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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (36155)	9/28/2001 4:19:12 AM
From: milesofstyles	Read Replies (2) \| Respond to of 37746

softie, just wanna point a thing or 2 for you to look at. yes, the ebitda is 22m, but if you look at the long term debt that is currently due on the balance sheet, that is 27m. thus, i would guess they are not generating enough cash to pay off their long term debt obligations on a current basis, let alone the current amount due in payables. both are classified under "current liabilities" in all totalling 698m. intangible assets make up 49pct of the asset base. on the cash flow data, cash from operations on an annual basis has been negative. if you go a lil lower down, you can see the net cash they generate is thru financing and stock issuance. not operations. down at the bottom where the ratios are annualized, it appears, cash + receivables only covers about 44pct of the current liabilities.however, the recent infusion of cash has changed this ratio to date and things may have been serious enough that defaults would have occured without it. also, i think you mentioned they have a billion in cash, the qtr balance sheet cash acct is at 323m up from 80m the prior qtr. since the receivables are about the same qtr to qtr and we know they did not generate 240m cash from operations it seems further evidence this co exists as a result of financing, if you include the receivables, its 700m cash. the net change for long term debt over the last 2qtrs on the balance sheet is an additional 700m in loans. in general, it appears the cash is not coming from operations. and the 22m ebitda has little significance. my.zacks.com hope i'm wrong, good luck milesov