NTG Clarity Networks Inc V.NCI

Shareholders Should Be Cautious Despite Solid Earnings

[G1945V]

Read in Simply Wall St: https://stocks.apple.com/AF2tYJepnQxaTlaaO-dC3OQ



G1945V

[TradeWhisperer]

So everyone is aware, the Simply Wall St articles are just computer generated garbage. Google it. This article is talking about the accrual ratio from cashflow....i've never once heard of that. And this article is from a few weeks ago. Why would you post this the day NTG announces another major contract win. Their second largest ever at $22m.

[G1945V]

Trade and other receivables (Note 11) in the financials are $16,069,097. I am concerned that over $2 million are "contract assets" in the receivable.  "A contract asset is a term defined under IFRS 15 (International Financial Reporting Standards) and represents an entity's right to consideration (payment) for goods or services that have been transferred to a

[TradeWhisperer]

This is standard for any service based businesses. And represents a mere 13% of total receivables. Using this is a reason to say "investors should be cautious" has zero rationale. But ok.