Let’s say a company had 100 million in accounts receivable and 20 million in accounts payable, or alternatively, 20 million in accounts receivable and 100 million in accounts payable—would you still agree that the net debt is still 22 million?
When it comes to calculating EV in Duell’s case, it is a poor metric because it takes debt into account but ignores the inventory assets, which are still worth several times more than the market cap..
The covenants were tight for a moment in Q2 six months ago after an historically poor winter, and they got through that without issues. Now, Duell’s debt level after Q4 is lower than it has been in a long time, and you think there is going to be some problem NOW? 