National Healthcare Corporation (NHC) has reported an 11.59 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $11.11 million, or $0.73 a share in the quarter, compared with $12.57 million, or $0.72 a share for the same period last year.
Revenue during the quarter went up marginally by 2.62 percent to $231.28 million from $225.39 million in the previous year period. Total expenses were 95.42 percent of quarterly revenues, up from 93.89 percent for the same period last year. That has resulted in a contraction of 153 basis points in operating margin to 4.58 percent.
Operating income for the quarter was $10.59 million, compared with $13.76 million in the previous year period.
Working capital increases
National Healthcare Corporation has recorded an increase in the working capital over the last year. It stood at $144.43 million as at Sep. 30, 2016, up 15.63 percent or $19.52 million from $124.91 million on Sep. 30, 2015. Current ratio was at 2.01 as on Sep. 30, 2016, up from 1.69 on Sep. 30, 2015.
Days sales outstanding went down to 16 days for the quarter compared with 35 days for the same period last year.
Debt increases substantially
National Healthcare Corporation has witnessed an increase in total debt over the last one year. It stood at $120 million as on Sep. 30, 2016, up 170.90 percent or $75.70 million from $44.30 million on Sep. 30, 2015. Total debt was 11.03 percent of total assets as on Sep. 30, 2016, compared with 4.09 percent on Sep. 30, 2015. Debt to equity ratio was at 0.18 as on Sep. 30, 2016, up from 0.06 as on Sep. 30, 2015.
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