On Nov. 21, technology product distributor Tech Data
- Tech Data doesn't make anything, it simply acts as a distributing hub where technology manufacturers, retail-stage distributors, and a few retailers come together to exchange cash for goods. It doesn't skim much off the top, and even a small change in gross margins cascades quickly into very large bottom-line changes, which is what happened in this quarter.
- Under the circumstances, that share count reduction looks positively shareholder-loving, not just friendly.
- We need your help to give Tech Data its place in the Motley Fool CAPS universe. The stock doesn't carry a star rating yet, and only 11 investors like you have offered an opinion on the company as of this writing. But you can add your own take simply by clicking here.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$5,431.3 |
$5,073.0 |
7.1% |
|
Net Profit |
$9.6 |
$23.0 |
(58.2%) |
|
EPS |
$0.18 |
$0.40 |
(55%) |
|
Diluted Shares |
54.6 |
57.9 |
(5.8%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
4.56% |
4.93% |
(0.37) |
|
Operating Margin |
0.59% |
0.84% |
(0.25) |
|
Net Margin |
0.18% |
0.45% |
(0.27) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$128.8 |
$245.6 |
(47.6%) |
|
Accounts Rec. |
$2,329.9 |
$2,046.5 |
13.8% |
|
Inventory |
$1,573.2 |
$1,530.0 |
2.8% |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$2,155.3 |
$2,288.6 |
(5.8%) |
|
Long-Term Debt |
$13.8 |
$14.5 |
(5.1%) |
Learn the ways of the balance sheet.
Cash Conversion Checkup
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Days in Inventory |
25.1 |
27.4 |
(2.3) |
|
Days in Receivables |
35.5 |
35.0 |
0.5 |
|
Days Payables Outstanding |
33.9 |
37.8 |
(3.9) |
|
Cash Conversion Cycle |
26.7 |
24.6 |
2.1 |
Read up on cash conversion metrics.
Cash Flow Highlights
Tech Data denied us a cash flow statement. Not cool, guys.
Find out why Fools always follow the money.
Competitors:
-
Ingram Micro
(NYSE:IM) -
SYNNEX
(NYSE:SNX) -
Bell Microproducts
(NASDAQ:BELM) -
ScanSource
(NASDAQ:SCSC)
Major Customers:
-
CDW
(NASDAQ:CDWC) -
Systemax
(NYSE:SYX)
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. CDW is a Stock Advisor selection. Fool rulesarehere.
