Jonathan Penn

@SecretCFO Could you make the spreadsheet available to access pls?

Working capital is the most underestimated force in business. Let’s imagine you have a business running at $ 500k per month of sales. All of a sudden you experience a breakout moment: - 15% sales growth month-over-month for a year - With a net income margin of 10% Extending that growth will lead to a total of $14.5M sales in the first year and $1.45M net income. Now make some working capital assumptions: - Days Sales Outstanding (DSO) of 30 Days - Days Inventory Outstanding (DIO) of 30 Days - Days Payable Outstanding (DPO) of 30 Days i.e. a Cash Conversion Cycle (CCC) of 30 Days: (DSO + DIO - DPO). Despite the $1.45M profitability, the business won’t generate any cashflow in year one. In fact it will outflow ~$375k of cash over those twelve months as it lays down the additional working capital needed to react to the growth. Now, lets run some scenarios (see the image) assuming that same business starts with $ 1M of cash on the balance sheet: If we assume the same dynamics, but instead imagine the business had poor inventory control, and ran on a CCC of 90 days. That same business would now have a negative cash balance of ~$3m by Christmas… or more accurately would be dead by June. And at that CCC, even if the business 2.5x that net margin to 25%, the business would still run out of cash in 9 months (that is despite now generating ~$3.6M of profit). Now imagine the opposite were true, the business, ran on a negative CCC of 60 days, funded by a willing supplier; with very tight inventory and receivables levels. In this scenario, even if the net margin were only 5%, the cash balance would explode to over $ 5M (positive) by the end of the year. In fact, at a negative 60 days CCC, even if the business operated at a 25% net loss margin, it would still survive the year (just about). This illustrates how much more sensitive working capital (and cashflow) is to changes in the business, than any profit metric you can choose. I call this effect: The Cashflow Megaphone. And as a long time turnaround CFO, understanding this inside out was the most valuable technical weapon in my armory in bending broken cashflows back into the black. And in times of volatile trading and macro conditions, these dynamics are more important than ever (especially when supply chains are gummed up like they are right now)

@talkcentss Are you referring to potential threats in Mexico as a host city following the narco violence last week?

@jonny_penn Not concerned about the current situation and potential threats that may arise in the host country?

@GTalevi I just read that same thing on News 24 this very moment. And then it struck me, the Mayor’s most logical response to this crises will be a name change for Johannesburg

You have to read today’s News24 story on Joburg’s water crisis to understand how pathetically reluctant and out of their depth Mahlobo, Morero and Lesufi are. Absolute cracker reporting. This just sums it up:

@HowardFeldman Im just shocked they would pay a PR company to produce this mediocre letter, when they could have used Chat GPT for free

How NOT to take responsibility...Roedean teaches its pupils that instead of learning from an ugly incident, that it's OK to lie and blame others... anyone who keeps their child at the school should reflect on the values they are learning..

@BigDaddyLiberty As a CA(SA) and a Certified Personal Finance Counsellor, I have written a book that deals with this extensively. You can download it for free themoneyguy.co.za/book

Here’s a topic…DEBT COUNSELLING: Let’s talk about this. Have you ever used this service, and did it help you get debt free? How long did it take you? Which service/company did you use, and would you recommend them and the process? A lot of us are sinking in debt (me included), and are too proud to admit we may have a problem….even as the “quick sand” of high interest debt sinks us further in. Let’s solve it.

champagne taste on a beer budget 🥂 the "middle class" dream in South Africa is being shattered by massive, expensive debt those taking home R35k+ a month have a debt to income ratio of 185% ‼️ nearly 80% of take-home pay is used to service debt (Debtbusters, Q2 Debt Index)

Gambling accounts for over half of household spending on recreation, sport & culture! 54,5% 😢😢😢😢😢 The impacts of gambling are dire and law makers aren’t doing enough in my view!

@Jonathan_Witt Me too!

This film damaged me.

@SamuelSokol I’m turning 42 this Friday. Literally thinking the same thing !!!

היום אני בן 42. מה לעזאזל קרה?

