DaVita Inc. (DVA) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $157.73 million, or $ 0.80 a share in the quarter, against a net loss of $6 million, or $0.03 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $192.03 million, or $0.98 a share compared with $214.06 million or $1.01 a share, a year ago. Revenue during the quarter grew 5.15 percent to $3,715.74 million from $3,533.59 million in the previous year period. Gross margin for the quarter contracted 137 basis points over the previous year period to 27.45 percent. Total expenses were 89.73 percent of quarterly revenues, down from 93.07 percent for the same period last year. This has led to an improvement of 333 basis points in operating margin to 10.27 percent.
Operating income for the quarter was $381.43 million, compared with $244.94 million in the previous year period.
However, the adjusted operating income for the quarter stood at $444.50 million compared to $473.63 million in the prior year period. At the same time, adjusted operating margin contracted 144 basis points in the quarter to 11.96 percent from 13.40 percent in the last year period.
For financial year 2017, the company forecasts adjusted operating income to be in the range of $1,635 million to $1,775 million.
Operating cash flow improves significantlyDaVita Inc. has generated cash of $1,963.44 million from operating activities during the year, up 26.09 percent or $406.24 million, when compared with the last year. The company has spent $1,201.67 million cash to meet investing activities during the year as against cash outgo of $881.78 million in the last year. It has incurred net capital expenditure of $764.37 million on net basis during the year, up 11.05 percent or $76.09 million from year ago.
The company has spent $1,351.98 million cash to carry out financing activities during the year as against cash outgo of $138.97 million in the last year period.
Cash and cash equivalents stood at $913.19 million as on Dec. 31, 2016, down 39.08 percent or $585.93 million from $1,499.12 million on Dec. 31, 2015.
Working capital drops significantly
DaVita Inc. has witnessed a decline in the working capital over the last year. It stood at $1,283.78 million as at Dec. 31, 2016, down 38.99 percent or $820.36 million from $2,104.14 million on Dec. 31, 2015. Current ratio was at 1.48 as on Dec. 31, 2016, down from 1.88 on Dec. 31, 2015.
Cash conversion cycle (CCC) was almost stable at 23 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 29 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 3 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 9 days for the quarter, when compared with the previous year period.
Debt remains almost stable
Total debt of DaVita Inc. remained almost stable for the quarter at $9,112.37 million, when compared with the last year period. Total debt was 48.62 percent of total assets as on Dec. 31, 2016, compared with 49.31 percent on Dec. 31, 2015. Debt to equity ratio was at 1.88 as on Dec. 31, 2016, up from 1.80 as on Dec. 31, 2015. Interest coverage ratio improved to 3.67 for the quarter from 2.37 for the same period last year. 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
