PharmChem Laboratories Inc (PCHM)

[LMLYP]

Here's what matters to me on a Sunday night.

(1) https://investorshub.advfn.com/boards/read_msg.aspx?message_id=159203132

Management has made excellent day to day operational decisions, and our operating margins have increased every single year.


LMLYP Thursday, 10/29/20 05:36:39 PM
Re: deet49 post# 2883 0
Post #
2884
of 2920
Look at these operating margin trends.

2012 3%

2013 7%

2014 18%

2015 20%

2016 25%

2017 26%

2018 28%

2019 29%

2020 First Half 33%


(2) Current Ratio: Current Assets divided by Current Liabilities

Look at these current ratio trends.

2013 5.7

2014 5.4

2015 5.5

2016 6.1

2017 6.9

2018 7.9

2019 8.8

2020 (1H) 8.8

These are significant changes. For a recent example:

2018's balance sheet was 5,853,060 in current assets, and 744,177 in current liabilities.

2019's balance sheet was 6,915,758 in current assets, and 785,275 in current liablities.

The year over year change was a 1,062,698 increase in current assets and a 41,098 increase in current liabilties Think about that for a second.

One thing I will project is the current ratio will be higher than 8.8 for 2020, the sixth consecutive year of improvement in this measurement.

Who even has a current ratio of 9?

The company has not seen the need to deploy their capital, they are excellent stewards.

Move that dividend up by another two months. There is way too much cash on the balance sheet.

In the next letter, the company might help educate us by being more transparent in a "what if supplier scenario" occurs as well as addressing leadership continuity for the next generation of shareholders.

How lucky are we that they remain on the pink sheets.