S&P Global, Inc (SPGI) has reported a 253.97 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $892 million, or $3.36 a share in the quarter, compared with $252 million, or $0.92 a share for the same period last year. Revenue during the quarter grew 8.69 percent to $1,439 million from $1,324 million in the previous year period. Total expenses were 6.32 percent of quarterly revenues, down from 69.03 percent for the same period last year. This has led to an improvement of 6271 basis points in operating margin to 93.68 percent.
Operating income for the quarter was $1,348 million, compared with $410 million in the previous year period.
“We have made substantial refinements to our portfolio as we completed the sale of J.D. Power, two pricing businesses, and an equity research business while adding PIRA Energy Group to S&P Global Platts and Trucost to S&P Dow Jones Indices. It is a testament to the strength of our business and the operating model that we have been able to successfully manage significant acquisitions and divestitures while continuing to deliver on our growth and performance objectives,” said Douglas L. Peterson, president and chief executive officer of S&P Global. “Our strong revenue growth, successful productivity initiatives, and meaningful share repurchases combined to deliver third quarter adjusted EPS growth of 17%; a noteworthy result in this economic environment."
Operating cash flow turns positive
S&P Global, Inc has generated cash of $1,171 million from operating activities during the nine month period as against cash outgo of $356 million in the last year period. Cash flow from investing activities was $858 million for the nine month period as against cash outgo of $2,456 million in the last year period.
The company has spent $1,018 million cash to carry out financing activities during the nine month period as against cash inflow of $1,927 million in the last year period.
Cash and cash equivalents stood at $2,399 million as on Sep. 30, 2016, up 66.48 percent or $958 million from $1,441 million on Sep. 30, 2015.
Working capital increases sharply
S&P Global, Inc has recorded an increase in the working capital over the last year. It stood at $677 million as at Sep. 30, 2016, up 104.53 percent or $346 million from $331 million on Sep. 30, 2015. Current ratio was at 1.22 as on Sep. 30, 2016, up from 1.13 on Sep. 30, 2015.
Days sales outstanding went down to 34 days for the quarter compared with 71 days for the same period last year.
Debt moves up
S&P Global, Inc has witnessed an increase in total debt over the last one year. It stood at $3,963 million as on Sep. 30, 2016, up 13.59 percent or $474 million from $3,489 million on Sep. 30, 2015. Short-term debt stood at $400 million as on Sep. 30, 2016. Total debt was 45.68 percent of total assets as on Sep. 30, 2016, compared with 42.74 percent on Sep. 30, 2015. Debt to equity ratio was at 7.76 as on Sep. 30, 2016, up from 4.96 as on Sep. 30, 2015. Interest coverage ratio improved to 34.56 for the quarter from 13.67 for the same period last year.
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