Originally Posted by
Snoopy
I couldn't help noticing a few things about the HY2021 Warehouse balance sheet.
1/ Inventory was down $83.6m or more than 14% on pcp. This is explained as good sales over Christmas. But if that level of sales is to continue this year, the WHS will have to spend $83.6m to bring their inventory back to previous levels.
2/ The difference between 'trade and other receivables' and 'trade and other payables is a whopping: $86.1m-$501.6m = $415.5m. I guess not paying your bills is one way to increase the cash in your bank account?
3/ I notice the 'lease liabilities' exceed the 'right of lease assets' by $910.1m - $751.4m = $158.7m
So adjusting for those 'hidden debts' and subtracting the cash on hand gives a net debt position of:
( $83.6m + $415.5m + $158.7m ) - $183.6m = $473.3m
That net level of operational debt is of the order of 3 times net profit. Nothing to be concerned about, but it would be misleading to say the company was 'debt free'. I would class WHS as having a medium level of indebtedness, based on that HY2021 balance sheet.
SNOOPY