Allegion shows strengths in terms of ROA, ROE, and historical positive trends in cash, receivables, and property, plant & equipment. However, there are concerns about the substantial increases in goodwill and intangible assets, the decrease in cash in 2022, and the rising debt levels. Further investigation into the reasons behind these changes is crucial for a more thorough analysis. For cash and marketable securities, There has been a consistent increase until 2020, which is generally positive and a decrease in 2022 may raise concerns, requiring further investigation. Net recieveable shows A decreasing trend is generally positive, indicating efficient management of accounts receivable and an increase in 2022 requires additional scrutiny to understand the cause. Consistent growth reflects ongoing investment in infrastructure, a positive sign for future expansion. The absence of recorded treasury stock may suggest a lack of a durable competitive advantage, but further investigation is needed. Long term investments is constant at $5.7 million. While stability is good, Buffett generally prefers companies to use excess cash for productive purposes. High ROA indicates steady income over the years, with variations in 2020 possibly due to COVID-19. Both short-term and long-term debt have increased over the years. Buffett generally prefers companies with low or manageable debt levels.

Would this be a company that Buffett would potentially invest in? Would you recommend an investment in this company?

Answer rating: 100% (QA)

Based on the provided analysis of Allegion there are both positive aspects and areas of concern regarding the companys financial performance and posit... View the full answer