ReposiTrak provides business applications to aide its customers with supply chain solutions. Provided as software-as-a-service, the applications are used primarily by consumer retail chains, wholesalers and distributors. The Company hosts the ReposiTrak MarketPlace for supplier discovery and business-to-business purchasing decisions. There are numerous competitors that often focus on one business vertical or another, and no one company commanding a significant market share. ReposiTrak differentiates itself in the well populated landscape with unique product features and high quality consultative services.
In the twelve months ending March 2024, ReposiTrak reported $20.08 million in total sales, providing $4.87 million in operating income. Importantly, the Company was successful in converting 33.40% of sales to $6.71 million in operating cash flow. At such a high converse rate, the Company has access to growth capital. Indeed, ReposiTrak does not rely on leverage as is revealed by its debt-to-equity ratio of 0.10.
Internal investment in growth projects is clearly justified. In the trailing twelve months, the Company earned approximately 12.86% on its invested capital. Since its cost of capital is estimated at 6.68%, an excess return of 5.18% accrues to stakeholders.
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