Ann: FY20 Investor Presentation, page-10

One of the hidden improvements in NTD is their greater efficiency in controlling cash.
Cash ops for FY20 were $15.5m v FY19 @ $4.07m
They have reduced their days of inventory from 105 to 95 and days of WC from 95 to 91.
Right now, their FCF as a % of EV is 32%...brilliant.

Going forward I note they have good headroom on their loan arrangements of around $13m + possibly unused facilities to acquire equipment and they have some $12m in cash after the acquisition. Conclusion: a very solid Balance Sheet.

If there has to be a gloomy issue it surely must be the dwindling margin, no doubt caused by the lower AUD in FY20 and the fierce competition.
However, as the biggest independent dealer with some $450m in likely sales in FY21, they have enormous purchasing power over the myriad of backyard dealers...so they should weather any further price wars better. Plus, people are now holidaying in Aus which means more rubber on the road and rubber has a habit of running out. Who ya gonna call?
Very solid company and I'd suggest the interim FY21 dividend might just reward the patient shareholders.