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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Price to Operating Profit (P/OP) since 2005
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Free Cash Flow to The Firm (FCFF)
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
The analysis of the financial data reveals several notable trends in the cash flow metrics over the observed periods.
- Net Cash Provided by Operating Activities
- This figure shows significant volatility over the years. Starting at approximately 5.05 billion US dollars in 2019, it declined sharply to around 1.60 billion in 2020. This drop could be indicative of operational disruptions or other external factors impacting the business during that year. Subsequently, the cash generated from operating activities rebounded strongly in 2021 to nearly 6.0 billion, followed by a decline to about 4.40 billion in 2022. The upward trend resumed in 2023 and 2024, reaching approximately 6.01 billion and 6.10 billion respectively. Overall, the trend suggests recovery and growth in operational cash flows after the dip in 2020, with a positive trajectory in recent years.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow exhibited a different pattern. The value decreased drastically from roughly 3.48 billion in 2019 to 429 million in 2020, representing a substantial contraction. There was a strong recovery in 2021 with FCFF climbing to about 4.91 billion, followed by a decrease to approximately 2.92 billion in 2022. The flow increased again in 2023, reaching around 4.08 billion, but declined in 2024 to roughly 3.75 billion. The fluctuations imply variability in the company’s investment and operating cash generation efficiency. Although free cash flow has experienced wide swings, the figures generally indicate attempts at maintaining positive cash available after capital expenditures, with some uncertainty in the latest periods.
In summary, while both the operating cash flow and free cash flow demonstrate marked fluctuations, the company shows resilience with recoveries following downturns. The overall upward movement in net cash from operations in recent years is a positive sign, though the free cash flow's volatility warrants attention for future cash management and investment decisions.
Interest Paid, Net of Tax
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
2 2024 Calculation
Cash paid during the period for interest, net of capitalized interest, tax = Cash paid during the period for interest, net of capitalized interest × EITR
= × =
The financial data reveals notable trends over the six-year period ending in 2024. The effective income tax rate (EITR) demonstrates a consistent upward trajectory, rising from 19.5% in 2019 to 24.3% in 2024. This gradual increase in tax rate suggests a growing tax burden relative to the company's pre-tax income, which may impact net profitability if other factors remain constant.
Regarding cash paid for interest, net of capitalized interest and tax, the figures indicate a generally increasing pattern, from approximately $241 million in 2019 to over $432 million in 2024. The largest year-over-year increase occurred between 2019 and 2020, after which the amount continued to rise but with some fluctuations. The payment peaked in 2021 at about $393 million, dipped slightly in 2022 to around $368 million, then resumed growth through 2023 and 2024, reaching the highest value in the observed period.
- Effective Income Tax Rate (EITR)
- Increased steadily from 19.5% in 2019 to 24.3% in 2024, reflecting a consistent rise each year.
- Cash Paid for Interest, Net
- Increased from $241 million in 2019 to $432 million in 2024, with a peak near $393 million in 2021, a slight decline in 2022, and subsequent growth thereafter.
Enterprise Value to FCFF Ratio, Current
Selected Financial Data (US$ in thousands) | |
Enterprise value (EV) | |
Free cash flow to the firm (FCFF) | |
Valuation Ratio | |
EV/FCFF | |
Benchmarks | |
EV/FCFF, Competitors1 | |
Airbnb Inc. | |
Booking Holdings Inc. | |
Chipotle Mexican Grill Inc. | |
McDonald’s Corp. | |
EV/FCFF, Sector | |
Consumer Services | |
EV/FCFF, Industry | |
Consumer Discretionary |
Based on: 10-K (reporting date: 2024-09-29).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Enterprise value (EV)1 | |||||||
Free cash flow to the firm (FCFF)2 | |||||||
Valuation Ratio | |||||||
EV/FCFF3 | |||||||
Benchmarks | |||||||
EV/FCFF, Competitors4 | |||||||
Airbnb Inc. | |||||||
Booking Holdings Inc. | |||||||
Chipotle Mexican Grill Inc. | |||||||
McDonald’s Corp. | |||||||
EV/FCFF, Sector | |||||||
Consumer Services | |||||||
EV/FCFF, Industry | |||||||
Consumer Discretionary |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows an overall upward trend from 2019 through 2021, increasing from approximately $107.9 billion to nearly $138.0 billion. However, in 2022, there is a notable decline to about $124.1 billion. This is followed by a slight recovery in 2023, reaching around $131.4 billion, before decreasing again to $123.4 billion in 2024. The fluctuations in EV over the six-year period indicate periods of market revaluation or changes in the company's capital structure.
- Free Cash Flow to the Firm (FCFF)
- The FCFF exhibits significant variability over the years. Starting at approximately $3.48 billion in 2019, there is a sharp decline in 2020 to around $0.43 billion, likely reflecting adverse economic conditions or operational challenges during that period. In 2021, the FCFF rebounds strongly to about $4.91 billion, the highest in the observed timeframe. The cash flow then declines again in 2022 to $2.92 billion but improves in 2023 to $4.08 billion before slightly decreasing to $3.75 billion in 2024. These fluctuations suggest potential impacts from external factors with some recovery and stabilization in the latter years.
- EV/FCFF Ratio
- The EV/FCFF ratio, a valuation metric, has shown considerable volatility. It is relatively moderate at approximately 31.0 in 2019, then spikes dramatically in 2020 to about 282.0, likely due to the significant drop in FCFF combined with the increasing enterprise value. The ratio declines sharply in 2021 to roughly 28.1, indicating a more favorable valuation relative to cash flow. In 2022, the ratio increases again to 42.4, reflecting the decrease in FCFF and EV. It then decreases gradually to 32.2 in 2023 and remains stable around 32.9 in 2024. This pattern highlights sensitivity in valuation metrics to cash flow changes and suggests cautious investor sentiment during periods of operational stress.
- Summary
- Overall, the data reflects volatility in both enterprise value and free cash flows over the six-year period, with notable declines during 2020 indicative of challenging conditions affecting the firm's financial performance. Subsequent recovery in FCFF contrasts with fluctuating enterprise values, resulting in significant swings in valuation multiples. Recent years show signs of stabilization in valuation ratios, suggesting adjustments to market conditions and improved operational performance. Careful monitoring of cash flow generation and capital market perceptions remains essential for comprehensive financial analysis.