Okay, so let's have a look at the working capital position of Smithy. We're gonna start with the inventory, and when we look at the inventory days on hand, there are over 100 days, 100.6 to be exact, which sounds like a rather high number. Out of that inventory, 3.9% is obsolete. That's not a surprisingly high number I guess for a manufacturing business like this. There's some promotional inventory in there, and there's some work-in-progress and raw materials, 12%. Out of the inventory though, 79.4% is sellable finished goods. So it suggests to us that inventory is sitting on the balance sheet for quite a long time before it's being passed on to customers, 100 days. However, this is a manufacturing business, so I'm not too surprised.

The accounts receivable total days outstanding is 42. Not a hugely surprising number. There is a slightly worrying 32.6% of those that are outstanding for longer than 90 days. However, again, this might not be terribly surprising for a business like Smithy. So overall, it takes 42 days to collect the money after inventory is sold, it's held in inventory for 100 days, so overall, 142.6 days here. If we finish now the working capital cash cycle, and add to that the payable days of 49, so Smithy waits for 49 days before they pay, we get a cash cycle funding need of 94 days. That sounds rather high, but is this a big problem for Smithy? Well, first of all, it is a manufacturing business and we would expect rather high levels of working capital in the business. And secondly, and we take this one step further, if we look at the short-term debt and the amounts drawn are the revolver for Smithy, it's very low. This suggests to us that this is not a surprising level for Smithy. This is something they have planned for and they have long-term funding in place to fund the working capital position. So I'm not gonna worry too much about the working capital here.