For this write-up, I used the standard definition of net cash.
You're right that we could adjust for contract liabilities (prepayments). However, to be consistent, we would then need to also adjust for contract assets (unbilled work). In Build King's case, contract assets significantly exceed contract liabilities. If we include both, the EV becomes even more negative.
How did you calculate net cash? I.e., did you include any liabilities resulting from received prepayments?
Fair question.
For this write-up, I used the standard definition of net cash.
You're right that we could adjust for contract liabilities (prepayments). However, to be consistent, we would then need to also adjust for contract assets (unbilled work). In Build King's case, contract assets significantly exceed contract liabilities. If we include both, the EV becomes even more negative.