). The final unit of the company’s product line is the Refrigeration and Food Equipment segment. The unit is a leading market provider of “innovative and energy efficient equipment and systems serving the commercial Refrigeration and Food Equipment end markets” (Dover Corporation).

Dover Corporation attributes its success in the global market to its ability to combine its global presence with operational agility. The company, which has been operation for approximately 60 years, employs close to 29,000 workers, who have been trained and nurtured to take an ownership mindset and to collaborate with customers to achieve success for the company. With its headquarters in Downers Grove, Illinois, Dover Corporation trades on the New York Stock Exchange (NYSE) under the name “DOV.”

The company’s revenue has been on an up and down shift in the last three years. Available figures indicate that Dover Corporation has revenues of $7,752,758, $6,956,311, and $6,794,342 for the periods of 2014, 2015, 2016 respectively. The company’s return on average equity has experienced similar upward and downward shifts. The company reported a return on average equity of 17.1 percent in 2014, 23.7 percent in 2015, and 13.7 percent in 2017. During the same three-year period, the Dover Corporation’s net profit margin was 7.49 percent, 12.50 percent, and 10.0 percent for 2014, 2015, and 2016 respectively.

Areas of Significant Change, Development, or Growth

According to a study published by the Global Markets Insights, the industrial machinery market is set to reach an estimated $771.59 Billion by the year 2024 (Global Market Insights Inc.). Although the industry seems to have reached its maturity stage, changes brought about by government regulations across the globe have led to a renewed growth pattern.

Growth in both the global population and economic stability has led to an increased demand for environmentally friendly energy as well as clean water. This need for clean energy and water has stirred industrial machinery sector growth, especially in the developing nations (Misthal et al.). This demand has, in turn, spurred an increase in industrial machinery and industrial machinery parts. As such, manufacturing companies are witnessing a growth in terms of market and sales. One of the fastest growing demand creators is the Heating Ventilation, Air Conditioning (HV AC) sector. Climate change has resulted in warmer temperatures across the globe, and as such, the demand for HV AC equipment is on the rise.

In recent times, more and more companies in the industrial machinery sector are shifting their manufacturing operations from high operational cost regions like the United States and Europe to the lower-cost areas like China, Brazil, and India. Additionally, regulatory support in terms of tax reliefs is influencing the movement.

As a result of the changing consumer lifestyles, more people are opting for packed foods. This will ultimately push the demand for food processing and preservation machinery and consequently affect the industrial machinery manufacturing sector positively.

Company Analysis

Corporate Mission and Goals

Crane Co. engages in the manufacture of engineered industrial products. Crane Co. operates four segments including Fluid Handling, Payment and Merchandising Technologies, Aerospace and Electronics, and Engineered Systems.

The company “employees share a proud 150-year-plus history of doing business the right way, treating people fairly, dealing honestly and ethically with customers, suppliers, and shareholders, and working hard to meet or exceed the expectations of customers. They also share a fascinating history of innovation dating from the early years of the Industrial Revolution to the current era of technology-driven product development and improvement” (Crane Co. – About Us). To date, the company is guided by the business principles of the founder which he established more than a hundred and fifty years ago.

Additionally, the company is dedicated to the highest degree of business ethics. Within that context, Crane Co.’s objective is to enhance Economic Value Added (EVA) by continuously transitioning to become a more integrated operating company. Crane Co. endeavors to “create value for all our stakeholders with a highly disciplined approach to materially strengthening our businesses through successful implementation of the Crane Business System, through strategic linkages among our businesses, and through utilization of strong free cash flow for strategic acquisitions” (Crane Co. – About Us).

Using the Crane Business System, Crane Co. “builds global networks of people and solutions with reliable quality, delivery, and cost that generate profitable organic growth across the globe.” The company utilizes the Crane Business System to “evaluate and reward people, create annual plans, implement strategy deployment processes, visually manage results in factories and offices, and link value streams. (Crane Co.- Crane Business System)”

Crane Co. Ratio Analysis

Liquidity Analysis

The liquidity analysis helps to determine a company’s liquidity ratio. The quick ratio is a reflection of a company’s ability to meet its obligations without necessarily having to offload inventories from its current assets (Elmerraji). A company with a very high liquidity level is not attractive to investors. In the same manner, a company with very low liquidity levels is also not attractive to investors.

