ROLLP Financial Results for Fiscal Year 2023

Financial Overview

For the fiscal year 2023, ROLLP, trading under the ticker ROLLP on the NASDAQ Global Select market, reported strong financial performance within the industrials sector, specifically in the tools and accessories manufacturing industry. Below is a detailed analysis of the key financial results and ratios from the annual report.

Financial Performance

During the fiscal year 2023, ROLLP achieved total revenues of $1.56 billion. The cost of revenue amounted to $889.8 million, resulting in a gross profit of $670.5 million, which translates to a gross profit margin of 42.97%. Operating expenses, encompassing selling, general, and administrative expenses, totaled $328.3 million. The company reported an operating income of $342.2 million, reflecting an operating income ratio of 21.93%.

Net income for the period stood at $186.9 million, with an earnings per share (EPS) of $6.46 and a diluted EPS of $6.40. The net income ratio is noted at 11.98%, indicating strong profitability.

Cash Flow Analysis

The net income from operations totaled $209.9 million. Depreciation and amortization expenses were recorded at $119.3 million. Despite a cash outflow from accounts receivables of $13.4 million and inventory of $31.6 million, the company managed a positive operating cash flow of $274.7 million. Capital expenditure stood at $33.2 million, leading to a free cash flow of $241.5 million.

Financing activities used a net cash of $223.5 million, mainly due to debt repayments of $3.6 million, common stock repurchases of $11 million, and dividends paid amounting to $23 million. The effect of foreign exchange changes on cash was a negative $900,000, leading to a net change in cash position by $1.9 million. The cash at the end of the period was $63.5 million.

Balance Sheet Highlights

As of the end of fiscal year 2023, ROLLP reported total assets of $4.68 billion. Current assets stood at $965.5 million, including inventory worth $622.8 million and net receivables of $255.2 million. The company's total liabilities were $1.93 billion, with current liabilities amounting to $294.3 million and long-term debt at $1.22 billion. The total stockholders' equity was recorded at $2.75 billion.

Key Ratios and Market Data

ROLLP exhibited an Altman Z Score of 3.60 and a Piotroski Score of 7, indicating a strong financial position and potential for continued growth and stability. The current market capitalization is valued at $8.44 billion, with a total working capital of $665.70 million.

Key trailing twelve months (TTM) ratios revealed a P/E ratio of 42.37 and a PEG ratio of 1.69. The current ratio was a healthy 328.29%, and the quick ratio stood at 103.36%. The company maintained a cash ratio of 24.55%. The gross profit margin TTM was 39.31%, with an operating profit margin of 19.64%, and a net profit margin of 12.82%. The return on assets (ROA) was 4.21% and the return on equity (ROE) was 7.56%.

Conclusion

In summary, ROLLP's financial performance for fiscal year 2023 showcased robust revenue figures, strong profitability, and solid cash flows. Coupled with a healthy balance sheet and favorable financial ratios, the company is well-positioned to capitalize on future growth opportunities within the industrial manufacturing sector.

For more detailed information, please refer to the full report available here.