Alphabet Inc. (GOOG) has reported an 8.33 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $5,333 million in the quarter, compared with $4,923 million for the same period last year. On the other hand, adjusted net income for the quarter stood at $6,593 million, or $9.36 a share compared with $6,043 million or $8.67 a share, a year ago.
Revenue during the quarter grew 22.20 percent to $26,064 million from $21,329 million in the previous year period. Gross margin for the quarter contracted 251 basis points over the previous year period to 59.10 percent. Total expenses were 74.53 percent of quarterly revenues, down from 74.78 percent for the same period last year. This has led to an improvement of 25 basis points in operating margin to 25.47 percent.
Operating income for the quarter was $6,639 million, compared with $5,380 million in the previous year period.
However, the adjusted operating income for the quarter stood at $8,485 million compared to $6,816 million in the prior year period. At the same time, adjusted operating margin improved 60 basis points in the quarter to 32.55 percent from 31.96 percent in the last year period.
Operating cash flow improves significantly
Alphabet Inc. has generated cash of $36,036 million from operating activities during the year, up 35.62 percent or $9,464 million, when compared with the last year.
The company has spent $31,165 million cash to meet investing activities during the year as against cash outgo of $23,711 million in the last year. It has incurred net capital expenditure of $9,972 million on net basis during the year, up 0.57 percent or $57 million from year ago.
The company has spent $8,332 million cash to carry out financing activities during the year as against cash outgo of $4,225 million in the last year period.
Cash and cash equivalents stood at $12,918 million as on Dec. 31, 2016, down 21.94 percent or $3,631 million from $16,549 million on Dec. 31, 2015.
Working capital increases sharply
Alphabet Inc. has recorded an increase in the working capital over the last year. It stood at $88,652 million as at Dec. 31, 2016, up 25.21 percent or $17,848 million from $70,804 million on Dec. 31, 2015. Current ratio was at 6.29 as on Dec. 31, 2016, up from 4.67 on Dec. 31, 2015.
Debt comes down
Alphabet Inc. has recorded a decline in total debt over the last one year. It stood at $3,935 million as on Dec. 31, 2016, down 24.62 percent or $1,285 million from $5,220 million on Dec. 31, 2015. Total debt was 2.35 percent of total assets as on Dec. 31, 2016, compared with 3.54 percent on Dec. 31, 2015. Debt to equity ratio was at 0.03 as on Dec. 31, 2016, down from 0.04 as on Dec. 31, 2015.
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