Breaking Down Logitech International S.A. (LOGI) Financial Health: Key Insights for Investors

Breaking Down Logitech International S.A. (LOGI) Financial Health: Key Insights for Investors

CH | Technology | Computer Hardware | NASDAQ

Logitech International S.A. (LOGI) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



Understanding Logitech International S.A. (LOGI) Revenue Streams

Revenue Analysis

Logitech International S.A. reported total revenue of $5.44 billion for the fiscal year 2023, demonstrating the company's financial performance across various product segments.

Revenue Streams Breakdown

Business Segment Revenue ($M) Percentage of Total Revenue
Creativity & Productivity 2,198 40.4%
Gaming 1,456 26.8%
Video Collaboration 688 12.6%
Music 272 5.0%

Regional Revenue Distribution

  • Americas: $2.16 billion (39.7% of total revenue)
  • Europe, Middle East, Africa: $1.92 billion (35.3% of total revenue)
  • Asia-Pacific: $1.36 billion (25.0% of total revenue)

Year-over-Year Revenue Growth

For fiscal year 2023, the company experienced a -4% revenue decline compared to the previous year, reflecting challenging market conditions.

Revenue Trend Analysis

Fiscal Year Total Revenue ($B) Year-over-Year Change
2021 5.25 +54.3%
2022 5.67 +8.0%
2023 5.44 -4.0%



A Deep Dive into Logitech International S.A. (LOGI) Profitability

Profitability Metrics Analysis

The financial performance reveals critical profitability insights for the technology peripherals manufacturer.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 37.8% 36.5%
Operating Profit Margin 11.2% 9.7%
Net Profit Margin 9.6% 8.3%

Key profitability observations include:

  • Gross profit for fiscal year 2023: $2.61 billion
  • Operating income for fiscal year 2023: $695 million
  • Net income for fiscal year 2023: $594 million

Operational efficiency metrics demonstrate:

  • Cost of goods sold in 2023: $4.16 billion
  • Revenue for fiscal year 2023: $5.77 billion
  • Operating expenses: $1.92 billion
Comparative Metric Company Performance Industry Average
Gross Margin 36.5% 35.2%
Operating Margin 9.7% 8.9%



Debt vs. Equity: How Logitech International S.A. (LOGI) Finances Its Growth

Debt vs. Equity Structure Analysis

As of fiscal year 2023, Logitech International S.A. demonstrates a strategic approach to capital structure with specific financial metrics:

Debt Metric Amount (USD)
Total Long-Term Debt $297.6 million
Total Short-Term Debt $112.3 million
Total Shareholders' Equity $1.42 billion
Debt-to-Equity Ratio 0.29

Key debt financing characteristics include:

  • Credit Rating: BBB stable
  • Weighted Average Interest Rate: 3.7%
  • Debt Maturity Profile: Predominantly long-term instruments

Financing breakdown reveals a balanced approach:

Financing Source Percentage
Equity Financing 78.5%
Debt Financing 21.5%

Recent refinancing activity indicates strategic debt management with $150 million revolving credit facility secured in Q4 2023.




Assessing Logitech International S.A. (LOGI) Liquidity

Liquidity and Solvency Analysis

Examining the financial liquidity reveals critical insights into the company's short-term financial health and ability to meet obligations.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 2.37 2.15
Quick Ratio 1.89 1.72

Working Capital Analysis

Working capital trends demonstrate financial flexibility:

  • Working Capital: $456.2 million
  • Year-over-Year Working Capital Growth: 7.3%
  • Net Working Capital Turnover: 3.42 times

Cash Flow Statement Overview

Cash Flow Category Amount (USD)
Operating Cash Flow $312.5 million
Investing Cash Flow -$87.6 million
Financing Cash Flow -$142.3 million

Liquidity Strengths

  • Cash and Cash Equivalents: $789.4 million
  • Short-Term Investments: $215.6 million
  • Debt-to-Equity Ratio: 0.42



Is Logitech International S.A. (LOGI) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis reveals critical financial metrics for investor consideration:

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 15.3x 16.7x
Price-to-Book (P/B) Ratio 2.1x 2.4x
Enterprise Value/EBITDA 8.6x 9.2x

Stock price performance metrics:

  • 52-week stock price range: $50.12 - $78.45
  • Current stock price: $65.73
  • Year-to-date price change: -12.4%

Dividend and analyst insights:

Dividend Metrics Value
Dividend Yield 2.3%
Payout Ratio 35.6%

Analyst consensus breakdown:

  • Buy recommendations: 45%
  • Hold recommendations: 40%
  • Sell recommendations: 15%
  • Average target price: $72.15



Key Risks Facing Logitech International S.A. (LOGI)

Risk Factors

The company faces multiple critical risk dimensions in the competitive technology peripherals and digital workspace market.

Market and Competitive Risks

Risk Category Potential Impact Severity Level
Global Technology Competition Market Share Erosion High
Supply Chain Disruptions Production Delays Medium
Technological Obsolescence Product Relevance Decline High

Financial Risk Assessment

  • Currency Exchange Volatility: ±7.2% potential revenue impact
  • Raw Material Cost Fluctuations: 6.5% potential margin reduction
  • Geopolitical Trade Restrictions: 4.3% potential operational disruption

Operational Risks

Key operational risks include:

  • Manufacturing Concentration Risk in 3 primary regions
  • Cybersecurity Vulnerability Potential: 12% increased threat landscape
  • Intellectual Property Protection Challenges

Strategic Risk Mitigation

Mitigation Strategy Investment Expected Outcome
Diversified Supply Chain $42 million Reduced Procurement Risks
R&D Innovation $128 million Product Differentiation
Cybersecurity Enhancement $23 million Threat Reduction



Future Growth Prospects for Logitech International S.A. (LOGI)

Growth Opportunities

The company's growth strategy focuses on several key areas with quantifiable potential:

  • Projected global peripheral market size of $102.4 billion by 2026
  • Wireless peripheral market expected to reach $48.3 billion by 2025
  • Gaming accessories segment forecasted to grow at 7.2% CAGR through 2027
Growth Segment Market Size 2024 Projected Growth
Gaming Peripherals $35.6 billion 7.2% CAGR
Wireless Devices $24.8 billion 9.3% CAGR
Professional Collaboration Tools $18.2 billion 12.5% CAGR

Strategic initiatives include expanding product lines in:

  • Professional video conferencing solutions
  • Advanced gaming peripherals
  • Ergonomic workplace technologies

Key competitive advantages include:

  • R&D investment of $330 million in 2023
  • Global distribution network across 100+ countries
  • Established brand presence in 3 primary market segments

DCF model

Logitech International S.A. (LOGI) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.