Earnings Analysis for MCO
Revenue Analysis
Total and Operating Revenue: MCO’s Total Revenue has shown variability over the periods but registered an increase, with amounts reaching $1.786 billion as of the latest period (2024-03-31), a notable rise from previous quarters such as $1.472 billion (2023-09-30) and $1.494 billion (2023-06-30).
Gross Profit Margins: The Gross Profit was reported only for two periods, being $1.068 billion in 2023-06-30 and slightly lower at $1.042 billion in 2023-03-31, indicating a relatively consistent Gross Profit margin during these periods.
Cost Management
Cost of Revenue: Cost of Revenue was reported at $426 million on both 2023-06-30 and 2023-03-31. The company’s management of cost of revenue has been consistent in these periods.
Operating Expense: Operating Expenses were $980 million in the latest period, following a similar trend as previous quarters like $910 million (2023-09-30) and $934 million (2023-06-30).
Total Expenses: Total Expenses stand at $980 million as of the latest data, holding steady as compared to prior quarters.
Profitability Analysis
EBITDA: EBITDA has seen an overall increase to $936 million in the latest period from earlier values of $667 million (2023-09-30) and $671 million (2023-06-30).
Operating Income: Operating Income was $806 million in the latest period, reflecting a general growth trend from previous values like $562 million (2023-09-30) and $560 million (2023-06-30).
Pretax Income: Pretax Income reached $752 million most recently, showing a solid increase from $487 million (2023-09-30) and $492 million (2023-06-30).
Net Income: The Net Income was stable at $577 million in the latest data compared to $389 million (2023-09-30) and $377 million (2023-06-30).
Cash Flow Indicators
Reconciled Depreciation: The depreciation figure has been consistently around $90-100 million through the periods reviewed.
Interest Expense: Interest expense has seen a slight fluctuation, marked at $84 million in the latest period, consistent with values of previous periods.
Taxation
Tax Rate: The Tax Rate has seen variations; however, a notable tax rate applied was about 23.27% in the latest period.
Tax Provision: There is a significant jump in Tax Provision to $175 million in the most recent data from much lower figures previously, indicating higher tax liabilities aligned with increased profits.
Tax Effect of Unusual Items: This was calculated to be around -$1.16 million in the latest data, suggesting minimal impact from unusual items on the net tax.
Shareholder Metrics
Diluted and Basic EPS: EPS has shown growth, with the latest Diluted EPS at 3.15 and Basic EPS at 3.16, indicating solid profitability per share.
Average Shares: The average shares stood around 183-184 million across various periods, which helps in understanding per share calculations such as EPS.
Net Income Available to Common Stockholders: This remained consistently reported at values resonating with general net income figures like $577 million in the latest period.
Conclusion
The overall analysis reveals a positive trend in MCO’s core financial strengths including revenue growth, cost management efficiencies, and robust profitability. The progressive increase in revenues alongside stable cost management practices and enhanced profitability metrics highlights a sound financial position, which may interest investors looking for stable yet growing investment opportunities.
Appendices
Data Tables: Due to the nature of this communication, detailed data tables are not displayed here but they encompass a range of financial metrics as provided and analyzed above.