Very high liquidity levels suggest that the company has very few fixed assets and inventories, which ultimately means the company is a high-risk business. On the other hand, very low liquidity levels mean that the business has cash flow problems and may not be able to cater for operational costs. The ideal liquidity level therefore is one that is neither too high, nor too low in relation to the company’s fixed assets.

According to available data, Crane Co.’s quick ratio stands at 0.18 against Dover Corporation’s ratio of 0.18. The higher the liquidity ratio, the better a company is doing liquidity wise. As such, in comparison to its competitor, Cover Corporation, Crane Co. share the same liquidity ratio thus they are operating at the same liquidity level.

When compared to the average industry quick ratio of 3.26, then Crane Co.’s ratio is significantly lower. This difference means that there are more companies within the industry with much higher liquidity levels.

Long-Term Debt Analysis

The long-term debt analysis is the ratio between total long-term debts or liabilities in compared to a company’s assets (Elmerraji). As per the provided data, the overall long-term debt for Crane Co. stands at 13.87 while that of Dover Corporation stands at 13.65. The analysis reveals that Crane Co. has utilized more borrowed resources to acquire assets as compared to Dover Corporation.

The average industry ration is 12.94 percent meaning that Crane Co.’s debt to equity ratio is slightly higher as compared to other companies in the industrial manufacturing industry. However, this higher long-term debt to equity ratio can be explained by Crane Co.’s high fraction of total long-term assets.

Profitability Analysis

The profitability analysis ratio is a reflection of a company’s overall efficiency and performance(Elmerraji). The profitability analysis is a vital feature of a company’s fiscal report that potential investors look before deciding to invest in a company.  Crane Co.’s profitability analysis reveals that the company is operating at a 36.02 percent profit level. On the other hand, Dover Corporation is running at a slightly higher profit level of 36.38 percent.

The profitability analysis for the industry stands at 36.39, which is slightly higher than both Crane Co. and Dover Corporation. The difference is minimal, and as such, Crane Co. and Dover Corporation can be said to be doing relatively well based on industry averages.

Investor Analysis

Investors use the investor analysis index to determine the attractiveness of a company. The analysis helps investors to decide which company has potential for growth and where they are likely to recover their investments faster (Elmerraji). In determining the best company to invest in, investors more often than not refer to the price/earnings ratio.

The price/earnings ratio for Crane Co stands at has shifted significantly in the last three years. The ratio has grown from 18.42 in 2014, to 12.41 in 2015, and by 2016, it stood at 34.84. In the same period, the price/earnings ratio for Dover Corporation has steadily grown from a low of 15.94 in 2014, to 16.49 in 2015, and finally to 23.06 in 2016. From the data, both companies have made tremendous growth and quite attractive to investors.

The industry average for the industry stands at 28.62. As such, Crane Co. with 34.84 is likely to attract more investors as compared to other companies in the industry. With a price/earnings ratio as high as that of Crane Co. any company is bound to attract new investors.

Critical Analysis

Founded in 1855, Crane Co. is a well-known global manufacturer of industrial machinery. The North America Industry Classification System classifies the company under code 33249.

An analysis of the company’s accounting information reveals the company’s financial well-being. The company realized a working capital of $2.925 Billion, $2.740 Billion, and $ 2.748 Billion in the years 2014, 2015, and 2016 respectively. The data reveals that Crane Co.’s working capital is slightly lower in 2016 as compared to 2014. From the analysis, it is evident that Crane Co. has a more moderate working capital than Dover Corporation. The working capital for the industry presents a descending drift.

A further look at Crane Co.’s data reveals that its price/earnings ratio is marginally higher than that of the industry. This shows that although the company does not have a vast working capital like other industry companies, it is run efficiently and is thus able to achieve a high price/earnings ratio. An investor willing to invest in this industry would be better placed to invest in Crane Co. instead of the other industry players.

