My American magical life
Chapter 793 - 793 37 Leader 4

793: Chapter 37 Leader 4 793: Chapter 37 Leader 4 Baiyel has been in this industry for many years.

As a seasoned financial officer, he knew exactly where the problem lay with West State Logistics.

But in this world, there are some things that can only be understood, not put into words.

Every high-level executive at West State Logistics knew where the problem was, but no one was willing to voice it—before Cheng became the controller of this logistics giant.

“The company has a cash flow problem; the issue is, we’re not short on money, but we’re always repaying debts, constantly repaying debts, the cash flow is depleted, continue repaying debts, wait for the next month, repeat the process.

We so-called managers aren’t really managers; we also want to revitalise the business, make the company more dynamic, but what we say doesn’t count.”

Ignoring the fearful and anxious expressions of Gru and Pengte, Baiyel poured out everything in one breath.

Sheriff Gru had been listening to Baiyel’s nonsense with a smile, with a ‘you can say whatever, I won’t believe it’ attitude.

Now he wasn’t smiling anymore, instead, he started to study the different states of the three managers.

Greens tone seemed to be the most fearful one, Pengte was relatively better, but not by much, Baiyel, on the other hand, looked as though a heavy burden had been lifted.

Interesting, Sheriff Gru simply found it interesting.

“Is someone forcing West State Logistics to take out loans?”

Cheng Daqi felt somewhat bored, Achilles, your tactics are too traditional.

But that was to be expected; creativity in form and terminology does not change the essence.

“You know, the previous controllers of West State Logistics were not us, and neither are we now.”

Baiyel had completely given up; after all, he did not want to be the scapegoat!

“The high-profit businesses of West State Logistics were only in two areas; one is traditional bulk commodity logistics, covering trucks, trains, river transport, etc., and the other is government subsidies.

Due to West State Logistics’ high debt ratio, the Federal Government considered its value in stabilizing employment and included us, plus some other logistics giants, on the subsidy list.

Under normal circumstances, with profitable businesses and subsidies, West State Logistics shouldn’t be lacking money, at least not like it is now.

However, the previous controlling party designed a model of draining the cash flow by using loans to pay salaries and expanding.

Whenever there is cash, it’s used to pay off debts, then we take out more loans, and they restricted the lending parties, with a very high interest rate as well.”

“That’s enough, Baiyel; these are necessary measures for enterprise operation.

Which company doesn’t have loans?”

Greens tone interrupted Baiyel’s statement.

Cheng Daqi pointed at him, asking with slight anticipation.

“Are you Achilles’ man?”

As soon as this was said, Baiyel became the happiest one; the poor accountant finally let out a long sigh of relief.

Indeed, he had bet correctly.

“No, sir, I am only speaking from a position of duty.

The problem of West State Logistics taking out loans might seem absurd, but it’s just slightly exaggerated; after we take decisive countermeasures, this situation of high debt ratio will definitely improve.”

Cheng Daqi nodded in disappointment and closed the report in his hand.

“Next month’s debt due exceeds 300 million.

I’m curious, what is the total cash flow generated by West State Logistics each year, not accounting for costs, just the cash flow reflected in our accounts?”

Sheriff Gru was somewhat surprised; Cheng’s demeanor seemed to indicate he really wasn’t worried about the tremendous debt.

You’re not really planning to pay it off, are you?

“Over 9 billion Dollars, Cheng, the key is that the interest expense is too high, every year we have to pay an extra nearly 700 million Dollars of interest for this huge debt, and the profit margins in the logistics industry are already low, these 700 million Dollars in interest nearly devour all our profits.

Then we return to that vicious cycle, wanting to expand means taking out loans, increasing costs, risks becoming uncontrollable, so we have to rely even more on government subsidies, maintaining related relationships becomes an inevitable choice.

Honestly, I’ve been a financial officer for many years, but the debt ratio of West State Logistics is getting higher and higher, sometimes I even wonder if I’ll end up in Prison.”

Baiyel’s words today had pretty much uncovered the skeleton in West State Logistics’ closet; former General Manager Pengte dropped the act, and he said.

“Mr.

Gru, respected Cheng, as the former CEO of the company, I bear an inescapable responsibility for the company’s predicament, so, I am willing to resign!”

Achilles is not someone he can afford to offend; neither are these newcomers.

Then just go home, since Baiyel had made it clear, the main responsibility had nothing to do with them.

“Additionally, regarding the ‘financial crimes of the executives’ Baiyel just mentioned, I have something to say.

Personally, I can guarantee that I haven’t taken even a penny that I shouldn’t have; if any of you have doubts, feel free to investigate!”

Greens tone was growing restless.

“Hey, Pengte, buddy, if the company has difficulties, we can face them together, right?”

Silence, silence, the air in the conference room grew more silent.

The smart ones turned their gaze towards the man targeted by the colorless spotlight, who also realized that he had exposed his underbelly; he smiled awkwardly, forceful and feeble.

“How much money do you expect to be on the account before the repayment date?”

Cheng Daqi ignored the other two managers and continued to ask Baiyel.

“A little over 300 million, short by 80 million, and if it’s all used to repay debts, our daily operations will run out of money again, that’s the predicament I’m talking about.”