Yes that it is the norm for retailers to have large payables, no because it is not all payables for DSH. There is $70.5m in borrowings on the balance sheet, an increase from $0m in borrowings in FY14. It is not unusual for a company to borrow, but this is a large increase over the span of 1 year.
This brings us back to the question of how sustainable is the dividend when a company has to borrow 1.6x annual earnings for FY15. The multiplier will get higher in FY16 if their lower guidance is met.
Where do you think the money will come from to pay this down?
DSH Price at posting:
69.5¢ Sentiment: None Disclosure: Not Held
