$Rocky Brands (RCKY.US)$Over the past 5 years, with the exce...
$Rocky Brands(RCKY.US$Over the past 5 years, with the exception of 2018, revenue has continued to grow for nearly 4 years, with an average growth rate of 30% and an average growth rate of 26% in the past 3 years. Net profit was affected by other expenses in 2021, and declined slightly for 2 consecutive years in 2022 due to interest expenses. Interest expenses in 2022 accounted for 41% of operating profit, which is a very heavy burden.
The balance sheet shows that accounts receivable rose sharply in 2021, from 0.05 billion to 0.08 billion to 0.13 billion, while annual revenue was only 0.514 billion, net profit was only 0.02 billion, and inventory increased 0.15 billion to 0.23 billion from 0.08 billion. This figure is outrageous, because revenue growth during the same period was only 0.24 billion, which means that increased revenue was either In inventory, either in accounts payable, or not in accounts, this also makes the high increase in operating profit seem unreal.
Receivables improved in 2022, falling to 0.096 billion, but inventories are still at a high level of 0.24 billion.
In 2021, in order to cope with the double impact of accounts receivable and inventory, long-term loans increased from 0 to 0.27 billion, and declined slightly to 0.25 billion in 2022, still higher than net assets of 0.22 billion.
Net cash flow was higher than net investment in the first four of the five years, but in 2022, both had significant net outflows, and overall no shareholder surpluses were generated.
The current price-earnings ratio is 9.5, which is unattractive.
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