Right - fishy stuff those increases in A/R and Inventories. I mean, revenue increases by 26% and A/R increases by 11% and inventories by less than 8%. That IS scary!
Let's see... acquisitions made but still no long term debt. They didn't provide a cash flow statement with the release but I believe the company is generating cash but used a little more than generated by operations to make the acquisitions (I think this is the cause for the jump in goodwill, which is higher than the decrease in cash).
They may have to slow down the acquisitions while they replenish their cash (assuming they don't take on some debt) but this does not imply poor cash flow or poor management. They just took advantage of good opportunities to make some synergistic acquisitions.
Your note is one of the rare ones that purports to make sense. Unfortunately, it is flawed. You compare YoY revenue incr to QoQ increases in receivables and inventory. In reality, the YoY increase in inventory is 35%, more than the increase in revenues.
Good point. You are correct. I did fail to note that the balance sheet was QoQ whereas the P&L was YoY. Not sure that makes me too worried, but I'll have to take a longer (and clearly more careful) look.