Living hand-to-mouth on their own output: the company is currently consuming what it makes as fast as it makes it
The model's full reasoning — Q4 2015 call → NOWe need answer YES/NO. Need determine if management describes output consumed as fast as available, no cushion. Transcript: They discuss safety stock for new programs, inventory. Nick: "our safety stock for the programs that are in the process of ramping up rapidly, i.e., the A350, NEO, LEAP engines, we have not taken that safety stock down and really do not plan to until we reach more of a steady state, because basically, we are not being sole source. We need to make sure we protect our customers. So, that hasn’t decreased. With respect to other safety stock that we put in place when we are implementing the IT systems throughout the course of last year and other productivity initiatives where we needed to build a little back, we did burn a large portion of that off in the fourth quarter with a decline of I think about $21 million, right, Wayne? So, it wasn’t the new program development safety stock that was affected." Wayne: "safety stock for new programs is at the level where we want and – so it’s not increasing anymore." This indicates they have safety stock, not no cushion. They are building capacity. No mention of output moving straight out door. They talk about growth, ramp-up, but not that everything produced is immediately absorbed. They have inventory. So answer NO.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| BRBR | BellRing Brands, Inc. | Q4 2023 | 2023-11-21 | B+ |
| PRPH | ProPhase Labs, Inc. | Q1 2023 | 2023-05-11 | F |
| TACT | TransAct Technologies Incorporated | Q4 2022 | 2023-03-08 | A |
| PI | Impinj, Inc. | Q4 2022 | 2023-02-08 | B+ |
| JBHT | J.B. Hunt Transport Services, Inc. | Q2 2022 | 2022-07-19 | C+ |
| FLUX | Flux Power Holdings, Inc. | Q2 2022 | 2022-02-10 | D |
| VVV | Valvoline Inc. | Q1 2022 | 2022-02-09 | C+ |
| GTES | Gates Industrial Corporation plc | Q4 2021 | 2022-02-07 | C+ |
| EXP | Eagle Materials Inc. | Q3 2022 | 2022-01-27 | B |
| GFS | GLOBALFOUNDRIES Inc. | Q3 2021 | 2021-11-30 | A |
| SXC | SunCoke Energy, Inc. | Q3 2021 | 2021-11-01 | A |
| LOPE | Grand Canyon Education, Inc. | Q2 2021 | 2021-08-08 | C |
| WES | Western Midstream Partners, LP | Q3 2018 | 2018-10-31 | D |
| IRT | Independence Realty Trust, Inc. | Q2 2018 | 2018-08-02 | B |
| SATS | EchoStar Corporation | Q1 2018 | 2018-05-10 | C+ |
| RACE | Ferrari N.V. | Q3 2017 | 2017-11-02 | C+ |
| PLAB | Photronics, Inc. | Q2 2017 | 2017-05-17 | C+ |
BRBR · Q4 2023 → YESThe question is: Does management describe that what the company produces or provides is being consumed as fast as it becomes available? That is, operating without meaningful cushion, output moves stra...
PRPH · Q1 2023 → YESThe question is: Does management describe that what the company produces or provides is being consumed as fast as it becomes available? That is, operating without meaningful cushion, output moves stra...
TACT · Q4 2022 → YESThe question is: Does management describe that what the company produces or provides is being consumed as fast as it becomes available? Operating without meaningful cushion, output moves straight out ...