  • Crane Co. – About Us. “Crane Co. – About Us.” Craneco.com. N.p., 2017. Web. 9 Dec. 2017.
  • Crane Co. – Aerospace & Electronics. “Crane Co. – Aerospace & Electronics.” Craneco.com. N.p., 2017. Web. 9 Dec. 2017.
  • Crane Co. – Engineered Materials. “Crane Co. – Engineered Materials.” Craneco.com. N.p., 2017. Web. 9 Dec. 2017.
  • Crane Co. – Fluid Handling. “Crane Co. – Fluid Handling.” Craneco.com. N.p., 2017. Web. 9 Dec. 2017.
  • Crane Co. – Payment & Merchandising Technologies. “Crane Co. – Payment & Merchandising Technologies.” Craneco.com. N.p., 2017. Web. 9 Dec. 2017.
  • Dover Corporation. “Redefining What’s Possible | Dover Corporation.” Dovercorporation.com. N.p., 2017. Web. 9 Dec. 2017.
  • Elmerraji, Jonas. “Analyze Investments Quickly with Ratios.” Investopedia. N.p., 2017. Web. 9 Dec. 2017.
  • Global Market Insights Inc. “Industrial Machinery Market Size Worth $771.5Bn By 2024: Global Market Insights Inc..” Globe Newswire News Room. N.p., 2017. Web. 9 Dec. 2017.
  • Misthal, Barry et al. “2017 Industrial Manufacturing Trends.” Strategyand.pwc.com. N.p., 2017. Web. 9 Dec. 2017.
  • NAICS. “Industry Statistics Portal: NAICS.” Census.gov. N.p., 2017. Web. 9 Dec. 2017.


BALANCE SHEET 2016 2015 2014
——— ——— ———
Current Assets:
  Cash 14.88% 10.89% 10.04%
  Marketable Securities 0.00% 0.00% 0.00%
  Gross Receivables 11.78% 12.06% 12.05%
  Less: Allowance for Bad Debts 0.21% 0.14% 0.14%
      Net Trade Receivables 11.56% 11.92% 11.91%
  Inventories 9.99% 11.29% 10.71%
  Prepaid Expenses 0.53% 0.61% 0.59%
  Other Current Assets 1.43% 1.35% 1.39%
——— ——— ———
Total Current Assets 38.39% 36.07% 34.64%
Long-Term Assets:
Net Tangible (Fixed) Assets (other than construction in progress) 8.14% 8.27% 8.41%
Construction in Progress 0.00% 0.00% 0.00%
Intangible Assets 41.75% 44.50% 44.77%
Investments 0.00% 0.00% 0.00%
Other Nonoperating Assets 3.65% 3.26% 3.67%
Other Operating Assets 8.07% 7.90% 8.51%
——— ——— ———
Total Long-Term Assets 61.61% 63.93% 65.36%
Total Assets 100.00% 100.00% 100.00%
Current Liabilities:
  Accounts Payable 6.51% 6.69% 6.63%
  Short Term Loans 0.00% 1.49% 2.92%
  Current Maturity of L.t. Debt 2.07% 2.25% 2.29%
  Other Current Liabilities 6.61% 6.74% 6.71%
——— ——— ———
Total Current Liabilities 15.19% 17.17% 18.55%
Long-Term Liabilities:
  Long-term Debt 21.74% 22.31% 21.71%
  Reserves 0.00% 0.00% 0.00%
  Deferred Liabilities 1.24% 1.50% 1.34%
  Noncontrolling Interest 0.35% 0.34% 0.31%
  Redeemable Preferred 0.00% 0.00% 0.00%
  Other Long-term Liabilities 28.40% 24.53% 27.38%
——— ——— ———
Total Long-term Liabilities 51.73% 48.69% 50.74%
Total Liabilities 66.92% 65.85% 69.29%
Shareholders’ Equity:
  Preferred Equity 0.00% 0.00% 0.00%
  Common Equity-incl. Ret. Ern. 33.07% 34.15% 30.71%
——— ——— ———
Total Equity 33.07% 34.15% 30.71%
Total Liabilities and Equity 99.99% 100.00% 100.00%
= = = =


INCOME STATEMENT 2016 2015 2014
———- ———- ———-
Net Sales 100.00% 100.00% 100.00%
Less: Cost of Goods Sold 63.98% 65.19% 65.23%
———- ———- ———-
Gross Profit 36.02% 34.81% 34.77%
Other Operating Revenue 0.00% 0.00% 0.00%
Less: Operating Expenses 28.73% 21.20% 23.93%
———- ———- ———-
Operating Income 7.29% 13.61% 10.84%
Less: Interest Expense 1.33% 1.37% 1.34%
      (no capitalized interest)
Other Income (Expenses) 0.01% 0.04% 0.14%
Unusual or Infreq. Item;
  Gain (Loss) 0.00% 0.00% 0.00%
Equity in Earnings of Assoc.;
  Profit (Loss) 0.00% 0.00% 0.00%
———- ———- ———-
Income before Taxes 5.97% 12.28% 9.64%
Less: Taxes Related to Operations 1.47% 3.91% 3.01%
———- ———- ———-
N.I. before Noncontr. Inc 4.51% 8.38% 6.63%
Noncontrolling income (loss) -0.04% -0.04% -0.03%
———- ———- ———-
N.I. before Nonrecurring Items 4.47% 8.34% 6.60%
Oper. of Discontinued Segment;
  Income (Loss) 0.00% 0.00% 0.00%
Disposal of Discont. Segment;
  Gain (Loss) 0.00% 0.00% 0.00%
Extraordinary Item;
  Gain (Loss) 0.00% 0.00% 0.00%
Cum. Effect of Acct Change;
  Gain (Loss) 0.00% 0.00% 0.00%
———- ———- ———-
Net Income (Loss) 4.47% 8.34% 6.60%
= = = =


