Posted On: 02/17/2016 6:03:15 AM
Post# of 96891
Re: STEEL PENNY #52639
SP-
There are no details to what the aging is related to AR on the balance sheet. Therefore, we don't know what AR is related to Q4 vs previous quarters. Most businesses have an average AR of less than 60 days, but sometimes a few lines that may be older.
What we don't know is the payment terms that ntek has with the credit card companies. I would assume most, if not all, of revenue from Media operations is transactions with end users who pay by credit cards. I would think that cash cycle would be rather short. Does anyone have business experience working with cc companies?
For the 4k studios, I would think this is where work is being done to convert movies and billed out to studios. Working with large companies means playing by their rules. This could mean payment terms of 60 days or longer. In my industry, we are seeing large customers demand terms of up to 90 days.
Good to see revenue up albeit marginal considering the promotions, but I'd rather see the cash position grow considerably instead of AR at this point as we're a growing business and need cash to help sustain growth.
Regards,
kbulldog.
There are no details to what the aging is related to AR on the balance sheet. Therefore, we don't know what AR is related to Q4 vs previous quarters. Most businesses have an average AR of less than 60 days, but sometimes a few lines that may be older.
What we don't know is the payment terms that ntek has with the credit card companies. I would assume most, if not all, of revenue from Media operations is transactions with end users who pay by credit cards. I would think that cash cycle would be rather short. Does anyone have business experience working with cc companies?
For the 4k studios, I would think this is where work is being done to convert movies and billed out to studios. Working with large companies means playing by their rules. This could mean payment terms of 60 days or longer. In my industry, we are seeing large customers demand terms of up to 90 days.
Good to see revenue up albeit marginal considering the promotions, but I'd rather see the cash position grow considerably instead of AR at this point as we're a growing business and need cash to help sustain growth.
Regards,
kbulldog.
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