How FC financing works for BIG, page-248

Analogy: McDonalds makes burgers ahead of time. If not enough customers turn up to eat them before their expiry time, they are thrown away. If no customers turn up, how will McDonalds make money? Answer: they won't. Any business that has such a poor product that customers aren't coming in sufficient numbers to offset those that aren't, will go out of business.

So your question is probably better phrased this way: what are the rates at which customers refuse the product that BIG's profits erode? Is it likely that all the customers down to customer M (the thirteenth customer) will refuse the product? Is it possible that this only happens once, or multiple times? Is the product that bad that thirteen customers in a row refuse it, not just once but multiple times?

To answer this question, I look at the audited half yearly and the audited revenue numbers. I also look at the 4C for the cashflow. You can't lie about cash, whereas audited numbers can be (legally, and in accordance with accounting practices) manipulated to the point where it is not quite clear what is going on. Cash doesn't lie, but it is not revenue.

Somewhere between those two points will answer your question. IMO, so far they show a rapidly expanding customer base, with a large increase in ARPU and low churn (customers falling off and not returning). So I am happy at this stage with the way the company is going, despite the current issues.