SGH has $470 million of work in progress on its balance sheet...according to my basic workings that is over 2 years of salaries and wages expense (based on salaries and employee benefits expense of $200m).
Also receivables of $200m is almost 50% of revenue.
Does anyone else find this concerning? In my experience, when things go badly for these type of professional services business that bill on time (engineering, construction, accountants etc) it is usually because WIP has been overstated.
SGH Price at posting:
$5.58 Sentiment: None Disclosure: Not Held
