$Allison Transmission (ALSN.US)$It is an American company th...

Gross margin fluctuated to 47.7% over the past 5 years, and the return on net assets was very high. Except for 2020, which was as low as 39%, it was between 57% and 95% for the rest of the 4 years.

In the past 5 years, with the exception of a 23% drop in 2020, revenue has basically maintained growth. The overall increase in 5 years was minimal. Operating profit plummeted 40% in 2020, recovered only slightly in 2021, and plummeted 51% in 2020, and partially recovered in 2021.

In the first two quarters of 2022, revenue increased by 12.6%, operating profit increased by 12.1%, and net profit increased by 9.1%.

The income statement shows that interest expenses in 2021 accounted for 17% of operating profit. The burden is not low. Other income categories account for a very low proportion, and the income statement is relatively clean.

The balance ratio has fluctuated at a high level of 83.6% over the past 5 years. Accounts receivable and inventory levels have increased, and the growth rate and ratio are within the normal range.

Goodwill reached $2.1 billion, accounting for 280% of net assets of $749 million, and long-term loans of $2,504 million, accounting for 334% of net assets. Note that net assets are actually based on goodwill, and the actual leverage ratio can no longer be calculated.

Currently, the price-earnings ratio is 8.1, and the price-earnings ratio is TTM 7.2. Considering the excessive leverage ratio, let's wait until the debt is reduced.