I was wondering if you could share what you include into working capital? I have been trying to get the same number as you but without success.
For instance, looking at 2021 with "actif circulant" of 129 meur, and payable 63Meur + other debt 6meur, would give 129 - 63 - 6 => 60. But you've mentioned 23Meur. I'm looking at the consolidated financial for the group here: http://www.connect-we.com/img/cms/We.Connect_Comptes_consolides_2021.pdf
I do not include cash and marketable securities in working capital. My working capital calculation would be inventories + trade receivables + other receivables - trade payables - other liabilities.
On the topic of WC and especially the jump from 10 to 20% of sales in 2022, have you consider this could possibly be the impact of dyadem/octant. It seems possible those would have had a sub-optimal WC management and could be responsible for the increase we've seen in 2022.
It was something that happened across the industry, you can look at other similar companies and the same thing happened to them, it is not specific to WE Connect.
I was wondering if you could share what you include into working capital? I have been trying to get the same number as you but without success.
For instance, looking at 2021 with "actif circulant" of 129 meur, and payable 63Meur + other debt 6meur, would give 129 - 63 - 6 => 60. But you've mentioned 23Meur. I'm looking at the consolidated financial for the group here: http://www.connect-we.com/img/cms/We.Connect_Comptes_consolides_2021.pdf
I do not include cash and marketable securities in working capital. My working capital calculation would be inventories + trade receivables + other receivables - trade payables - other liabilities.
On the topic of WC and especially the jump from 10 to 20% of sales in 2022, have you consider this could possibly be the impact of dyadem/octant. It seems possible those would have had a sub-optimal WC management and could be responsible for the increase we've seen in 2022.
It was something that happened across the industry, you can look at other similar companies and the same thing happened to them, it is not specific to WE Connect.
Thanks for pointing that out. I checked it out and indeed Also and Td synnex have seen increase in 2022, they haven't been as pronounce tho.
Also, do you have any opinion why it raise much faster than comp? also is aorund 4%, innelec 6% and synnex 7%
It might have something to do with higher growth, but I can't answer that.
That make sense and thanks again for the write-up very much enjoy the didactic approach to accounting.
I just know stumble upon this write-up. This is very impressive and thorough work. Thanks for taking the time and effort to put this together.