On Nov. 15, multinational services and manufacturing giant (and Motley Fool Inside Value pick) Tyco International (NYSE:TYC) released earnings for the 2006 fiscal year ended Sept. 29.

  • Net profits include $0.12 per share of net pro forma gains in the fourth quarter, if you want to compare results to analyst forecasts on an apples-to-apples basis. Items include legal settlements, tax gains, and various restructuring charges.

  • A lower debt load and higher interest on investments widened net margins despite lower operating efficiency.

  • Most of your fellow Fools seem to appreciate this company, judging by our CAPS community. One hundred bullish ratings, 25 of whom are all-star players, vs. 15 bears with no top performers among them, make this a three-star stock. Add your own insights here.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

FY 2006

FY 2005

Change

Sales

$40,920

$40,960.0

$39,305.0

4.2%

Net Profit

--

$4,075.0

$3,057.0

33.3%

EPS

$1.82

$1.96

$1.41

39%

Diluted Shares

--

2084.0

2167.0

(3.8%)

*GAAP earnings from continuing operations, excluding the divested printed circuit boards division.

Get back to basics with a look at the income statement.

Margin Checkup

FY 2006

FY 2005

Change*

Gross Margin

33.39%

34.94%

(1.55)

Operating Margin

13.36%

14.74%

(1.38)

Net Margin

9.95%

7.78%

2.17

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

FY 2006

FY 2005

Change

Cash + ST Invest.

$2,926.0

$3,212.0

(8.9%)

Accounts Rec.

$7,064.0

$6,657.0

6.1%

Inventory

$4,794.0

$4,144.0

15.7%



Liabilities

FY 2006

FY 2005

Change

Accounts Payable

$3,527.0

$3,019.0

16.8%

Long-Term Debt

$10,173.0

$12,529.0

(18.8%)

*Including current portions of long-term debt -- $808 million in the 2006 period and $1.9 billion in 2005.

Learn the ways of the balance sheet.

Cash Flow Highlights

FY 2006

FY 2005

Change

Cash From Ops.

$5,594.0

$6,154.0

(9.1%)

Capital Expenditures

$1,569.0

$1,354.0

15.9%

Free Cash Flow

$4,025.0

$4,800.0

(16.1%)



Find out why Fools always follow the money.

Cash Conversion Checkup

FY 2006

FY 2005

Change

Days in Inventory

59.8

59.4

0.4

Days in Receivables

61.1

59.2

1.9

Days Payables Outstanding

43.8

40.3

3.5

Cash Conversion Cycle

77.1

78.3

(1.2)



Read up on cash conversion metrics.

Related Companies:

  • TTM Technologies (NASDAQ:TTMI)
  • Bristol-Myers Squibb (NYSE:BMY)
  • Emerson Electric (NYSE:EMR)
  • Kimberly-Clark (NYSE:KMB)
  • Ingersoll-Rand (NYSE:IR)
  • United Technologies (NYSE:UTX)

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.

TTM Technologies is a Motley Fool Stock Advisor selection. Find more of Tom and David Gardner's best investing ideas with a free 30-day trial .

At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here .