On Jan.18, Swiss computer peripherals and electronics expert Logitech International (NASDAQ:LOGI) released third-quarter 2007 earnings for the period ended Dec. 31, 2006.
- Logitech is one of a few companies riding the coattails of Apple (NASDAQ:AAPL) and its phenomenally successful iPod entertainment devices. Logitech's audio segment, which sells plenty of iPod accessories, grew sales by 27%.
- Logitech CEO Guerrino De Luca was proud of his company's cash management in the quarter, and deservedly so -- the cash conversion cycle shortened by more than a week.
- Try as I might, I can't find anything to complain about here. Sales and margins are up, cash flows and owner earnings are growing faster than net income, inventories are going down, and the balance sheet is stronger than ever. No wonder it's a four-star CAPS stock.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change | |
|---|---|---|---|
|
Sales |
$658.5 |
$573.9 |
14.8% |
|
Net Profit |
$94.3 |
$71.3 |
32.2% |
|
EPS |
$0.49 |
$0.36 |
36.1% |
|
Diluted Shares |
191.1 |
200.4 |
(4.6%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
36.2% |
32.3% |
3.9 |
|
Operating Margin |
15.1% |
14.1% |
1.1 |
|
Net Margin |
14.3% |
12.4% |
1.9 |
Margins are the earnings engine. See how they work.
Management Effectiveness
|
Q3 2007 |
Q3 2006 |
Change* | |
|---|---|---|---|
|
Return on Average Assets |
29.0% |
24.9% |
4.2 |
|
Return on Average Equity |
48.1% |
42.2% |
5.9 |
See how management puts its financial tools to work.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$368.0 |
$276.9 |
32.9% |
|
Accounts Rec. |
$416.2 |
$370.0 |
12.5% |
|
Inventory |
$234.9 |
$257.6 |
(8.8%) |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$293.1 |
$242.6 |
20.8% |
|
Long-Term Debt |
$0.0 |
$0.0 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2007 |
Q3 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$171.0 |
$45.3 |
277.4% |
|
Capital Expenditures |
$10.6 |
$13.5 |
(21.8%) |
|
Free Cash Flow |
$160.4 |
$31.8 |
404.9% |
|
$95.1 |
$66.7 |
42.6% |
Find out why Fools always follow the money.
Cash Conversion Checkup
|
Q3 2007 |
Q3 2006 |
Change | |
|---|---|---|---|
|
Days in Inventory |
52.9 |
60.8 |
(7.9) |
|
Days in Receivables |
55.6 |
52.3 |
3.2 |
|
Days Payables Outstanding |
61.3 |
56.3 |
5.0 |
|
Cash Conversion Cycle |
47.2 |
56.8 |
(9.7) |
Read up on cash conversion metrics.
Related Companies:
- Microsoft (NASDAQ:MSFT)
- Harman International Industries (NYSE:HAR)
- Nam Tai Electronics (NYSE:NTE)
- Mad Catz Interactive (AMEX:MCZ)
- Plantronics (NYSE:PLT)
Related Foolishness:
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At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.
