DaVita Inc (DVA) has reported 164.66 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $571.33 million, or $2.76 a share in the quarter, compared with $215.87 million, or $1 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $196.96 million, or $0.95 a share compared with $215.87 million or $1 a share, a year ago. Revenue during the quarter grew 5.81 percent to $3,730.58 million from $3,525.66 million in the previous year period. Gross margin for the quarter contracted 137 basis points over the previous year period to 27.69 percent. Total expenses were 78.04 percent of quarterly revenues, down from 85.55 percent for the same period last year. This has led to an improvement of 751 basis points in operating margin to 21.96 percent.
Operating income for the quarter was $819.16 million, compared with $509.37 million in the previous year period.
However, the adjusted operating income for the quarter stood at $471.82 million compared to $509.37 million in the prior year period. At the same time, adjusted operating margin contracted 180 basis points in the quarter to 12.65 percent from 14.45 percent in the last year period.
For fiscal year 2016, the company expects operating income to be in the range of $1,810 million to $1,870 million.
Operating cash flow improves significantly
DaVita Inc has generated cash of $1,481.26 million from operating activities during the nine month period, up 32.19 percent or $360.73 million, when compared with the last year period. The company has spent $1,257.24 million cash to meet investing activities during the nine month period as against cash outgo of $1,150.38 million in the last year period. It has incurred net capital expenditure of $556.33 million on net basis during the nine month period, up 22.18 percent or $100.98 million from year ago period.
The company has spent $807.98 million cash to carry out financing activities during the nine month period as against cash inflow of $113.88 million in the last year period.
Cash and cash equivalents stood at $913.50 million as on Sep. 30, 2016, down 12.79 percent or $133.92 million from $1,047.42 million on Sep. 30, 2015.
Working capital drops significantly
DaVita Inc has witnessed a decline in the working capital over the last year. It stood at $1,621.89 million as at Sep. 30, 2016, down 30.31 percent or $705.44 million from $2,327.33 million on Sep. 30, 2015. Current ratio was at 1.61 as on Sep. 30, 2016, down from 1.97 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 38 days for the quarter from 34 days for the last year period. Days sales outstanding went down to 57 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 3 days for the quarter compared with 6 days for the previous year period. At the same time, days payable outstanding went down to 23 days for the quarter from 31 for the same period last year.
Debt remains almost stable
DaVita Inc has recorded a decline in total debt over the last one year. It stood at $9,124.77 million as on Sep. 30, 2016, down 0.78 percent or $71.95 million from $9,196.71 million on Sep. 30, 2015. Total debt was 48.21 percent of total assets as on Sep. 30, 2016, compared with 48.67 percent on Sep. 30, 2015. Debt to equity ratio was at 1.78 as on Sep. 30, 2016, up from 1.77 as on Sep. 30, 2015. Interest coverage ratio improved to 7.83 for the quarter from 4.92 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
