RE:RE:RE:RE:Working capital ratioHi wagyusteak
i will listen to the call and maybe have a chat with the CFO.
Our interests are aligned.
I was just a little shocked at the numbers on the slide deck. I took a very cursory look. Ideally we can let this note run to maturation, or get renegotiated with more favourable terms for the holders. I don't churn my holdings.
Cheers
Rad10
wagyusteak wrote: rad10 wrote: Check out the latest investor presentation. 6th or 7th slide in the appendix.
We all want this to work, but the market reaction seems appropriate.
wagyusteak wrote: rad10 wrote: 1.76 to 1.33
54 million additional net debt.
Cash available diminished by 24 million.
I hope they know what they are doing.
No surprise the market puked on the equity.
Long debentures.
Dude, the real debt here is your debenture and the term debt. Production financing should not be counted toward the leverage ratio. Buyers will pay for that when the projects are delivered. If you think big players like Apple, Disney, Netflix, are going to default tomorrow, then you are crazy. If they cancel the projects then I guess they have to pay for the penalties for sure. At this stage, I have very little hope for HBO and degrassi. But you know what, they bought the library so that's our money for sure. If they cancel, we or they will sell that rights to other players and everything will be fine. In the mean time, they will have to pay for the fines for violating the contract if they cancel.
It would be great if you show me how do you calculate your WC ratio as well as debt/ebitda, debt/equity
Yes. I did see it. But you are missing my points. You don't have to use cash to pay for deferred revenue (short-term liabitities). You just have to deliver the projects and it will be waived. That leaves us $220 mil from account payable, portion of long-term debt and leases. ALl of them can be paid immediately using short-term account receivable. the BS tells you all