$Icon PLC (ICLR.US)$Revenue grew rapidly for 4 years other t...
$Icon PLC(ICLR.US$Revenue grew rapidly for 4 years other than a 0.3% decline in 2020, with an average 5-year growth rate of 34.5%. Operating profit grew rapidly for 4 years other than a 6.55% decline in 2020. The 5-year average growth rate was 20%. Net profit fell sharply by 54% in 2021 due to restructuring and mergers and acquisitions, and the 5-year average growth rate was 12.4%.
There is a very bad trend in the income statement. Recently, interest expenses have increased rapidly, reaching 230 million in 2022, accounting for 26% of operating profit, which is a heavy burden.
In 2023Q1, revenue increased by 4%, operating profit increased by 27.5%, and net profit increased by only 4.2% due to the sharp increase in interest charges.
The balance sheet shows that the company borrowed $5.4 billion to carry out major acquisitions in 2021, and goodwill and other intangible assets grew from $1 billion to 13.8 billion, far exceeding net assets.
Accounts receivable increased by 730 million to $2.8 billion in 2022, exceeding that year's net profit of 505 million yuan, accounting for 36% of that year's revenue. The ratio and growth rate were extremely unhealthy. Accounts receivable in 2023Q1 increased by another 180 million yuan, exceeding the net profit of 120 million yuan in the quarter
Currently, the price-earnings ratio is 40.2, and the price-earnings ratio TTM has dropped slightly to 39.8. You can wait a few more financial reports to see the effects of the acquisition and whether accounts receivable have improved before judging.
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