Thursday, December 26, 2013
"[Amazon has] what is called a 'negative cash conversion cycle'. They take in money before they pay suppliers. This means as long as your Revenue is growing, you will show the appearance of cash flow growth, when you are really just borrowing it as Accounts Payable. You have to keep the top line growing, otherwise, cash flow growth stops or reverses. If Amazon stops investing in growing the top line, the whole story unwinds. That is why they keep selling at zero margins. They need to keep the top line growing at all costs to provide the illusion of 'sustainable' Cash Flow growth."

The author, brother Dru, & our dad, Jim. Xmas day 2013, shore of Killarney Lake.  Photo by EC.

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