Using value as context over bad debt gone awry isn’t the right...

Using value as context over bad debt gone awry isn’t the right way to assess.

If you’re a business with revenue of say 100 billion, 32 mill is not exactly material in the sense.

In this case for EHL with revenue of 750+ Mill it a different kettle of fish.

The other point to make, the disclosure on this 32 Mill is little. Shareholders have no idea the details behind this 32 Mill, management have not disclosed anything. It could be that the debtor is still theoretically solvent but in receivership. It could be that days outstanding on the debt is weighted average at 50 days, which isn’t as bad as one would think.

Unfortunately shareholders just don’t know.