2016 2015 2014
Cash & Equivalents 13.1 9.2 9.1
Trade Receivables 28.0 28.9 29.2
Inventory 24.0 29.6 30.9
All Other Current Assets 2.8 4.2 2.6
Total Current Assets 67.8 72.0 71.9
Fixed Assets 19.8 16.1 18.3
Intangibles 8.5 7.2 5.6
Other Non-Current Assets 3.9 4.7 4.2
Total Assets 100.0 100.0 100.0
Notes Payable-Short Term 4.6 6.8 8.5
Cur. Mat. LTD 1.7 1.5 1.1
Trade Payables 14.4 13.2 12.1
Income Taxes Payable 0.2 0.2 0.2
Other Current Liabilities 14.5 15.4 17.1
Total Current Liabilities 35.4 37.2 39.1
Long Term Debt 8.4 11.7 8.6
Deferred Taxes 0.4 0.4 0.4
Other Non-Current Liabilities 9.5 4.6 7.3
Net Worth 46.3 46.1 44.4
Total Liabilities and Net Worth 100.0 100.0 100.0


2016 2015 2014
Net Sales 100.0 100.0 100.0
Gross Profit 24.8 24.4 27.6
Operating Expenses 17.8 17.6 20.2
Operating Profit 7.0 6.8 7.4
Other Expenses (net) 0.4 -0.1 0.4
Profit Before Taxes 6.6 6.9 7.0


LIQUIDITY 2016 2015 2014
Days’ Sales in Receivables 53.62 53.59 51.89
Accounts Receivable Turnover 6.82 6.70 14.07
A/R Turnover in Days 53.53 54.49 25.94
Days’ Sales in Inventory 71.10 77.02 70.72
Inventory Turnover 4.89 4.78 10.32
Inventory Turnover in Days 74.67 76.29 35.36
Operating Cycle 128.20 130.78 61.30
Working Capital        795        631        555
Current Ratio       2.53       2.10       1.87
Acid Test       1.74       1.33       1.18
Cash Ratio       0.98       0.63       0.54
Sales to Working Capital 3.85 4.62 10.54
Cash Flow/Cur. Mat. of Debt & NP       4.48       1.84       1.47
Times Interest Earned 5.50 9.95 8.19
Fixed Charge Coverage 4.65 8.28 6.78
Debt Ratio 66.92% 65.85% 69.29%
Debt/Equity 202.35% 192.86% 225.61%
Debt to Tangible Net Worth -770.90% -635.85% -492.99%
Cash Flow/Total Debt 13.87% 10.43% 11.04%
PROFITABILITY 2016 2015 2014
Net Profit Margin 4.51% 8.38% 6.63%
Total Asset Turnover 0.81 0.81 1.70
Return on Assets 3.66% 6.76% 11.24%
Operating Income Margin 7.29% 13.61% 10.84%
Operating Asset Turnover 1.52 1.56 3.29
Return on Operating Assets 11.08% 21.17% 35.63%
Sales to Fixed Assets 9.90 9.68 20.15
Return on Investment 5.34% 9.15% 15.72%
Return on Total Equity 10.80% 20.77% 36.42%
Return on Common Equity 10.80% 20.77% 36.42%
Gross Profit Margin 36.02% 34.81% 34.77%
INVESTOR ANALYSIS 2016 2015 2014
Degree of Financial Leverage 1.22 1.11 1.14
Earnings per Share 2.07 3.89 3.23
Price/Earnings Ratio 34.84 12.41 18.42
Percentage of Earnings Retained 37.13% 66.46% 61.71%
Dividend Payout 63.77% 33.93% 39.01%
Dividend Yield 1.83% 2.73% 2.12%
Book Value per Share      19.23      19.61      18.23
Materiality of Options #DIV/0! #DIV/0! #DIV/0!
Oper. Cash Flow per Share 5.36 3.90 4.43
Oper. Cash Flow/Cash Dividends 4.12 2.99 3.57
Year-end Market Price 72.12 48.27 59.49


