Replies to post #83390 on Expo Holdings Inc. (EXPH)

[EarnestDD]

Not per finanicals.
Gross margin percentage only 15%.
$400k in inventory is only $460k in sales, ignoring all other overhead costs associated.
jmo

[Han2004fl]

How about admin costs, overhead costs, interest, rent etc? Do they have enough margin to cover that and make profit?

Businesses can turn $10000 into $1 million but if other expenses are high then there is no room for profit.

[Acc441]

What is the rate of expense regarding invoice factoring in EXPH world? TIA

[grits142]

Excellent question Acc441. I could be way off but I think the typical first installment is 70%-90% of gross value of the invoice. If the invoice is paid within 30–60 days by the customer then the second installment is the balance minus the finance fee. Does anyone know if EXPH is factoring? This is both a plus and a minus. The plus being it keeps cash flow moving the minus being it cuts into gross margins. JMHO