Forum Archive Index - February 2002

["geoff_julie" <gk_jawalker@paradise.net.nz>]

After reviewing the VTL half year report I noted some interesting numbers / ratio's;

 

As per the half year report, profit improved from $1.2m to $1.8m.  If you removed the ($926k) tax credit the profit drops to $874k.

Gross Margin has decreased from 30.9% in 03/01 to 22.5% in 09/01

Profitability (Net Profit After Tax / Sales) decreased from 37.4% to 22.5%

Accounts Receivable has increased from 55 to 70 days (I'd imagine there are a few upset suppliers out there)

Accounts Payable has decreased from 78 to 55 days (paying money out quicker than receiving it??)

Inventory slowdown (Inventory / Cost of Goods Sold) has increased from 54 to 63.3 days (i.e. taking longer to move stock)

 

I'm sure there are a 100 good reasons for explaining the above, there always are!  IMHO, it has taken on a lot of stock and is taking too long to move it and be paid. 

 

Beware those companies with slow stock turn-around and troubles making and receiving payments (CSG comes to mind)!

 

 

 

Geoff (ex-VTL shareholder, bailed out today)