$Albertsons Companies (ACI.US)$ 🎯 2023.1.9 The current pric...

New data: 23Q2 and 23Q3. Revenue continued to grow, operating profit and net profit continued to shrink.

In the first three quarters of 2023, revenue increased by 2.5%, operating profit shrank by 12.3%, net profit shrank 13% to $1.05 billion, and interest expenses accounted for 23.3% of operating profit, increasing the burden a lot.

The balance ratio fell slightly to 90.5%, and the ratio of accounts receivable and inventory was very low. Long-term loans increased to 7.8 billion yuan, 3.1 times the net assets of 2.53 billion. The leverage ratio was extremely high. The liquidity ratio dropped to 0.81, the quick ratio was 0.13, and the cash flow was very tight

Net operating cash flow continued to be higher than net investment, and continued to generate shareholder surpluses.

Currently, the price-earnings ratio is 10.11. If net profit shrinks by 13% for the whole year, the price-earnings ratio will rise to 11.6%. Considering slow revenue growth, continued shrinking profits, and tight cash flow, we will temporarily withdraw from the sidelines.