Rosyoutlook,It has been remiss of me not to come back to you...

Rosyoutlook,

It has been remiss of me not to come back to you after you rightly pointed out that I had miscalculated some Working capital –to-Revenue ratios in an earlier post, to wit:
“(I think your 25% figure is wrong, maybe derived from 1/2 year revenue, not full year? Or maybe I have the wrong end of the stick. The measure I use is Debtor days outstanding)”

You were absolutely right, I was erroneously using only half year Revenue numbers.

I’m sure you will recognise that although ABOSLUTE ratios I calculated would have been incorrect, the TREND in the improvement in said ratios would still be directionally consistent with the point I was trying to make.

In terms of the your preferred metrics, namely Debtors Days, I’m sure you noted that at the end of JH12, DD remains stubbornly high around that 45 day mark.

The reason the cash flow was so strong in the half, (apart from the one-off $12m cash release from the OMSA JV), is that Creditor Days were pushed out to 23 days, from 18 days as at the end of DH11.

The reluctance to work the Debtors better, was one of the few warts in the result, I thought.

Best

Cam

PS. You're not an accountant by any chance, are you?