LIQUIDITY 2016 2015 2014
Days’ Sales in Receivables 69.15 59.74 56.76
Accounts Receivable Turnover 5.60 5.93 12.86
A/R Turnover in Days 65.16 61.50 28.38
Days’ Sales in Inventory 73.51 66.78 65.98
Inventory Turnover 5.17 5.27 11.06
Inventory Turnover in Days 70.65 69.31 32.99
Operating Cycle 135.81 130.81 61.37
Working Capital    648,873  1,051,828    795,120
Current Ratio       1.33       1.77       1.39
Acid Test       0.83       1.08       0.92
Cash Ratio       0.18       0.26       0.33
Sales to Working Capital 7.99 7.53 19.50
Cash Flow/Cur. Mat. of Debt & NP       2.08       6.28       1.22
Times Interest Earned 6.05 7.08 9.31
Fixed Charge Coverage 5.14 6.01 7.81
Debt Ratio 62.44% 57.65% 59.02%
Debt/Equity 166.23% 136.13% 144.01%
Debt to Tangible Net Worth -246.17% -329.44% -459.31%
Cash Flow/Total Debt 13.65% 19.13% 17.83%
PROFITABILITY 2016 2015 2014
Net Profit Margin 7.49% 8.57% 10.04%
Total Asset Turnover 0.73 0.79 1.72
Return on Assets 5.44% 6.76% 17.23%
Operating Income Margin 10.52% 13.24% 15.68%
Operating Asset Turnover 1.89 1.91 4.04
Return on Operating Assets 19.83% 25.23% 63.27%
Sales to Fixed Assets 7.55 8.23 18.52
Return on Investment 7.91% 9.75% 24.94%
Return on Total Equity 13.67% 16.22% 42.05%
Return on Common Equity 13.67% 16.22% 42.05%
Gross Profit Margin 36.38% 36.92% 38.36%
INVESTOR ANALYSIS 2016 2015 2014
Degree of Financial Leverage 1.20 1.16 1.12
Earnings per Share 3.25 3.74 4.61
Price/Earnings Ratio 23.06 16.49 15.94
Percentage of Earnings Retained 47.27% 56.71% 66.78%
Dividend Payout 52.92% 43.85% 33.62%
Dividend Yield 2.30% 2.66% 2.11%
Book Value per Share      15.61      14.94      15.16
Materiality of Options #DIV/0! #DIV/0! #DIV/0!
Oper. Cash Flow per Share 5.50 5.96 5.63
Oper. Cash Flow/Cash Dividends 3.21 3.68 3.68
Year-end Market Price 74.93 61.68 73.47


2016 2015 2014
Days Sales in Receivables 54 50 49
Accounts Receivable Turnover 6.8 7.3 7.4
A/R Turnover in Days 54 50 49
Days’ Sales Inventory 76 72 91
Inventory Turnover 4.8 5.1 4
Inventory Turnover in Days 76 72 91
Operating Cycle 1330 122 140
Working Capital 285064 15117996 1760310
Current Ratio 2.1 1.9 2.1
Acid Test 1.1 1.0 0.9
Cash Ratio N/A N/A N/A
Sales to Working Capital 5.0 6.6 5.6
Cash Flow/Cur. Mat. Of Debt & NP 5.3 6.3 7.3
2016 2015 2014
Long Term Debt Paying Ability
Times Interest Earned 12.7 2.7 23.6
Fixed Charge Coverage N/A N/A N/A
Debt Ratio 56.52 62.96 60
Debt/Equity 130 170 150
Debt to Tangible Net Worth N/A N/A N/A
Cash Flow/ Total Debt N/A N/A N/A
  2016 2015 2014
Net Profit Margin 1.9 3.1 5.5
Total Asset Turnover 1.6 1.9 1.9
Return on Assets 3.1 2.4 5.8
Operating Income Margin N/A N/A N/A
Operating Asset Turnover N/A N/A N/A
Return on Operating Assets N/A N/A N/A
Sales to Fixed Assets 8.3 12.4 11.3
Return on Investment N/A N/A N/A
Return on Total Equity 16.8 9.4 16.3
Return on Common Equity N/A N/A N/A
Gross Profit Margin 24.8 24.4 27.6


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