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theconnoisseur

theconnoisseur
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  • SunPower: Consistency Is the Name of the Game [View article]
    "My estimated available cash flow starts at $290 million for this year, which is very cautious."

    I assume that's cash on the balance sheet?

    My issue is that the business hasn't generated positive free cash flow for the last three years. In my projections, even despite rosy annual revenue growth projections of 50% per year and improved gross margins (in the low 20%), free cash flow remains negative for the next few years. The key issue is net working capital needs.

    The only way the company can climb out of this is by levering up, which I assume is in line with your statement "Cash flow should be significant after a large increase in liabilities."
    Feb 22, 2011. 11:36 AM | Likes Like |Link to Comment
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