,
4 tweets,
2 min read
Read on Twitter
Here's my crack at a "best" of distributors list.
Tried to compile margins and returns. For ROIC, I standardized NOPAT using 25% tax rate across the board, so it won't foot to reported numbers. For IC I used WC+PPE.
Impressive group. Had never heard of DPLM, but ranks well.
Tried to compile margins and returns. For ROIC, I standardized NOPAT using 25% tax rate across the board, so it won't foot to reported numbers. For IC I used WC+PPE.
Impressive group. Had never heard of DPLM, but ranks well.
I looked at most in here, some I excluded because they didn't look enough like a distributor to be fair comparison. Names like GWW, MSM, SYY, ORLY, CDW didn't make the cut.
The high capex to sales appears rewarded in this group because the returns on invested capital are so high, and seemingly persistent.
Added Monotaro, which has insane economic profile. Dethroned HDS for highest ROIC.
People ask why exclude intangibles: a) ROA captures it b) pt of exercise is to look at quality of underlying biz, not prices mgmt paid c) added intangibles as % of assets for comparison
People ask why exclude intangibles: a) ROA captures it b) pt of exercise is to look at quality of underlying biz, not prices mgmt paid c) added intangibles as % of assets for comparison
