So quarterly revenue $4.8mil. Let's say annualise revenue = $20 mil. Debtors $7.0 mil Debtor days = Annual Receivable / Annual Sales x 365 = $7mil / $20 mil x 365 = 127 days (or put another way 35% of annual sales are in debtors)
SAAS Business should be $0 debtors A half decent business = 45 days days payment But IME is at 127 days
It is really hard to run a business this inefficiently; to have $7.0 million in debtors when your sales for the quarter are $4.8mil. Absolute disgrace.
Debtors should be about $2.5mil. IME should have an extra $4.5mil in the bank.
Now they are going to do a capital raise at a massive discount because they cannot run their business efficiency. Just destroying shareholder value.
IME Price at posting:
62.0¢ Sentiment: Hold Disclosure: Held
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