Working capital is the lifeblood of a company’s day to day operations
SmallCapPower | September 1, 2016: Net debt, as defined by subtracting cash and short-term investments from total debt, falls negative for the stocks on our list today. This implies that these companies have the potential for adding additional leverage to grow the business. Liquidity wise, these businesses are also well funded, having millions of dollars in working capital.
Figures in CAD millions.
Centerra Gold Inc. (TSE:CG) – $6.60
Centerra Gold Inc. is a Canada-based gold mining company focused on operating, developing, exploring and acquiring gold properties in Asia, North America and other markets across the world. Its Kyrgyz segment includes Kumtor Gold Co. (KGC) (Kyrgyz Republic), which operates Kumtor Mine. Its Mongolian segment includes Centerra Gold Mongolia LLC (CGM) (Mongolia), which operates ATO Project and Gatsuurt Project, and Boroo Gold LLC (BGC) (Mongolia), which operates Boroo Mine.
- Market Cap: $1,790
- Revenue (LTM): $664
- Net Debt (LFQ): -$559
- Working Capital (LFQ): $1,014
Celestica Inc. (TSE:CLS) – $14.09
Celestica Inc. is a provider of supply chain solutions in the communications, consumer, diversified, servers and storage end markets. The Company operates in electronics manufacturing services business segment, and offers a range of services to its customers, including design and development, engineering services, supply chain management, new product introduction, component sourcing, electronics manufacturing, assembly and test, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics and after-market repair and return services.
- Market Cap: $1,716
- Revenue (LTM): $7,651
- Net Debt (LFQ): -$229
- Working Capital (LFQ): $1,344
Bird Construction Inc. (TSE:BDT) – $11.17
Construction & Engineering
Bird Construction Inc. operates as a general contractor in the Canadian construction market. The Company focuses on projects in the industrial, commercial and institutional sectors of the general contracting industry. In the industrial sector, it constructs industrial buildings and performs civil construction operations, including site preparation, concrete foundations, underground piping and earthwork for clients operating in the oil and gas, and mining businesses.
- Market Cap: $475
- Revenue (LTM): $1,555
- Net Debt (LFQ): -$185
- Working Capital (LFQ): $120
Indigo Books and Music Inc. (TSE:IDG) – $17.01
Miscellaneous Specialty Retailers
Indigo Books & Music Inc. is a Canada-based book, gift and toy retailer. The Company operates stores in approximately 10 provinces and a territory in Canada, and offers online sales through its indigo.ca website. It operates approximately 90 superstores under the banners Chapters and Indigo, and approximately 120 small format stores under the banners Coles, Indigospirit, SmithBooks and The Book Company. The Company also has interests in Calendar Club of Canada Limited Partnership (Calendar Club), which operates seasonal kiosks and year-round stores in shopping malls across Canada.
- Market Cap: $440
- Revenue (LTM): $1,002
- Net Debt (LFQ): -$173
- Working Capital (LFQ): $206