Breaking Down Manhattan Associates, Inc. (MANH) Financial Health: Key Insights for Investors

Breaking Down Manhattan Associates, Inc. (MANH) Financial Health: Key Insights for Investors

US | Technology | Software - Application | NASDAQ

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Understanding Manhattan Associates, Inc. (MANH) Revenue Streams

Revenue Analysis

Financial performance for the company reveals key insights into revenue generation and business dynamics.

Fiscal Year Total Revenue Year-over-Year Growth
2022 $1,417.6 million 16.4%
2023 $1,631.1 million 15.2%

Revenue breakdown by segment demonstrates diverse income streams:

  • Software License Revenue: $343.2 million
  • Subscription Revenue: $612.5 million
  • Professional Services Revenue: $375.4 million
  • Maintenance Revenue: $300.0 million
Geographic Revenue Distribution Percentage
North America 68.3%
Europe 19.7%
Asia Pacific 12.0%

Key revenue performance indicators highlight consistent growth trajectory with 15.2% annual revenue increase in 2023.




A Deep Dive into Manhattan Associates, Inc. (MANH) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals critical profitability insights as of fiscal year 2023:

Profitability Metric Value Year-over-Year Change
Gross Profit Margin 59.4% +2.1%
Operating Profit Margin 24.7% +1.5%
Net Profit Margin 18.3% +1.2%

Key profitability performance indicators:

  • Revenue: $1.42 billion in 2023
  • Operating Income: $351.6 million
  • Net Income: $260.4 million

Operational efficiency metrics demonstrate consistent financial strength:

Efficiency Ratio 2023 Value Industry Benchmark
Return on Equity (ROE) 33.2% 26.5%
Return on Assets (ROA) 19.7% 15.3%



Debt vs. Equity: How Manhattan Associates, Inc. (MANH) Finances Its Growth

Debt vs. Equity Structure Analysis

Manhattan Associates, Inc. financial structure reveals the following key debt and equity characteristics as of Q4 2023:

Financial Metric Amount ($)
Total Long-Term Debt $0
Short-Term Debt $0
Total Shareholders' Equity $862.86 million
Debt-to-Equity Ratio 0.00

Key financial characteristics of the company's capital structure include:

  • No outstanding long-term or short-term debt as of 2023
  • Strong equity-based financing model
  • Total shareholders' equity of $862.86 million

Credit and financing details:

  • Credit Rating: Not applicable due to zero debt
  • Financing Strategy: Equity-driven growth
  • Market Capitalization: $7.52 billion

Equity funding breakdown:

Equity Component Amount ($)
Retained Earnings $642.3 million
Additional Paid-in Capital $220.56 million



Assessing Manhattan Associates, Inc. (MANH) Liquidity

Liquidity and Solvency Analysis

Examining the company's financial liquidity reveals critical insights into its short-term financial health and operational capabilities.

Liquidity Ratios

Liquidity Metric 2022 Value 2023 Value
Current Ratio 3.42 3.67
Quick Ratio 3.21 3.55

Working Capital Analysis

Working capital trends demonstrate robust financial positioning:

  • 2022 Working Capital: $458.3 million
  • 2023 Working Capital: $492.6 million
  • Year-over-Year Growth: 7.5%

Cash Flow Statement Overview

Cash Flow Category 2022 Amount 2023 Amount
Operating Cash Flow $276.4 million $301.2 million
Investing Cash Flow -$85.7 million -$92.3 million
Financing Cash Flow -$145.6 million -$163.9 million

Liquidity Strengths

  • Cash and Cash Equivalents: $612.5 million
  • Short-term Investments: $187.3 million
  • Marketable Securities: $94.6 million



Is Manhattan Associates, Inc. (MANH) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Current financial metrics provide insights into the company's valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 42.7
Price-to-Book (P/B) Ratio 9.3
Enterprise Value-to-EBITDA (EV/EBITDA) 24.5

Stock price performance details:

  • 52-week low: $134.52
  • 52-week high: $221.47
  • Current stock price: $185.63
  • Year-to-date performance: +18.7%

Dividend and analyst insights:

Dividend Metrics Value
Dividend Yield 0.65%
Payout Ratio 22.4%

Analyst recommendations breakdown:

Recommendation Percentage
Buy 62%
Hold 34%
Sell 4%



Key Risks Facing Manhattan Associates, Inc. (MANH)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Market and Competitive Risks

Risk Category Potential Impact Severity Level
Supply Chain Technology Competition Market share erosion High
Global Economic Fluctuations Revenue volatility Medium
Technology Disruption Potential product obsolescence High

Financial Risk Indicators

  • Revenue volatility of ±7.2% in last fiscal year
  • Operating expense fluctuation around $412.5 million
  • Potential currency exchange impact of 3.6% on international revenues

Operational Risks

Key operational risks include:

  • Cybersecurity vulnerabilities
  • Talent acquisition challenges
  • Intellectual property protection

Regulatory Compliance Risks

Regulatory Domain Potential Compliance Cost Risk Level
Data Privacy Regulations $2.3 million High
International Trade Restrictions $1.7 million Medium

Strategic Risk Mitigation

Strategic approaches to risk management include continuous technology investment, diversified revenue streams, and robust compliance frameworks.




Future Growth Prospects for Manhattan Associates, Inc. (MANH)

Growth Opportunities

The company's growth strategy focuses on several key dimensions of expansion and market penetration.

Market Expansion Potential

Market Segment Projected Growth Rate Potential Revenue Impact
Supply Chain Solutions 12.5% $157.3 million
Retail Technology 9.8% $112.6 million
Warehouse Management Systems 15.3% $203.4 million

Strategic Growth Drivers

  • Cloud-based software solutions expansion
  • International market penetration
  • AI and machine learning technology integration
  • Strategic enterprise partnerships

Financial Growth Projections

Key financial metrics indicate robust growth potential:

  • Projected Annual Revenue Growth: 11.2%
  • Estimated Earnings Per Share Growth: 14.6%
  • Research and Development Investment: $87.5 million

Competitive Positioning

Competitive Advantage Market Impact
Proprietary Technology 23.4% market differentiation
Global Customer Base 42 countries served
Enterprise Solution Scalability 97% customer retention rate

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