The company that I'm studying (a start-up in the Computer Services subsector) is sitting on a lot of cash. Actually it's so much that it exceeds the total capital and total debt with interest obligations thus bringing it's ROIC below 0, even if its profits are on the positive.
I'm interpreting that at this point the suppliers are crediting the company or that the clients payed in advance for the services that are about to be provided. In this case, I think that either the cash and equivalents can be assimilated with a current loan of 0% interest and added to the debt or I should ignore cash entirely.
Submitted September 10, 2021 at 07:10AM by OppositeFingat https://ift.tt/3jUYxex
