Sep 30, 2009 | Publisher: zolti | Category: Other |  

Return to Analysis Summary If Receivables is going up, customers aren't paying their bills. But if Revenue is also going up Receivables will likely go up also--and Inventories as well. If either goes up faster than Revenues however, that's a danger signal. All three are expected to more or less act in concert. Return to Analysis Summary 2003 2004 2005 2006 2007 Inventory Receivables Revenues 2003 2004 2005 2006 2007 Revenue Cost of Sales PP&E Expect Sales to increase at or above the growth in Cost of Sales. Also, if Property, Plant & Equipment (PP&E) is increasing Revenues should also increase. PP&E might trail Revenues a year or two if the money is being spent on new buildings, etc.--large projects. Allow for completion time.



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