GREY:TSTIF - Post by User
Comment by
echo2on Dec 22, 2016 8:47pm
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Post# 25638157
RE:RE:RE:RE:substantially all Getinge receivables will flow through this
RE:RE:RE:RE:substantially all Getinge receivables will flow through thisTo reiterate what GoPats has said, this is very positive news!
This simply means TSO3 will have access to cash from receivables in their bank account at 3 days out from orders being shipped as opposed to having to wait for the 90 days to be paid. And, this just gives the company more rapid access to use their accelerating cash flow as capital and one would experience this need only if the company’s use of capital is accelerating (to build units mostly, but also to expand facilities, develop 80L, hire people, etc... ) faster than the 45 - 90 day receivables come in, in spite of the company already having a very healthy 20 M in the bank! While this facility should not be critical at this production level, it has been negotiated to allow for accelerating production and will be more important when the company is up to 250+ vP4 yearly production capacity in 6-12 months and the 20 M float needs to be buffered at the bank.
Thus, a very good sign!
Merry Christmas!