Tale of Two Cities
I am fascinated by $Grab Holdings(GRAB)$.
As I use it on a almost daily basis, I reflect and marvel the two contrasting stories being told by what I gather so far.
City of Splendor
Just last week SM Tharman and Senior minister of state Dr Koh PK went to visit Grab at Tampines. CEO Anthony Tan expresses his positivity at this visit citing that the new Grab@Tampines will help reduce service time and allow for drivers spend more time earning income. The new location is 3x bigger and can serve more partners at one time.
I checked out Dr Koh's FB also to find that theAdvisory committee on platform workers is looking to strengthen employment protections forworkers while ensuring sustainability of the platform ecosystem. He also acknowledges thatGrab does good for the workers, and he is happy that Grab is working closely to have a winwin outcome.
Sounds great right? I mean if you are a minister, you won't just pop into ANY company right? All looks positive and dandy.
City of Horror
Diving into the numbers, I totally different picture is seen. While Grab's 2021 Annual revenueis 675M, the operating income is -1.55B. Yes B is Billion. The nett income in 2021 is -3.56B. In simple terms, for 2021, for every dollar earned, $5.27 is spent.
Looking at the cash and cash equivalents, the 2021 report showed that Grab has $4.99B. In the Q1 report, the same metric shows $3.39B.
Math questions:
1. How much cash did Grab use in Q1 2022?
2. If the burn rate is consistent, how long more can Grab last?
The answer to Q1 is $1.6 billion. For Q2, it is not so simple as the details might show some one off expenses. Nonetheless in the worst horror movie, a burn rate of $1.6B per quarter will burn that $3.39B in another 6 months plus time.
What now?
If you are vested in $Grab Holdings(GRAB)$, you might want to do more read ups and digging of information.
If you are not vested, I will advise to err on theside of caution and not go in or only use money that you can afford to lose.
Of course I could be wrong in that Grab could turn around with their cost cutting measures in Q2 and successfully raise more funds. Then again I am perfectly fine with missing out more opportunities for better sleep.
What about you? What do you think? I would like to learn from you. Thanks
@MillionaireTiger@CaptainTiger@TigerStars
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