00:00looking at the company's financials you'll find that it hasn't been smooth sailing in fact if we
00:06take a look at their revenue figures you'll see that they've actually been on a decline for the
00:10past decade similarly if we take a look at their net income you'll see that it's actually been
00:16negative for the past five years but here's the thing none of these numbers actually tell us
00:21anything meaningful about the company's performance because the company does not
00:25actually report these metrics as quarterly or annual figures instead the company reports these
00:32figures on a trailing 12-month basis which means that they include the financial results of all of
00:37their acquisitions within these figures if we exclude the impact of acquisitions we actually
00:43find that both the revenue and net income have been on an upward trajectory in recent years this
00:49suggests that not only has the company been able to grow its core operations but it's also been able
00:54to successfully integrate its acquired companies in terms of profitability phillips actually does
01:00quite well especially when compared to other consumer goods companies when we look at their
01:06net income margins we find that it sits at around 12 percent which is much higher than the five to
01:12seven
01:12percent margins of most consumer goods companies
