Southwest Iowa Renewable Energy, LLC has reported a 62.99 percent plunge in profit for the year ended Sep. 30, 2016. The company has earned $5.09 million, or $382.16 a share in the year, compared with $13.76 million, or $922.33 a share for the last year. Revenue during the year dropped 7.76 percent to $223.33 million from $242.12 million in the previous year. Gross margin for the year contracted 485 basis points over the previous year to 5 percent. Total expenses were 97.06 percent of annual revenues, up from 91.29 percent for the last year. That has resulted in a contraction of 577 basis points in operating margin to 2.94 percent.
Operating income for the year was $6.58 million, compared with $21.10 million in the previous year.
Brian Cahill, SIRE's president and chief executive officer stated, "During Fiscal 2016, margins dropped compared to Fiscal 2015 . Demand for ethanol continues to be strong with the lower prices, both in the U.S. and abroad." "We continue to explore additional sources of profit, including collaborating with partner firms providing new revenue streams for SIRE, as well as continuing to evaluate and implement new production technology. We will continue to focus on running the plant efficiently, with a balance of optimizing the yield and profit."
Working capital increases sharply
Southwest Iowa Renewable Energy, LLC has recorded an increase in the working capital over the last year. It stood at $9.31 million as at Sep. 30, 2016, up 109.19 percent or $4.86 million from $4.45 million on Sep. 30, 2015. Current ratio was at 1.52 as on Sep. 30, 2016, up from 1.25 on Sep. 30, 2015. Days sales outstanding went up to 15 days for the year compared with 7 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the year compared with 25 days for the previous year period.
Debt remains almost stable
Total debt was 4.28 percent of total assets as on Sep. 30, 2016, compared with 4.21 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.06 as on Sep. 30, 2016, when compared with the last year. 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
