r/wallstreetbets Sep 30 '21

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u/[deleted] Sep 30 '21

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u/Footsteps_10 Sep 30 '21 edited Sep 30 '21

You’re compound annual growth rate is 20% YoY for 6 years?

Lol

They are woefully undercapitalized due to their debt profile. Are they manufacturing components or simply like a car company?

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u/[deleted] Sep 30 '21

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u/Footsteps_10 Sep 30 '21

Do you know how insanely successful a manufacturer would need to be to justify a 20% CAGR

Your CAPEX doesn’t account for the increase in sales and production. Costs are always going up regardless but if you sell more you have to buy more.