Delta / Southwest
Used Debt as a flex account
Delta / Southwest
Important factors
-LT debt, PPE, Inventory / COGS
Eagle / Vulcan
Public - infrastructure (bridges, schools, roads)
Private - residential / corporate
Eagle / Vulcan
Risk factors
-government regulation
-cyclical
-contracts
-demand exceeds ability to provide
Eagle / Vulcan
Restatements:
-Operating lease - 2% immaterial
-Inventory - LIFO to FIFO - .53% difference - immaterial
Eagle / Vulcan
Ratio differences
- size of company DOES NOT MATTER
-pays out high % of income as dividends
Kaman / Spirit
Aerospace industry:
- One sells small parts (materials) to form big part
- one sells big finished parts
Kaman / Spirit
Glotz disagreed with deferred income tax explanation
MK / Coach
capitalized leases but did not include in valuation
Walmart / Amazon
-capital leases
-equalize fixed assets / inventory
-change fiscal year to calendar end
Weyerhaeuser / Rayoneir
timber and wood market
-REIT - where 75% of assets and income invested in real estate, cash, us treasury
Ingles / SFS
turnover for ingles is longer since they are involved in more than grocery business. they expanded into gas, hospital, etc.