Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-45

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dyeman

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01/02/23

17:50

Post #: 66012856
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Originally posted by investig8 ↑

It has been a perennial question regarding the collection of Cash v's ACV.
Frustrating as it is, the continual SP fluctuation as investors/shareholders flog the stock for the lack of cash collection has almost become a quarterly meme.
At the last AGM, (if memory serves me correctly) Ian said the company had around 100 business as customers.
To be truthful, that is not many clients and I would guess that a small number of these clients represent the majority of their stated ACV. It would not take much to affect cash collection if say 3 to 4 of them (for internal business reasons) where late in paying their invoices. There is at times a fine line to be played pushing for collection and pissing a customer off and losing them for good.
It took me a while, but I found the ASX price query back in Feb 21 where 3DP explained their calculation of ACV https://hotcopper.com.au/posts/50872889/single
For those new to 3DP it may be worth a read.
My reading of the tea leaves; 3DP needs a larger client base before payment cycles smooth out. At the moment, they are way to reliant on a few large customers paying their bills.
Yes, cash collection is a red flag and is worthy of watching but I still see no need for me to sell out as my original investment thesis stays intact.

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In accounting terms ACV shouldn't really matter - if they are owed cash that has been invoiced, then unless customers refuse to pay (bad debt), then the unpaid amount should still show up on the balance sheet as income.

We will find out in the upcoming half-yearly...

3DP Price at posting: 18.0¢ Sentiment: Buy Disclosure: Held
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