Financial Analysis for CW
Revenue Analysis
Total and Operating Revenue: CW’s total revenue showed a decrease from $785.791 million in 2023-12-31 to $713.167 million in 2024-03-31. This indicates a contraction in operating revenue over the period.
Gross Profit Margin: The gross profit also followed a decline from $304.729 million in 2023-12-31 to $253.755 million in 2024-03-31, suggesting diminishing profitability or increased costs of goods sold.
Cost Management
Cost of Revenue: There was a subtle decrease in cost of revenue from $481.062 million at 2023-12-31 to $459.412 million at 2024-03-31.
Operating Expense: Operating expenses mirrored this decrease, moving from $144.036 million to $153.794 million in the same period, showing increased operational spending which could be a strategic decision or inflationary effects.
Total Expenses: Total expenses decreased from $625.098 million to $613.206 million.
Profitability Analysis
EBITDA, Operating, and Pretax Income: EBITDA decreased from $197.146 million to $136.552 million. Operating income saw a significant drop from $160.693 million to $99.961 million. Pretax income also decreased from $156.849 million to $98.999 million, indicating decreased operational efficiency and profitability.
Net Income Metrics: Net income showed a sharp decline from $119.886 million to $76.495 million, confirming the overall reduced profitability observed in other indicators.
Cash Flow Indicators
Reconciled Depreciation: This increased slightly from $29.336 million to $26.983 million, suggesting continued investment in capital assets.
Interest Expense: Interest expenses remained relatively stable around $10.5 million, indicating consistent debt levels.
Taxation
Tax Rate and Tax Provision: The Tax Rate for Calculations had a minor variance moving from 0.23566 to 0.227315. The tax provision decreased from $36.963 million to $22.504 million.
Tax Effect of Unusual Items: Consistently recorded at 0.0, indicating no significant one-time fiscal events impacting the tax situation.
Shareholder Metrics
Earnings Per Share (EPS): Both Diluted and Basic EPS saw a decrease from 3.11 and 3.14, respectively, to 1.99 and 2.00 which may influence investor’s perception of company profitability.
Average Shares: There were marginal changes in both diluted and basic average shares indicating stable shareholding structure.
Net Income Available to Common Stockholders: Net income available to common stockholders decreased in line with overall profitability metrics.
Conclusion
The financial performance of CW has demonstrated a downward trend in terms of revenues, profitability, and net income over the observed period, despite stable cash flow indicators and consistent shareholder metrics. Controlled costs and slight adjustments in operational expenses show strategic adjustments that are not yet reflecting a return to higher profitability. CW should potentially reassess operational efficiencies, pricing strategies, or explore new market opportunities to reverse the negative trends.
Appendices
See attached data tables and calculations for detailed figures and trends.