Most CEOs discover financial problems 90 days too late... Not anymore 📈 Never miss a financial warning sign again with all critical metrics in ONE dashboard. ⚠️ And you can get it for free in the next 48 hours! This Financial Health Dashboard tracks everything you need: 📊 ➡️Overall Status: Good/Critical indicator 🟢🔴 ➡️ARR: Track recurring revenue growth 📈 ➡️Gross Margin: See profitability at a glance 💰 ➡️Working Capital: Monitor operational runway 🏦 ➡️EBITDA: Measure true operational performance 📋 ➡️Net Margin: Gauge profit efficiency 💸 ➡️CAC: Control acquisition costs 💲 ➡️Cash Out Date: Know exactly when you'd run out of money ⏱️ Why CEOs love this dashboard: → Color-coding shows problems instantly → Comparison to last quarter built-in → All metrics update automatically → One-page view for quick decisions Grab it FREE for the next 48 hours: 1. Like this post 👍 2. Comment "send" below 💬 3. Repost this tweet 4. Get immediate access 🚀 (Must follow, otherwise I can't DM)

@YourCFOGuy send

@AmitSegal @grok Did PM Netanyahu vote against the 2005 Disengagement plan

The IDF began a major operation overnight in Rafah, with Israeli soldiers working to separate Gaza’s southernmost city from the rest of the strip. Why? It may well be to create a corridor for Gazans to leave for other countries via the Rafah Crossing. But that’s not all. This morning, Defense Minister Israel Katz announced that as part of the IDF’s expanding operations, it will “capture extensive territory that will be added the State of Israel’s security areas.” The Netanyahu government, it seems, is intent on following through on its threat to annex Gazan territory. Quick recap: Rafah has been a focal point of controversy throughout this war. Sitting on the border with Egypt, Rafah is home to the Philadelphi Corridor, a strip of land around eight miles long through which Hamas has smuggled inordinate amounts of weaponry via Egypt over the years. If Israel doesn’t control the corridor, it’s nearly impossible to stop Hamas smuggling in weaponry from the Sinai. Did you know? This exact scenario was predicted by Prime Minister Benjamin Netanyahu prior to Israel’s 2005 disengagement from Gaza. After resigning from then-Prime Minister Ariel Sharon’s cabinet, Netanyahu slammed the planned withdrawal from the Philadelphi Corridor, mocking Egypt’s promise to prevent smuggling as “so clumsy that it’s tragic.” Well, he was right. But not everyone learned the right lesson. In May last year, then-President Biden threatened to stop sending Israel bombs and artillery shells if it launched a major invasion of Rafah. Israel did so anyway—and we should be glad it did. So far, Israel has retrieved nine hostages from Rafah—six dead and three alive. October 7 mastermind Yahya Sinwar was also killed by Israeli soldiers—in Rafah. 📷: @idfonline

Another one of our @TheBabylonBee prophecies fulfilled

"We Want Hitler" - Councillor Nkounkou, a member of the executive of the City of Joburg. Hate in South African Politics is real, and this member serves at the behest of a @MYANC Mayor, @CyrilRamaphosa this is why @realDonaldTrump & @elonmusk want to sanction you and your party.

Greenland election results are a massive win for President Trump's push to annex the territory. Pro-US independence right wing party had the most shocking upswing from last election, securing 25% of the vote Neutral on U.S., pro independence right wing party took 30%. Leftwing pro independence, anti-US parties won a combined 36% of votes, down from 66% last election. Denmark is cooked. Referendum to become Americans may soon be on the table.

Let go of who you think you need to be and just be who you are.

@NadavPollak @JasonMBrodsky Just like when the IAF reduced Hamas’ capabilities in Gaza during four wars in 2008–2009, 2012, 2014, and 2021..

I have no idea if this report is true, but Ron Ben Yishai has good sources. I would say this though, these current airforce attacks, as effective as they are, are not reducing Hezbollah’s rockets/missiles arsenal significantly

⚠️ DO NOT EAT SALAD FROM WOOLIES A Melbourne man’s casual meal turned into a horrifying experience when he found half a mouse in his pre-packaged salad from a major supermarket. In response, the supermarket advised media queries that it was an 'isolated incident' and Clint the man who made the sickening discovery, has allegedly been refunded $5 for the purchase and offered a $50 voucher to the supermarket. No product recall or proper investigation. Case closed. Full story: rebelne.ws/3SsUIhq