Visa (V) has reported an 11.51 percent rise in profit for the quarter ended Dec. 31, 2014. The company has earned $1,569 million, or $6.10 a share in the quarter, compared with $1,407 million, or $5.33 a share for the same period last year. Revenue during the quarter grew 7.19 percent to $3,382 million from $3,155 million in the previous year period. Total expenses were 33.83 percent of quarterly revenues, down from 34.17 percent for the same period last year. This has led to an improvement of 34 basis points in operating margin to 66.17 percent.
Operating income for the quarter was $2,238 million, compared with $2,077 million in the previous year period.
Operating cash flow improves Visa has generated cash of $1,761 million from operating activities during the quarter, up 14.28 percent or $220 million, when compared with the last year period.
The company has spent $636 million cash to meet investing activities during the quarter as against cash outgo of $276 million in the last year period.
The company has spent $1,012 million cash to carry out financing activities during the quarter as against cash outgo of $1,330 million in the last year period. It has spent net of $773 million on repurchase of common stocks.
Cash and cash equivalents stood at $2,085 million as on Dec. 31, 2014, down 1.70 percent or $36 million from $2,121 million on Dec. 31, 2013.
Working capital increases
Visa has recorded an increase in the working capital over the last year. It stood at $4,066 million as at Dec. 31, 2014, up 20.30 percent or $686 million from $3,380 million on Dec. 31, 2013. Current ratio was at 1.70 as on Dec. 31, 2014, down from 1.77 on Dec. 31, 2013.
Days sales outstanding went down to 19 days for the quarter compared with 25 days for the same period last year.
"Visa kicked-off fiscal 2015 delivering another solid quarter of revenue and earnings growth. While the challenges of the macro global environment don’t seem to abate, our results have remained consistent and reflect the strength and underlying resilience of our business model," said Charlie Scharf, chief executive officer of Visa Inc. "Our focus remains squarely on investing in our long-term strategic initiatives, driving new technologies and ways to pay as we continue to work collaboratively with governments, issuers, acquirers, and merchant partners."
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