PC Tech EKWB Scandal

[cusideabelincoln]

 

Intriguing investigation into what must be your not-so-uncommon corporate practices of upper management gaming the system for their own personal benefit. EK being the most prolific and reputable brand for custom water cooling parts seems to have been simply throwing their giant status around to bully employees, vendors, and customers instead of actually running a respectable business.

 

I found the highlight of the video to be the flow chart @ 28:05.  "Competency" means nothing; connections mean everything.

 

 

Here was part 1:

 

 

 

 

[Mr.Vic20]

Lovely!  

[Commissar SFLUFAN]

I've only been marginally informed about this situation, but from what I've read, it's pretty damned bad.

[AbsolutSurgen]

Based on this video, EK has a significant liquidity crunch.

The reason this normally happens, is when the revenue is not coming in when expected.  Slow paying cash is frequently what companies do when they have a significant cash crunch.

Given Steve's video, I suspect this will hit their sales even further.  I wouldn't be surprised of they cease to exist in the near future.  Without any of those bills being paid.

[Commissar SFLUFAN]

2 minutes ago, AbsolutSurgen said:

Based on this video, EK has a significant liquidity crunch.

 

The reason this normally happens, is when the revenue is not coming in when expected.  Slow paying cash is frequently what companies do when they have a significant cash crunch.

 

Given Steve's video, I suspect this will hit their sales even further.  I wouldn't be surprised of they cease to exist in the near future.  Without any of those bills being paid.

 

Yup - slow payment of vendor invoices is a sure sign of cash flow problems either from lower revenues or issues with the collection of receivables (which have already been booked as revenue) from customers.

[AbsolutSurgen]

2 minutes ago, Commissar SFLUFAN said:

 

Yup - slow payment of vendor invoices is a sure sign of cash flow problems either from lower revenues or issues with the collection of receivables (which have already been booked as revenue) from customers.

True, it could have been caused by one of EK's customers not paying them.

Nobody likes it when companies have to slow pay their suppliers, including senior management.  It's usually a choice between doing that, or closing their doors.

 

Of course, as usual, Steve doesn't really have any insight into what's actually going on in the business.

[Commissar SFLUFAN]

When I was a practicing public accountant, the statement of cash flows was the financial report that I paid the most attention to as I considered it the one that was the most important in determining the overall health of a company, far more than the income statement.

[AbsolutSurgen]

4 minutes ago, Commissar SFLUFAN said:

When I was a practicing public accountant, the statement of cash flows was the financial report that I paid the most attention to as I considered it the one that was the most important in determining the overall health of a company, far more than the income statement.

They absolutely both give you different info.  In terms of short/medium term viability the CF statement does tell much of the story.  I think EKWB is a private company though.