I asked this question a few months ago, but I did not get a response. Everyone mentions that ACRI is in a better finacial situation then ever. The cash is at a high. My question is why did net working capital decrease from $64 million in March 2001 to $52 million in September 2001? Does anyone know the answer.
Also, I stumbled across a biotech company with the symbol AVN. It looks interesting to me. Does anyone have comments on this as well.
The following is from Edgar online (see http://biz.yahoo.com/fin/l/a/acri_qb.html), where "tot. assets" is total current assets and "cash + s.t." is the amount of that that is cash and short-term investments.
Thus, as of Q3, ACRI had the most total current assets ever and the most cash and short-term investments ever. Current assets are just the short-term, liquid assets and don't count the long-term assets. Also, they have almost zero debt ($800k only).
Thank you Morrrrden and Is_This_Hype_Or_What for the response. However, I am not sure that I got my answer.
Morrrrden - As I am sure you know, Net Working Capital is simply current assets minus current liabilities. The reason it decreased in Q3 is because current liabilities increased and not because current assets decreased. I am curious what the liability is?
Is_This_Hype_Or_What - I do not think that the in-the-money options caused Net Working Capital to decrease. The operating expense would impact the P&L and Equity, but I can't imagine how it would impact current assets or current liabilities.
I think Net Working Capital is a better measure of the company's strength than simply cash.
Also, if anyone is familiar with Avanir Pharmaceuticals (AVN) I would be very interested to hear your comments. Their Yahoo board has a lot of activity, which I also thought was interesting for a small company.
I believe you can find your answer in the "non-cash" operating expense that CBMX was forced to take from a step-up in value of the "in the money" options. The accountants appear to have taken this as an "operating expense" and hence the net working capital decreased by that amount. HOWEVER, the NET cash flow for the company was postive for Q3.