MaeMode announced its earnings. It looked impressive when you just look at the earnings alone.
Last quarter, Maemode had net profits of some 3.261 million
Last night, MaeMode said it had net profits of 12.499 million for its 2011 Q4.
Sales revenue for the quarter surged to a very impressive 242.183 million
Net profit for the year stands at 18.577 million. Last fiscal year, Maemode only had net earnings of 6.895 million only..
However, if one looks at the bigger picture, it becomes so clear..
Despite the huge jump in revenues, cash at the end of the fiscal year decline to just 20.949 million.
Total borrowings rose to 368.224 million. Look at how total borrowings increase every single year.
And its total receivables soared to a mind boggling 441.227 million!
Sales increasing, cash declining and the total borrowings and receivables soaring each year.
How long can this last?????????????????????????????????????????
Would you dare to invest in such company?
And don't you wonder why the receivables are increasing so much every single year??
What's happening?
Have the auditors review if the receivables are collectible or not?
Worse still, have the auditors checked the validity of the receivables?
What if.............................. ????
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