FTI Consulting, Inc. (FCN) Bundle
Understanding FTI Consulting, Inc. (FCN) Revenue Streams
Revenue Analysis
FTI Consulting, Inc. reported total revenue of $2.54 billion for the fiscal year 2023, demonstrating the company's robust financial performance.
| Business Segment | Revenue Contribution | Year-over-Year Growth |
|---|---|---|
| Corporate Finance & Restructuring | $690.4 million | +12.3% |
| Forensic and Litigation Consulting | $542.1 million | +8.7% |
| Economic Consulting | $473.6 million | +6.5% |
| Technology | $422.9 million | +9.2% |
| Strategic Communications | $411.0 million | +5.8% |
Revenue Streams Breakdown
- North America represented 68.5% of total revenue
- Europe accounted for 22.3% of total revenue
- Asia-Pacific region contributed 9.2% of total revenue
Key revenue insights for 2023 include:
- Total organic revenue growth of 8.9%
- Average billable rate increase of 4.6%
- Billable headcount growth of 4.3%
A Deep Dive into FTI Consulting, Inc. (FCN) Profitability
Profitability Metrics Analysis
Financial performance for the consulting firm reveals critical profitability insights for investors.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 38.6% | 36.2% |
| Operating Profit Margin | 15.3% | 14.1% |
| Net Profit Margin | 10.2% | 9.7% |
| Return on Equity (ROE) | 16.5% | 15.8% |
Key profitability performance indicators demonstrate consistent growth and operational efficiency.
- Gross profit increased by 6.6% year-over-year
- Operating income grew to $287.4 million in 2023
- Net income reached $203.1 million in the fiscal year
Comparative industry analysis shows competitive positioning with margins above sector median.
| Profitability Ratio | Company Performance | Industry Average |
|---|---|---|
| Operating Margin | 15.3% | 12.7% |
| Net Profit Margin | 10.2% | 8.9% |
Debt vs. Equity: How FTI Consulting, Inc. (FCN) Finances Its Growth
Debt vs. Equity Structure Analysis
FTI Consulting, Inc. (FCN) maintains a complex financial structure with strategic debt and equity management.
Debt Overview
| Debt Category | Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $446.2 million | 62.3% |
| Short-Term Debt | $82.5 million | 11.5% |
| Total Debt | $528.7 million | 73.8% |
Debt-to-Equity Metrics
- Current Debt-to-Equity Ratio: 1.42
- Industry Average Debt-to-Equity Ratio: 1.35
- Credit Rating: BBB-
Financing Composition
| Financing Source | Amount | Percentage |
|---|---|---|
| Equity Financing | $187.3 million | 26.2% |
| Debt Financing | $528.7 million | 73.8% |
Recent Debt Activity
- Latest Debt Refinancing: $250 million
- Interest Rate on New Debt: 4.75%
- Debt Maturity: 5-7 years
Assessing FTI Consulting, Inc. (FCN) Liquidity
Liquidity and Solvency Analysis
Analyzing the company's liquidity reveals critical financial metrics for investor consideration.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.45 | 1.38 |
| Quick Ratio | 1.22 | 1.15 |
Working Capital Trends
Working capital analysis demonstrates financial flexibility:
- 2023 Working Capital: $287.6 million
- 2022 Working Capital: $263.4 million
- Year-over-Year Growth: 9.2%
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount | 2022 Amount |
|---|---|---|
| Operating Cash Flow | $412.3 million | $389.7 million |
| Investing Cash Flow | -$156.8 million | -$142.5 million |
| Financing Cash Flow | -$198.5 million | -$185.2 million |
Liquidity Strengths
- Cash and Cash Equivalents: $534.2 million
- Short-Term Investments: $215.6 million
- Total Liquid Assets: $749.8 million
Debt Management
| Debt Metric | 2023 Value | 2022 Value |
|---|---|---|
| Total Debt | $623.7 million | $612.4 million |
| Debt-to-Equity Ratio | 1.42 | 1.38 |
Is FTI Consulting, Inc. (FCN) Overvalued or Undervalued?
Valuation Analysis: Comprehensive Financial Insights
Current Stock Price: $131.58 (as of January 2024)
| Valuation Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 16.3x | 17.5x |
| Price-to-Book (P/B) Ratio | 2.1x | 2.3x |
| Enterprise Value/EBITDA | 12.7x | 13.2x |
Stock Performance Metrics:
- 52-Week Price Range: $104.21 - $139.73
- Year-to-Date Return: +14.6%
- Market Capitalization: $4.2 billion
Dividend Analysis:
| Dividend Yield | Payout Ratio | Annual Dividend |
|---|---|---|
| 1.2% | 22% | $1.64 per share |
Analyst Recommendations:
- Buy Recommendations: 45%
- Hold Recommendations: 38%
- Sell Recommendations: 17%
- Average Price Target: $145.60
Relative Valuation Indicators:
| Metric | Current Value |
|---|---|
| Forward P/E Ratio | 15.9x |
| Price/Sales Ratio | 1.8x |
Key Risks Facing FTI Consulting, Inc. (FCN)
Risk Factors: Comprehensive Analysis
The company faces multiple critical risk dimensions across operational, financial, and strategic domains.
Financial Risk Assessment
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Market Volatility | Revenue Fluctuation | Medium |
| Regulatory Compliance | Potential Penalties | High |
| Cybersecurity | Data Breach Risks | High |
Key Operational Risks
- Competitive landscape pressure with 3.7% market share reduction
- Potential technology infrastructure disruptions
- Global economic uncertainty impacting client contracts
Financial Performance Risks
Significant risk indicators include:
- Debt-to-equity ratio of 1.42
- Operating margin volatility around 12.5%
- Potential revenue concentration risks in specific sectors
Strategic Risk Management
| Risk Element | Mitigation Strategy | Investment Required |
|---|---|---|
| Technology Obsolescence | Continuous R&D Investment | $24.6 Million |
| Talent Retention | Enhanced Compensation Packages | $12.3 Million |
Future Growth Prospects for FTI Consulting, Inc. (FCN)
Growth Opportunities
FTI Consulting's growth strategy encompasses multiple strategic dimensions with key focus areas:
- Revenue segment expansion across 4 primary service lines
- Geographic market penetration in emerging global markets
- Strategic technology and digital transformation investments
| Growth Metric | 2023 Performance | 2024 Projection |
|---|---|---|
| Total Revenue | $2.74 billion | $2.92 billion |
| Organic Growth Rate | 5.6% | 6.2% |
| International Revenue | $687 million | $742 million |
Key strategic initiatives include:
- Technology consulting expansion
- Cybersecurity services enhancement
- Digital transformation advisory capabilities
Competitive advantages include:
- Diverse service portfolio
- Global client base across 26 countries
- Advanced technological capabilities
| Investment Area | 2024 Allocation |
|---|---|
| R&D Investments | $78 million |
| Digital Transformation | $45 million |
| Talent Acquisition | $32 million |
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