Australia's largest stock trading and investment forum Australia's #1 stock forum

CTV

Click for more information

0.00%

0.8¢ colortv limited

Ann: EN1 Q2 2019 Preliminary Results Material Improvements, page-448

First 448 Last

Share
Profile

Follow
ASXspecialist

203 Posts.

236

19/07/19

03:28

Post #: 39591604
Share

Originally posted by djwally: ↑

perhaps I see your confusion. without a doubt EN1 will be 'profitable' later this year. I'm just not hanging on 'cash flow positive 4C's'.

the point I made in my earlier post is that they need to turn over about $4.8M in revenue to be 'profitable' in an accrual sense I.e in a P&L statement. I see very little chance they won't turn over in excess if $4.8M revenue in Q3. so they will be a profitable company at least on Q3 run rate. but I hope they reinvest this profit into future growth by buying more inventory which will show up as COGS for the next quarter. because of the lag in payment terms this means receipts (cash) is always lagging slightly.

so IMO there is nothing wrong with using debt financing to grow your revenue so long as your profit margin easily exceeds the financing costs. which it clearly does.

hope this makes more sense.

Expand

Thanks for the detailed reply. Much appreciated.

EN1 Price at posting: 3.9¢ Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

SMI

Gold intercept of 8.6 g/t continues the positive storyline for Santana at NZ's RAS deposit

Earnings wrap Monday Week 34: A2 Milk, Bluescope, Suncorp's climate woes & more

Good habits matters when it comes to finances

PR1

Fourfold skarn increase points the way to viable garnet project, says Pure

NOX

Noxopharm aims for autoimmune market with first human trial of SOF-SKN

There are more pages in this discussion • 38 more messages in this thread...

First 448 Last

Add CTV (ASX) to my watchlist