The company does has not generated any positive operating casflow and the debtor days are consistently increasing. What do you think of these two factors? How do they affect your thesis?
Fair point, but I’d look at it in context of the company’s current hyper-growth phase. Working capital can temporarily absorb cash as receivables scale with revenue. The key is whether debtor days normalize as the business matures. For me, this is a monitorable rather than a thesis-breaker at this stage.
The company does has not generated any positive operating casflow and the debtor days are consistently increasing. What do you think of these two factors? How do they affect your thesis?
Fair point, but I’d look at it in context of the company’s current hyper-growth phase. Working capital can temporarily absorb cash as receivables scale with revenue. The key is whether debtor days normalize as the business matures. For me, this is a monitorable rather than a thesis-breaker at this stage.
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