Levi Strauss & Co (LVIS) has reported a 38.97 percent jump in profit for the year ended Nov. 27, 2016. The company has earned $291.05 million in the year, compared with $209.44 million for the last year.
Revenue during the year went up marginally by 1.30 percent to $4,552.74 million from $4,494.49 million in the previous year.
Operating income for the year was $462.21 million, compared with $431.05 million in the previous year.
"We are pleased to report our fourth consecutive year of profitable constant currency revenue growth behind the strength of the Levi's® brand and our global direct-to-consumer business," said Chip Bergh, president and chief executive officer. "Looking ahead, although it remains a very challenging environment, given our diversified portfolio we remain optimistic about our long term prospects for growth."
Operating cash flow improves significantly
Levi Strauss & Co has generated cash of $306.55 million from operating activities during the year, up 40.41 percent or $88.22 million, when compared with the last year.
The company has spent $68.35 million cash to meet investing activities during the year as against cash outgo of $80.83 million in the last year. It has incurred net capital expenditure of $85.52 million on net basis during the year, down 8.32 percent or $7.76 million from year ago.
The company has spent $173.55 million cash to carry out financing activities during the year as against cash outgo of $94.90 million in the last year period.
Cash and cash equivalents stood at $375.56 million as on Nov. 27, 2016, up 17.89 percent or $56.99 million from $318.57 million on Nov. 29, 2015.
Working capital increases sharply
Levi Strauss & Co has recorded an increase in the working capital over the last year. It stood at $924.40 million as at Nov. 27, 2016, up 35.55 percent or $242.42 million from $681.98 million on Nov. 29, 2015. Current ratio was at 2.21 as on Nov. 27, 2016, up from 1.81 on Nov. 29, 2015.
Debt comes down
Levi Strauss & Co has recorded a decline in total debt over the last one year. It stood at $1,060.54 million as on Nov. 27, 2016, down 8.96 percent or $104.32 million from $1,164.86 million on Nov. 29, 2015. Total debt was 35.50 percent of total assets as on Nov. 27, 2016, compared with 40.38 percent on Nov. 29, 2015. Debt to equity ratio was at 2.07 as on Nov. 27, 2016, down from 3.51 as on Nov. 29, 2015. Interest coverage ratio improved to 6.32 for the year from 5.31 for the same period last year.
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