On Feb. 8, Smith & Nephew
- Sales increased by 15.1%, which can be attributed to overall healthy performance in all segments and successful new products.
- Long-term debt decreased by 93%.
- Free cash flow increased to $93 million, led by a 160% rise in cash from operations and a decline in capital spending.
- The company announced a share buyback program of up to $1.5 billion over the next two years.
(Figures in millions, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$771 |
$670 |
15.1% |
Net Profit |
$121 |
$80 |
51.3% |
EPS |
$0.13 |
$0.08 |
62.5% |
Diluted Shares |
944 |
943 |
0.1% |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
71.3% |
73.1% |
(1.8) |
Operating Margin |
20.4% |
16.9% |
3.5 |
Net Margin |
15.7% |
11.9% |
3.8 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$346 |
$151 |
129.1% |
Accounts Rec. |
$680 |
$620 |
9.7% |
Inventory |
$619 |
$557 |
11.1% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable |
$419 |
$452 |
(7.3%) |
Long-Term Debt |
$15 |
$211 |
(92.9%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Cash From Ops. |
$130 |
$50 |
160.0% |
Capital Expenditures |
$37 |
$47 |
(21.3%) |
Free Cash Flow |
$93 |
$3 |
3000.0% |
Find out why Fools always follow the money.
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