ELD General Discussion, page-427

I did study accounting but did not actually use much of it in anger- and my posts are mostly thinking aloud while I work out a company- so forgive me if it takes several posts to eventually state the obvious.

The ELD share price driver.

Short term debt and liquidity.

September 2022
Current Assets- Inventory divided by Current Liabilities, $1395m-$484m = $911m divided by $1048m. Ratio= 0.86, less than 1.
March 2023
$1585m-$614m=$971m divided by $1325m. Ratio= 0.73, less than 1.

The liquidity ratio is less than one and it is decreasing. I also took off the increase in inventory, on both sides of the ledger and derived a ratio of 0.70. So, the increase in inventory did not really account for the worsening liquidity ratio.

My conclusion, tentatively, is that creditors and therefor Mr Market are concerned more about ELD liquidity than seasonal/climatic conditions.

Be gentle with the above- am I getting closer to understanding ELD? Or does the above contain one or more howlers?

IMHO DYOR