General Motors Company (GM) has reported a 33.54 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $2,608 million, or $1.70 a share in the quarter, compared with $1,953 million, or $1.24 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $2.61 million, or $1.70 a share compared with $1.99 million or $1.26 a share, a year ago. Revenue during the quarter grew 10.56 percent to $41,200 million from $37,265 million in the previous year period. Gross margin for the quarter expanded 32 basis points over the previous year period to 13.18 percent. Total expenses were 93.34 percent of quarterly revenues, down from 94.71 percent for the same period last year. This has led to an improvement of 137 basis points in operating margin to 6.66 percent.
Operating income for the quarter was $2,745 million, compared with $1,972 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.40 million compared with $2.66 million in the prior year period. At the same time, adjusted EBITDA margin was almost stable in the quarter to 0.01 percent when compared with the last year period.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $3.06 to $3.56. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $6 to $6.50 on adjusted basis.
Operating cash flow turns positive
General Motors Company has generated cash of $2,041 million from operating activities during the quarter as against cash outgo of $108 million in the last year period. The company has spent $6,805 million cash to meet investing activities during the quarter as against cash outgo of $6,640 million in the last year period.
Cash flow from financing activities was $5,047 million for the quarter, down 21.47 percent or $1,380 million, when compared with the last year period.
Cash and cash equivalents stood at $12,864 million as on Mar. 31, 2017, down 25.05 percent or $4,299 million from $17,163 million on Mar. 31, 2016.
Working capital remains negative
Working capital of General Motors Company was negative $11,306 million on Mar. 31, 2017 compared with negative $3,953 million on Mar. 31, 2016. Current ratio was at 0.88 as on Mar. 31, 2017, down from 0.95 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 19 days for the quarter from 37 days for the last year period. Days sales outstanding were almost stable at 67 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 18 days for the quarter compared with 41 days for the previous year period. At the same time, days payable outstanding went down to 66 days for the quarter from 71 for the same period last year.
Debt increases substantially
General Motors Company has witnessed an increase in total debt over the last one year. It stood at $90,901 million as on Mar. 31, 2017, up 27.76 percent or $19,752 million from $71,149 million on Mar. 31, 2016. Total debt was 39.39 percent of total assets as on Mar. 31, 2017, compared with 34.94 percent on Mar. 31, 2016. Debt to equity ratio was at 1.97 as on Mar. 31, 2017, up from 1.72 as on Mar. 31, 2016. Interest coverage ratio improved to 19.06 for the quarter from 15.53 for the same period last year.
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