CME Group Inc. (CME) has reported a 28.01 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $373.40 million, or $1.10 a share in the quarter, compared with $291.70 million, or $0.86 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $387.30 million, or $1.14 a share compared with $327 million or $0.97 a share, a year ago. Revenue during the quarter grew 12.18 percent to $912.90 million from $813.80 million in the previous year period. Gross margin for the quarter expanded 78 basis points over the previous year period to 94.10 percent. Total expenses were 40.83 percent of quarterly revenues, down from 42.26 percent for the same period last year. This has led to an improvement of 143 basis points in operating margin to 59.17 percent.
Operating income for the quarter was $540.20 million, compared with $469.90 million in the previous year period.
"Our diverse risk management products and services continue to increase in demand, especially given the unpredictable nature of ongoing geopolitical changes, and our trading volume for the fourth quarter and full-year 2016 increased more than 12 percent, driving double-digit earnings growth over both periods," said CME Group chairman and chief executive officer Terry Duffy. "Looking ahead, the opportunity to provide solutions to our global clients has never been greater, and the fact our open interest exceeded 120 million contracts for the first time ever during the fourth quarter shows how engaged they are in our markets. Further, by driving volume growth and remaining very focused on expense discipline, we were able to declare $1.9 billion of dividends for our shareholders during 2016."
Working capital remains almost stable
CME Group Inc. has recorded an increase in the working capital over the last year. It stood at $1,085.90 million as at Dec. 31, 2016, up 0.55 percent or $5.90 million from $1,080 million on Dec. 31, 2015. Current ratio was at 1.03 as on Dec. 31, 2016, down from 1.03 on Dec. 31, 2015.
Debt remains almost stable
Total debt of CME Group Inc. remained almost stable for the quarter at $2,231.20 million, when compared with the last year period. Long-term debt of Cme Group remained almost stable for the quarter at $2,231.20 million, when compared with the last year period. Total debt was 3.22 percent of total assets as on Dec. 31, 2016, compared with 3.31 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.11 as on Dec. 31, 2016, when compared with the last year.
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