Tonto's Concerns..... What do you think Riley?
To: +Riley G (5185 )
From: +tonto
Sep 6 1997 6:47PM EST
Reply #5236 of 5238
Riley, with your advantage of looking at the books of sewers, will
you please some sense of OVIS's numbers.
I specialized in Latin America economics, most recently spent a year in Costa Rica with my family so that my children could learn spanish, and understand the countries and facilities.
What I have a concern with is the following data:
Quarterly sales, $1,500,000.00
Employees 600
I have requested direct info in Nicaragua regarding wages...
but for analytical purposes for the time being, let's make some conservative assumptions:
1 employee works 480 hours per quarter. 480 hours times 600 employess equals 288,000 hours.
$1,500,000 of total quarterly sales, divided by 288,000 hours, equals $5.20 of sales dollars produced hourly by each employee.
The "good old days" of super cheap labor no longer exists there. But, let's use a $2.00 per hour total labor and benefit package for the employees.
That leaves OVIS with $3.20 per hour to pay for all their materials,
electricity, water, telephone, freight, sales,building leases domestically and abroad, accounting and legal expenses,interest expense, marketing, insurance, travel, entertainment, equipment,maintenance, packaging,...
I keep reviewing the numbers and they just do not make sense.
I know this is a squeeze play that is underway, but, this company's
financial condition is horrible. Could this jeopardize the commitment?
Link --- techstocks.com
John F. |
