Persisting Growth in Q3 2016 Revenue and Cost Management Remains Consistent
The company has announced its Q3 financial results, revealing a 3% organic revenue growth, a 20 basis points decrease in gross margin, and a 5.5% EBITA margin (excluding one-offs). These figures can be attributed to factors such as tariff costs of approximately $40 million, which the company plans to offset through pricing actions, as well as adjustments related to acquisition amortization and restructuring costs.
The organic revenue growth excludes impacts from acquisitions, divestitures, and foreign currency movements, indicating that the core business itself grew steadily. The EBITA margin excluding one-offs reflects operational profitability after excluding unusual, non-recurring expenses, which in this case includes acquisition-related amortization and restructuring expenses estimated at approximately $0.60 and $0.15 per share, respectively.
Regarding the net debt to EBITDA ratio, the specific figure for the company is not explicitly provided in the available information. While sources mention several financial metrics such as EBITDA, net income, and cash flow management, they do not disclose the company’s net debt to EBITDA ratio directly.
Elsewhere in the report, the company's Days Sales Outstanding (DSO) decreased by 1 day to 52 days. The term "EBITA" refers to operating income before amortisation and impairment of goodwill and intangible assets, while "EBITDA" is a non-US GAAP measure that stands for earnings before interest, taxes, depreciation, and amortization.
Net debt is another non-US GAAP measure, calculated as net debt at September 30, 2016 divided by the last 4 quarters of EBITDA, excluding one-offs. It includes short-term and long-term debt, less cash and cash equivalents and short-term investments. The term "organic growth" is a non-US GAAP measure that excludes the impact of currency, acquisitions, and divestitures.
In summary, the organic revenue growth and margin changes were influenced mainly by tariffs, pricing actions, and acquisition-related costs, while detailed net debt to EBITDA data is not present in the provided results. If you require, I can help find more precise net debt to EBITDA data if you specify the company name.
The company's strategic decisions in pricing and its efforts to offset tariff costs are indicative of a more proactive approach towards business investment and finance management. The absence of detailed net debt to EBITDA data in the Q3 report may warrant a closer look at the company's overall financial strategy in relation to balancing debt and earnings.
