Australia's largest stock trading and investment forum Australia's #1 stock forum

SGH

0.00%

54.5¢ slater & gordon limited

That means Shine have an overstatement of WIP of 48% compared to...

First 898 Last

Share
Profile

Follow
fastenyourseatbelt

2,053 Posts.

9

18/01/16

22:52

Post #: 16820853
Share

Originally posted by fastenyourseatbelt ↑

I remember reading a quote from another poster on Shine. There is 2 WIP unbilled disbursements totallling 75% of their WIP.

I remember as i was turned off investing in it. It seems like they have been on the books for a while. Now they are writing it off.

Here is his comment in relation to it.

For SHJ The 2015 year ended with large amounts of WIP and unbilled disbursements. The amount I calculated is that these two amounts constitute just over 75% of the asset base. It's no wonder that free cash flow is significantly lower than EBITDA. I looked at the figures over the past couple of years, and there is no clear trend that this is improving.

I know that Slater & Gordon has been getting a lot of bad press recently, but comparing the WIP to total assets amounts to only around 27% - that's a significant difference.

So Shine seem to be overstating their WIP here comparing against Slater and Gordon standards.

Expand

That means Shine have an overstatement of WIP of 48% compared to Slater and Gordon in relation to FCF. They might lose a little SHINE when they drop their WIP 48% to get to Slaters 2015 ratios and if Slaters new CFO is more conservative they might need to go further to meet his standards.

Last edited by fastenyourseatbelt: 18/01/16

SGH Price at posting: 63.5¢ Sentiment: None Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

What's causing the cost-of-living crisis, and how to navigate it

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war