Marsh & Mclennan Companies (MMC) has reported a 16.27 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $436 million, or $0.84 a share in the quarter, compared with $375 million, or $0.71 a share for the same period last year. On an adjusted basis, earnings per share were at $0.89 for the quarter compared with $0.71 in the same period last year.
Revenue during the quarter went up marginally by 0.78 percent to $3,364 million from $3,338 million in the previous year period.
Total expenses come down significantly
Operating income for the quarter was $633 million, compared with $594 million in the previous year period.
However, the adjusted operating income for the quarter stood at $676 million compared to $582 million in the prior year period. At the same time, adjusted operating margin improved 266 basis points in the quarter to 20.10 percent from 17.44 percent in the last year period.
Dan Glaser, president and chief executive officer, said "Marsh & McLennan Companies had a strong finish to the year. In the fourth quarter, we produced underlying revenue growth of 3% on a consolidated basis, including 5% growth in Risk & Insurance Services and 2% in Consulting. We also delivered double-digit growth in both GAAP and adjusted EPS with margin expansion in both segments." "For the year, our results were excellent. We generated underlying revenue growth of 3% and significant margin improvement. GAAP and adjusted EPS each rose by double digits."
Assets fall, liabilities grow
Total assets were almost stable over the past one year at $18,190 million on Dec. 31, 2016. On the other hand, total liabilities were at $11,918 million as on Dec. 31, 2016, up 2.62 percent or $304 million from year-ago.
Return on assets stood at 2.69 percent in the quarter, up 0.35 from 2.34 percent in the last year period. At the same time, return on equity was at 6.95 percent in the quarter, up 1.27 from 5.68 percent in the last year period.
Total debt was at $4,807 million as on Dec. 31, 2016, up 8.90 percent or $393 million from year-ago. Shareholders equity stood at $6,272 million as on Dec. 31, 2016, down 5 percent or $330 million from year-ago. As a result, debt to equity ratio went up 10 basis points to 0.77 percent in the quarter from 0.67 percent in the last year period.
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