Other Assets & Liabilities - currentSo I'm always reviewing Bombardier's financial statements. I'm not an accountant so there could be mistakes. Also, these are the responsibility of management.IMO, management is trustworthy ie we can trust these statements. This review is for the June 30,2022 statements available at Bombardier.com or sedar.
Today I turn my attention to other assets and liabilities (financial and other and provisions as well). Overall, I would say this is under control. This was not always the case - you can go back and look at years ago statements to confirm my opinion.
In this first part, we turn our attention to the current portion. Current means these assets and liabilities and will turn into cash (for the assets) and use cash (for the liabilities) in the next 12 months. Since we are reviewing the June 30 # ie halfway thru the fiscal year, some of these will "transact" this fiscal year and some next fiscal year. Bottom line, this will affect cashflow in the next 12months.
I think its important to separate these from the long term portions because this affects cash and will be off the balance sheet in the next 12months.
So for assets, we have $482M for Other financial assets and $147M for other assets for a total of $629M. There's no point in going into the details of these as these are management's estimates essentially of what will turn into cash at some point you have to trust them. Liabilities (and provisions) total $756M ($282M + $370M + $104M).
Therefore, liabilities exceeds assets by $137M which means in the next 12 months per management's estimates, the combination of these assets and liabilities will consume $137M of cash. Remember that since these are already on the balance sheet, it has no effect on the income statements.
Opinion: This is fine. Because If you take the 6 months capex (not an expense) and depreciation (an expense), you have a "surplus" of $65M ($190M depreciation vs $125M capex) which if I extrapolate to 12 months, gives a surplus of $130M. Which means that excluding tax and pension (which is non cash) and working capital changes (which does affect cash), the company's cashflow is approximating the income statement.
The other thing this means is that current wise, I only concern myself with 4 asset line items - cash, Receivables, Contract assets and Inventories - and for current liabilities, 2 iline tems - payables and contract liabilities which is what is meant by working capital.