Arthur J. Gallagher (AJG) FY2020 results: revenue $7.0 billion, down 2.7% on the year
Arthur J. Gallagher & Co. (AJG) reported revenue of $7.0 billion for fiscal 2020, the year ended 31 December 2020, down 2.7% on the year before. Net income was $819 million, up 22.4%, and diluted earnings per share $4.20. The figures are the company's own, from the 10-K it filed with the SEC on 8 February 2021.
Revenue
$7.0 billion
-2.7% on the year
FY2013FY2020
Operating margin
12.4%
8.7% a year earlier
FY2013FY2020
Net income
$819 million
+22.4% on the year
FY2013FY2020
Diluted EPS
$4.20
+19.3% on the year
FY2013FY2020
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2020
FY2019
FY2018
On the year
Last 8 years
Revenue
7,004
7,195
6,934
-2.7%
Cost of revenue
882
1,353
1,816
-34.8%
Gross profit
6,122
5,842
5,118
+4.8%
Gross margin
87.4%
81.2%
73.8%
Operating income
871
626
479
+39.1%
Operating margin
12.4%
8.7%
6.9%
Interest expense
196
180
138
+9.2%
Pre-tax income
871
626
479
+39.1%
Income tax
12.8
-89.7
-196
Effective tax rate
1.5%
-14.3%
-41.0%
Net income
819
669
634
+22.4%
Net margin
11.7%
9.3%
9.1%
Diluted EPS
$4.20
$3.52
$3.40
+19.3%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2020
FY2019
FY2018
On the year
Last 8 years
Operating cash flow
1,807
1,191
765
+51.7%
Capital expenditure
99.3
139
124
-28.5%
Free cash flow
1,708
1,052
641
+62.3%
Free cash flow margin
24.4%
14.6%
9.2%
Cash from investing
-471
-1,448
-910
Cash from financing
-505
638
162
Depreciation and amortisation
562
474
419
+18.5%
Share-based compensation
13.6
14.0
13.7
-2.9%
Buybacks
n/a
n/a
11.3
Dividends paid
347
321
302
+8.2%
Dividend per share
$1.80
$1.72
$1.64
+4.7%
Diluted shares, weighted
191m
186m
183m
+2.7%
Shares outstanding at period end
194m
188m
184m
+3.0%
Balance sheet
$ million
FY2020
FY2019
FY2018
On the year
Last 8 years
Shareholders' equity
6,186
5,156
4,499
+20.0%
Non-controlling interest
46.5
60.0
70.8
-22.5%
Short-term borrowings
n/a
n/a
365
Debt
4,545
4,607
3,091
-1.3%
Operating lease liabilities
321
341
n/a
-5.9%
Other liabilities
11,233
9,472
8,308
+18.6%
Total liabilities and equity
22,331
19,635
16,334
+13.7%
Fixed assets
451
467
437
-3.6%
Goodwill
6,127
5,618
4,626
+9.1%
Intangible assets
2,400
2,319
1,773
+3.5%
Cash and equivalents
665
605
607
+9.9%
Other assets
12,689
10,625
8,891
+19.4%
Total assets
22,331
19,635
16,334
+13.7%
10-K for the year ended 31 December 2020, filed 8 February 2021: the filing.