I went back starting at the Dec '96 quarter and made an Excel chart with sales, receivables, payables and inventory on the same chart. I made this on a quarterly basis.
Using sales as a reference, receivables have the slowest growth. Inventory is next. The last Qtr had the steepest increase in inventory.
Payables came in as increasing the most.
The inventory does not look like It's in trouble. It will be several quarters yet before I could make a case for mismanagement in that area. Payables are going up steeper than sales... this should increase the cash position by delaying your bills. I'm not a bean counter so "cash flow" is a bit abstract to me. But I get the idea and will try to make some sense of that as well. Also, It's not wrong to call the company and just ask. They have a CFO and he should know exactly what cash flow is doing.
Since I took the time to put this all together it will be interesting to see how the Dec Qtr ends up. I'll try to remember to post an update to this after the Q is released.
Everything sure looks good to me. The growth rate is very good and seems to be managed very well. If the stock price continues to perform as it has I would think we could look forward to a split in the near term. That would be nice !
I don't like the massive increase in accounts payable, which makes the cash flows positive. I don't know what the company's sales history is, but an increase in inventory can be product not selling or a ramp up for increased sales in the next quarter. -RD
There are many factors regarding cash flow in the quarterly report but on the bottom line I see cash increased from 7M to over 11M quarter to quarter. How can that be bad? The only thing that keeps investors wary is the big price moves on so little volume. For example, this morning, 17K shares traded hands down 2 points. Thin market moves this stock for no real reasons, it is not news driven like the large cap stocks.