RE:RE:Quick look at F/SHey stock. The Inventory sitting at the completion centre is great and the right place for it. Especially the expensive G7500. Our profit is in the G7500's. Hopefully the supply chain on the Engines doesn't slow down the deliveries.
stockitnow wrote: Martel made a comment that all Global 7500 that are to be delivered in 2024 are already at completion center. That's a lot on inventory cost sitting right there.
Bombardier is spending on inventory to safe guard it's delivery commitment. If they didn't then delivery numbers would be much less.
Hitting delivery target is not only great for predictable revenue generation but customer commitment too. Not able to deliver as planned hurts customer scheduling and loss revenue for them.
BBDB859 wrote: Finally 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.