Hi,
by doing an assignment on the financials of a cable tv corporation (think AT&T, Comcast, Time Warner Cable...) a few questions came to my mind and I hope somebody will be able to help me!
I noticed that they all have very low Asset Turnover (circa 0,4). Is there any technical explanation for this? Is this a big problem? (I studied that a good value should be above 1,2...)
The liquidity seems very bad too: current ratio on average of 0,8 and there are constant negative values of working capital. Again, as it seems something that characterizes more than just a company, is there any particular reason? Is it a source of trouble? (considering that they have a very cheap debt, good interest cover...)?
In the balance sheet under CL, a small part is current debt, we have 0 as payables and a lot of "other current liabilities". What are those exactly?
Thanks
