MercadoLibre, Inc. (MELI) has reported a 60.41 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $48.52 million, or $1.10 a share in the quarter, compared with $30.25 million, or $0.68 a share for the same period last year.
Revenue during the quarter surged 73.78 percent to $273.93 million from $157.63 million in the previous year period. Gross margin for the quarter contracted 318 basis points over the previous year period to 61.64 percent. Total expenses were 76.89 percent of quarterly revenues, down from 80.66 percent for the same period last year. This has led to an improvement of 377 basis points in operating margin to 23.11 percent.
Operating income for the quarter was $63.31 million, compared with $30.49 million in the previous year period.
Operating cash flow turns positive
MercadoLibre, Inc. has generated cash of $104.76 million from operating activities during the quarter as against cash outgo of $11.80 million in the last year period.
The company has spent $39.15 million cash to meet investing activities during the quarter as against cash inflow of $0.78 million in the last year period.
Cash flow from financing activities was unchanged at negative $5.21 million for the quarter, when compared with the last year.
Cash and cash equivalents stood at $301.39 million as on Mar. 31, 2017, up 108.02 percent or $156.50 million from $144.88 million on Mar. 31, 2016.
Working capital increases sharply
MercadoLibre, Inc. has recorded an increase in the working capital over the last year. It stood at $308.73 million as at Mar. 31, 2017, up 41.15 percent or $90.01 million from $218.72 million on Mar. 31, 2016. Current ratio was at 1.48 as on Mar. 31, 2017, down from 1.57 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 114 days for the quarter from 119 days for the last year period. Days sales outstanding went down to 55 days for the quarter compared with 70 days for the same period last year.
At the same time, days payable outstanding went down to 170 days for the quarter from 189 for the same period last year.
Debt moves up
MercadoLibre, Inc. has witnessed an increase in total debt over the last one year. It stood at $320.96 million as on Mar. 31, 2017, up 7.36 percent or $22 million from $298.96 million on Mar. 31, 2016. Total debt was 21.63 percent of total assets as on Mar. 31, 2017, compared with 27.59 percent on Mar. 31, 2016. Debt to equity ratio was at 0.67 as on Mar. 31, 2017, down from 0.85 as on Mar. 31, 2016. Interest coverage ratio improved to 9.78 for the quarter from 5.36 for the same period last year.
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