DaVita Inc. (DVA) has reported a 359.49 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $447.70 million, or $2.29 a share in the quarter, compared with $97.43 million, or $0.47 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $153.60 million, or $0.79 a share compared with $190.43 million or $0.92 a share, a year ago. Revenue during the quarter grew 3.24 percent to $3,697.28 million from $3,581.14 million in the previous year period. Gross margin for the quarter contracted 153 basis points over the previous year period to 26.36 percent. Total expenses were 75.98 percent of quarterly revenues, down from 89.81 percent for the same period last year. This has led to an improvement of 1383 basis points in operating margin to 24.02 percent.
Operating income for the quarter was $888.24 million, compared with $364.89 million in the previous year period.
However, the adjusted operating income for the quarter stood at $391.82 million compared to $457.89 million in the prior year period. At the same time, adjusted operating margin contracted 219 basis points in the quarter to 10.60 percent from 12.79 percent in the last year period.
For fiscal year 2017, DaVita Inc. projects adjusted operating income to be in the range of $1,635 million to $1,775 million.
Operating cash flow improves significantly
DaVita Inc. has generated cash of $865.17 million from operating activities during the quarter, up 101.67 percent or $436.17 million, when compared with the last year period. The company has spent $250.01 million cash to meet investing activities during the quarter as against cash outgo of $554.31 million in the last year period. It has incurred net capital expenditure of $167.92 million on net basis during the quarter, down 0.36 percent or $0.61 million from year ago period.
The company has spent $58.94 million cash to carry out financing activities during the quarter as against cash outgo of $333.10 million in the last year period.
Cash and cash equivalents stood at $1,472.23 million as on Mar. 31, 2017, up 41.37 percent or $430.81 million from $1,041.43 million on Mar. 31, 2016.
Working capital increases marginally
DaVita Inc. has recorded an increase in the working capital over the last year. It stood at $1,790.32 million as at Mar. 31, 2017, up 1.96 percent or $34.38 million from $1,755.94 million on Mar. 31, 2016. Current ratio was at 1.64 as on Mar. 31, 2017, down from 1.72 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 43 days for the quarter from 48 days for the last year period. Days sales outstanding went down to 57 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 3 days for the quarter compared with 7 days for the previous year period. At the same time, days payable outstanding went down to 16 days for the quarter from 18 for the same period last year.
Debt remains almost stable
Total debt of DaVita Inc. remained almost stable for the quarter at $9,089.10 million, when compared with the last year period. Total debt was 46.88 percent of total assets as on Mar. 31, 2017, compared with 49.25 percent on Mar. 31, 2016. Debt to equity ratio was at 1.70 as on Mar. 31, 2017, down from 1.85 as on Mar. 31, 2016. Interest coverage ratio improved to 8.51 for the quarter from 3.55 for the same period 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: [email protected]
