Morningstar, Inc. (MORN) has reported an 88.47 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $70.30 million, or $1.63 a share in the quarter, compared with $37.30 million, or $0.85 a share for the same period last year. Revenue during the quarter grew 5.26 percent to $212.20 million from $201.60 million in the previous year period. Gross margin for the quarter expanded 64 basis points over the previous year period to 58.53 percent. Total expenses were 76.48 percent of quarterly revenues, up from 75.15 percent for the same period last year. That has resulted in a contraction of 134 basis points in operating margin to 23.52 percent.
Operating income for the quarter was $49.90 million, compared with $50.10 million in the previous year period.
Kunal Kapoor, chief executive officer, added, "We’re concentrating on supporting our clients as they go through a period of significant change with a growing trend toward protecting investors’ interests and reducing costs. We view the change happening in our industry as an opportunity to innovate, grow, and help meet investors’ evolving needs. I’m particularly excited about our growth prospects in areas such as managed retirement accounts, Morningstar Direct, PitchBook, and Morningstar Managed Portfolios, as well as our core data and research capabilities."
Operating cash flow declines
Morningstar, Inc. has generated cash of $213.70 million from operating activities during the year, down 11.51 percent or $27.80 million, when compared with the last year. The company has spent $274.20 million cash to meet investing activities during the year as against cash outgo of $79.50 million in the last year.
Cash flow from financing activities was $123.70 million for the year as against cash outgo of $127.50 million in the last year period.
Cash and cash equivalents stood at $259.10 million as on Dec. 31, 2016, up 25.11 percent or $52 million from $207.10 million on Dec. 31, 2015.
Working capital increases sharply
Morningstar, Inc. has recorded an increase in the working capital over the last year. It stood at $177.10 million as at Dec. 31, 2016, up 67.87 percent or $71.60 million from $105.50 million on Dec. 31, 2015. Current ratio was at 1.60 as on Dec. 31, 2016, up from 1.35 on Dec. 31, 2015.
Debt increases substantially
Morningstar, Inc. has witnessed an increase in total debt over the last one year. It stood at $250 million as on Dec. 31, 2016, up 614.29 percent or $215 million from $35 million on Dec. 31, 2015. Long-term debt stood at $250 million as on Dec. 31, 2016. Total debt was 18.51 percent of total assets as on Dec. 31, 2016, compared with 3.40 percent on Dec. 31, 2015. Debt to equity ratio was at 0.36 as on Dec. 31, 2016, up from 0.05 as on Dec. 31, 2015. 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
