Quick look at F/SFinally had a quick look at the financial statements.
We've increased our "shareholders Equity" by close to $1B from 2022/Q2. Our current S/H deficit sits at $2.1B. So according to this pattern then we should reduce our S/H deficit by another $1B in the next few years? We should have around $1B deficit by 2026. This pattern is great given where were, at around $9B deficit in Dec 2020.
My feeling is that if we can bring the LTD down by another $1.5B by the middle of 2026. We should be at close PAR/EVEN in "Shareholder Equity". At worse $500M defecit. I know that's not a lot. But given where we were at $9B in the hole in 2020, we're doing fine. This is a must given that we want achieve Investment Grade.We still won't have any equity for the B shares in 2026. But at least we'll start to get some stronger S/H Equity from 2026 on. This is going to come from both LTD reduction efforts and build up of PP&E. Some small acquisitions could help in that regard.
I also noticed that Y/Y we've increased our Inventory by close to $600M annually, and we've reduced contract liabilities by $100M. This slow reduction in C/L is in part due to the higher costs of trades and parts Inflation persisting. The other notable was that while we've increased our Inventory by $600M from Y/Y as mentioned above. So this shows us that we now know where our $600M in Inventory Investment is, for Q1 & Q2 of 2024. Finally I'm seeing things starting to balance, and make sense in these categories.