Riding a bucking horse
Early 2022, economists were predicting a tougher business climate. Inflation was rising, interest rates rapidly climbing, low unemployment. I blogged about it in September, and what we as a company had been doing about the uncertainty. It has been a business climate that, like a bronco, tries to throw you off your game. Since September, the picture has not become any clearer and in fact sporadic orders and supply chain have made the ride a little rougher than normal.
As a Baby Boomer who did experience the crazy inflation of the early 1980’s, we paid attention to what was being predicted, and steps one should take in high inflationary periods.
- Keep an eye on your Account Receivables
- Watch your inventory levels
- Be mindful of your Account Payables and manage them
- ***CASH IS KING***
Well, five quarters later, we can report that we are sitting pretty well. Looking at numbers comparing Y-O-Y levels:
- Our receivables (AR) are down 25% and all customers are up to date (although in general they are pushing due dates, sending funds on the due dates rather than us receiving them).
- Inventory is flat (up 6%) (we have a short-term focused demand right now)
- Current Liabilities (Account Payables) is down 39%
- Cash is up 34%!
Notable is, we continued to invest in ourselves. Property, Plant, and Equipment (PPE) is up 105% and Total Assets are up 13%. Did we finance to increase PPE? No, we did not. Long Term Liabilities dropped 10% and Total Liabilities dropped 25%.
PlastiCert stayed on during the bucking and is now galloping along. Prepared for whatever the economy throws at us. We have picked up two new customers recently and were awarded new mold builds, despite the continued talk of recession.
How is your injection molder doing? Do you even know? What happens if you ask them?
Consider moving to a molder that lives by the motto, MOLDING YOUR FUTURE. As our website professes, we are here to make you look good. PlastiCert is here for the long term, keeping an eye on our interests and yours. PlastiCert can be your answer to forgetting about molding issues and focusing on other things that are keeping you awake at night. Give us a call!