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From: | "geoff_julie" <gk_jawalker@paradise.net.nz> |
Date: | Fri, 8 Feb 2002 22:49:54 +1300 |
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)
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