Wisdomtree Investments Inc (WETF) has reported a 43.01 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $6.88 million, or $0.05 a share in the quarter, compared with $12.07 million, or $0.09 a share for the same period last year. Revenue during the quarter dropped 10.31 percent to $54.60 million from $60.88 million in the previous year period. Total expenses were 72.85 percent of quarterly revenues, up from 64.40 percent for the same period last year. That has resulted in a contraction of 845 basis points in operating margin to 27.15 percent.
Operating income for the quarter was $14.82 million, compared with $21.67 million in the previous year period.
WisdomTree chief executive officer and president Jonathan Steinberg said, “The evolution of the asset management industry is accelerating with several trends and market forces converging. We’ve been a pioneer since our founding more than a decade ago, first in building our veteran team, developing innovative products and extending our presence to other promising markets around the world. We are currently undertaking a number of initiatives to remain ahead of our competition and to benefit from the increasing inflows we expect to continue into the ETF market in the coming years.”
Operating cash flow drops significantly
Wisdomtree Investments Inc has generated cash of $2.45 million from operating activities during the quarter, down 63.89 percent or $ 4.33 million, when compared with the last year period. The company has spent $1.24 million cash to meet investing activities during the quarter as against cash outgo of $11.04 million in the last year period.
The company has spent $14.55 million cash to carry out financing activities during the quarter as against cash outgo of $46.39 million in the last year period.
Cash and cash equivalents stood at $79.64 million as on Mar. 31, 2017, down 50.15 percent or $80.12 million from $159.76 million on Mar. 31, 2016.
Working capital declines
Wisdomtree Investments Inc has witnessed a decline in the working capital over the last year. It stood at $135.50 million as at Mar. 31, 2017, down 15.38 percent or $24.63 million from $160.13 million on Mar. 31, 2016. Current ratio was at 5.72 as on Mar. 31, 2017, down from 7.68 on Mar. 31, 2016.
Days sales outstanding went up to 39 days for the quarter compared with 36 days for the same period last year.
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