Wework Inc, the co sharing, co-working spaces for rent corporation filed for bankruptcy.
The main reason is the more than 20 billion USD in debt of Wework Inc in Wolfteam Ltd.'s corporate view.
With 3.4 billion USD in revenue, negative net profit margin of - 80 % a year, and 21 billion USD of debt carried by Wework Inc, Wework Inc was simply unsustainable as a going concern.
Tesla exhibited negative net profit margins at - 30 % at the most. - 20 % on average in bad years and never had so much debt in proportion to revenue.
Amazon Inc's net profit margin was - 10 %, 15 % at most, usually - 5 % in unprofitable years. Amazon also never has such high debt load in proportion to revenue, as Wework did.
Wework Inc apparently grew too quickly and the growth was financed by excessive debt, leverage.
What is more, the average negative profit margin at Wework Inc for the last 5 years was around - 80 %.
Both such negative profitability and high debt load to relatively not that large a revenue as in Wework's case, was unsustainable in the mid-term.
If the debt can be decreased to something like 5 billion USD, revenue kept at around 3 billion USD or moderately increased, with net profit margin + 5 %, Wework could be worth 11 billion USD, according to Wolfteam Ltd.
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