It seems, This_is_the_end, that I took your original post 23165 to mean that ALJ's loan repayment was already reflected in its latest Balance Sheet, which is why the numbers didn't seem to gel.
Unless I'm mistaken, the terms of that loan seem rather onerous insofar that the company gets penalised if they want to pay it back early !
If that's the case, it possibly explains why they sat with Cash on their Balance Sheet which they could have used to reduce their ongoing Interest Expense as reflected in their Income Statement.
Apart from their recent debt situation, the rest of their fundamentals, in my opinion, seem in good shape.
However, what do you think about the fact that their last Quarterly Revenue went up by about 10%, yet their Operating Margin fell by about 20%, with a knock-on 11% reduction in their Bottom Line ? |
