I don’t agree with your comment that…Cash receipts are exceeding sales - meaning late payments are coming in. However, cash receipts cannot exceed sales over the long term. This is not a sign of a turn around in my view.
It is true that late payments have come in during the quarter but it clearly says that over due payments were reduced from 3M to 1.8M over the quarter so only 1.2M can be attributed to cash receipts for the quarter for late payments. It is good business practice to be proactive to reduce overdue payments so to manage this better going forward is definitely a tick for better money management.
To come to your view you have either overlooked or do not understand the difference between orders, sales, cash receipts and revenue.
Is it not feasible that orders have a prepayment which is a cash receipt that precedes a sale? Wouldn’t that be good business sense?
If orders are increasing and you have a prepayment amount and you keep overdue payments under control, technically you can have cash receipts being more than sales on going long term. It is actually the business model you want.
- Forums
- ASX - By Stock
- HLF
- Ann: Quarterly Activities/Appendix 4C Cash Flow Report
Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-24
-
- There are more pages in this discussion • 132 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add HLF (ASX) to my watchlist
|
|||||
Last
0.7¢ |
Change
0.000(0.00%) |
Mkt cap ! $2.805M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Featured News
HLF (ASX) Chart |
Day chart unavailable
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online