Thinkin a bit more on Oz v SBB as retailers....
An argument could be put that retailers should have significant debt...compared to keeping a large amount of cash in the bank....
The issue is that the Balance sheet should be workin to increase sales/profit.......rather than having a large cash balance...sittin in a bank getting min interest..
Say a Lazy balance sheet v a hard working balance sheet....
SBB does have a Lazy balance sheet compared to OZ retailers.....
The Sargent Pepper retailer has debt....small amount of cash and targets a payout of around 80% of nett profit as a divy ......they are doing the same thing as SBB ie...increasing owned stores introducing a online sales channel and decreasing the wholesale side of the bussiness...
There balance sheet is hard working to benefit shareholders...from what I have been able to research.
SBB has a Lazy balance sheet in comparison...but a much better growth profile than the Sargent Pepper lable..
I suppose its comfortable to see all that cash sitting in the bank and no debt....
Just the same.
Dyor
SBB Price at posting:
5.5¢ Sentiment: Hold Disclosure: Held
