https://www.bbc.co.uk/news/business-47626280Former Staples chain Office Outlet in administration
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https://www.bbc.co.uk/news/business-47626280Former Staples chain Office Outlet in administration
Not necessarily the case here, Wren has a lead in period whilst items constructed and materials are relatively inexpensive with very reasonable mark up...pabenny wrote: ↑Fri Mar 22 2019 6:42amWithout wishing to appear nit-picking, the linked article refers to growth in profits but says nothing about their bank balances.
Growing businesses can be profitable but go under because of lack of cash (probably not the case here). The trouble can be that the cash is tied up in stock, in receivables or has been over-invested in equipment, leaving nothing to pay the wages or suppliers.
Most larger businesses have a moderate level of debt by choice rather than it being a sign of distress or difficulty (if you really want I can explain the rationale).
Constantine wrote: ↑Fri Mar 22 2019 10:01pmWren filed their 2018 accounts 4 days ago. They had £52m in the bank.
Although it's true that Wren do have ample cash in the bank, part of my point was that this is not stated in the article. People often conflate cash and profits and likewise debt and losses.hugginhill wrote: Wren filed their 2018 accounts 4 day ago. They had net current liabilities of £61millon.
Agree. Although if I was to pick just one figure, it would be cashflow. Specifically cashflow from operations.hugginhill wrote: Picking single figures from a set of accounts is stupid.
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