CDW Corporation (CDW) has reported a 16.57 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $125.90 million, or $0.76 a share in the quarter, compared with $150.90 million, or $0.88 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $160.30 million, or $0.97 a share compared with $143.20 million or $0.84 a share, a year ago.

Revenue during the quarter grew 5.92 percent to $3,708.20 million from $3,501.10 million in the previous year period. Gross margin for the quarter expanded 37 basis points over the previous year period to 16.57 percent. Total expenses were 93.60 percent of quarterly revenues, down from 94.16 percent for the same period last year. This has led to an improvement of 56 basis points in operating margin to 6.40 percent.

Operating income for the quarter was $237.50 million, compared with $204.60 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $310.40 million compared with $282.10 million in the prior year period. At the same time, adjusted EBITDA margin improved 31 basis points in the quarter to 8.37 percent from 8.06 percent in the last year period.

"Third quarter results reinforce the strength of our strategy and power of our business model," said Thomas E. Richards, chairman and chief executive officer of CDW. "We delivered solid topline growth with excellent profitability in today's challenging economic environment, once again highlighting the value of our balanced channels, broad solutions portfolio and investments in fast growing technologies, like cloud, security and services, which are leading growth across the company."

The company has spent $43.50 million cash to meet investing activities during the nine month period as against cash outgo of $308.20 million in the last year period.

The company has spent $370.90 million cash to carry out financing activities during the nine month period as against cash outgo of $229.90 million in the last year period.

Cash and cash equivalents stood at $118.30 million as on Sep. 30, 2016, up 21.33 percent or $20.80 million from $97.50 million on Sep. 30, 2015.

Working capital remains almost stable

CDW Corporation has recorded an increase in the working capital over the last year. It stood at $871 million as at Sep. 30, 2016, up 0.93 percent or $8 million from $863 million on Sep. 30, 2015. Current ratio was at 1.41 as on Sep. 30, 2016, down from 1.46 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 24 days for the quarter from 36 days for the last year period. Days sales outstanding were almost stable at 52 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 7 days for the quarter compared with 13 days for the previous year period. At the same time, days payable outstanding went up to 35 days for the quarter from 29 for the same period last year.