Stora Enso (STERV FH) Finland
Materials
A focus on improving cash flow and strengthening the balance sheet appeared to pay off in FY21, as net debt/EBITDA came well under target. However, a closer look at the accounts suggest that the company has been stretching out payables and resorting to factoring in order to achieve this. While this may have helped the CEO achieve her short-term goals, investors could be significantly underestimating leverage and overestimating cash generation.
Edition: 132
- 01 April, 2022