Apple (AAPL) has reported 2.56 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $17,891 million, or $3.36 a share in the quarter, compared with $18,361 million, or $3.28 a share for the same period last year.
Revenue during the quarter grew 3.27 percent to $78,351 million from $75,872 million in the previous year period. Gross margin for the quarter contracted 158 basis points over the previous year period to 38.51 percent. Total expenses were 70.19 percent of quarterly revenues, up from 68.14 percent for the same period last year. That has resulted in a contraction of 204 basis points in operating margin to 29.81 percent.
Operating income for the quarter was $23,359 million, compared with $24,171 million in the previous year period.
"We're thrilled to report that our holiday quarter results generated Apple's highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch," said Tim Cook, Apple's chief executive officer. "Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline."
For the second-quarter, Apple projects revenue to be in the range of $51,500 million to $53,500 million.
Operating cash flow falls marginallyApple has generated cash of $27,056 million from operating activities during the quarter, down 1.48 percent or $ 407 million, when compared with the last year period. The company has spent $19,122 million cash to meet investing activities during the quarter as against cash outgo of $20,450 million in the last year period.
The company has spent $12,047 million cash to carry out financing activities during the quarter as against cash outgo of $11,444 million in the last year period.
Cash and cash equivalents stood at $16,371 million as on Dec. 31, 2016, down 1.91 percent or $318 million from $16,689 million on Dec. 26, 2015.
Working capital increases sharply
Apple has recorded an increase in the working capital over the last year. It stood at $19,202 million as at Dec. 31, 2016, up 15,019.69 percent or $19,075 million from $127 million on Dec. 26, 2015. Current ratio was at 1.23 as on Dec. 31, 2016, up from 1 on Dec. 26, 2015.
Cash conversion cycle (CCC) has increased to 36 days for the quarter from 31 days for the last year period. Days sales outstanding went up to 36 days for the quarter compared with 33 days for the same period last year.
Days inventory outstanding has decreased to 3 days for the quarter compared with 5 days for the previous year period. At the same time, days payable outstanding went up to 75 days for the quarter from 69 for the same period last year.
Debt increases substantiallyApple has witnessed an increase in total debt over the last one year. It stood at $87,549 million as on Dec. 31, 2016, up 39.05 percent or $24,586 million from $62,963 million on Dec. 26, 2015. Total debt was 26.44 percent of total assets as on Dec. 31, 2016, compared with 21.47 percent on Dec. 26, 2015. Debt to equity ratio was at 0.66 as on Dec. 31, 2016, up from 0.49 as on Dec. 26, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
