McGraw-Hill Financiall (formerly The McGraw-Hill Companies) is now a provider of credit ratings, benchmarks, and analytics for the global capital and commodity markets. The company was a leading publisher of textbooks, tests, and related materials, serving the elementary, secondary, and higher education markets through McGraw-Hill Education (MHE) before it spun that business off in 2013. Other businesses include S&P Ratings (indexes and credit ratings); S&P Capital IQ and S&P Indices (financial and business information); and Commodities and Commercial (Platts, J.D. Power and Associates, McGraw-Hill Construction, and Aviation Week).
The company's revenue increased $425 million in fiscal 2013 or 10%, to $4.8 billion compared to $4.45 billion in fiscal 2012. The spike was primarily due to increased revenue for corporate ratings.
McGraw-Hill Financial's net income increased to $1.376 billion in fiscal 2013 compared to $437 million in fiscal 2012. The swing was largely due to decreased interest expenses. The company reported an increase in cash from operating activities by $69 million to $816 million in fiscal 2013. That bump was primarily the result of higher operating results combined with improved cash collections in accounts receivable.
In early 2013 McGraw-Hill completed the sale of its education arm to private equity firm Apollo Global Management for $2.5 billion in cash and debt as part of its plan to focus on its financial information businesses. The sale included its digital and traditional textbook business and other assets.
The renamed McGraw-Hill Financial includes S&P Ratings, S&P Capital IQ, S&P Indices, and Commodities and Commercial Markets.
The company decided to spin off its education business in response to decreased spending on elementary and high school textbooks. Its financial business, which provides global financial information, research, and analytics tools to investment advisors, wealth managers, and institutional investors, has fared better. The deal is creating two more focused public companies, each of which McGraw-Hill hopes will operate more efficiently.