The Ontario government is investing more than $865,000 through the Northern Ontario Heritage Fund Corporation (NOHFC) in two projects in the Village of Sundridge. This investment will improve municipal infrastructure, expand business operations and create employment.
“This investment demonstrates our government’s commitment to the residents of small-town Ontario,” said Graydon Smith, MPP for Parry Sound-Muskoka. “We’re strengthening access to high-quality local health care and creating jobs across Almaguin. Our government remains committed to ensuring rural areas and small towns throughout the Parry Sound region have access to the supports and resources they deserve.”
The NOHFC is funding the following projects:
$744,567 for the Village of Sundridge to renovate and modernise the Sundridge & District Medical Centre to improve operational efficiencies, meet current accessibility, health and safety standards, and prolong the life of the facility.
$121,320 for Tim Bryson Forestry Services to purchase equipment and upgrade facilities to increase production capacity.
“Our government is focused on creating good jobs, strengthening local economic development, and supporting business expansions across the North,” said Greg Rickford, Minister of Northern Development. “Together with our northern partners, our government continues to make Sundridge strong, healthy and vibrant.”
The NOHFC promotes economic prosperity across Northern Ontario by providing financial assistance to projects—big and small, rural and urban—that stimulate growth, job creation and skills development. Since June 2018, the NOHFC has invested more than $639 million in 5,265 projects in Northern Ontario, leveraging more than $2 billion in investment and creating or sustaining over 8,420 jobs.
We can readily understand why investors are attracted to unprofitable companies. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you’d have done very well indeed. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.
So should IonQ (NYSE:IONQ) shareholders be worried about its cash burn? In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. Let’s start with an examination of the business’ cash, relative to its cash burn.
A company’s cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate. When IonQ last reported its balance sheet in December 2022, it had zero debt and cash worth US$356m. Looking at the last year, the company burnt through US$57m. That means it had a cash runway of about 6.2 years as of December 2022. Importantly, though, analysts think that IonQ will reach cashflow breakeven before then. In that case, it may never reach the end of its cash runway. The image below shows how its cash balance has been changing over the last few years.
debt-equity-history-analysis
How Well Is IonQ Growing?
IonQ actually ramped up its cash burn by a whopping 57% in the last year, which shows it is boosting investment in the business. Given that operating revenue was up a stupendous 430% over the last year, there’s a good chance the investment will pay off. Considering the factors above, the company doesn’t fare badly when it comes to assessing how it is changing over time. Clearly, however, the crucial factor is whether the company will grow its business going forward. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company.
Can IonQ Raise More Cash Easily?
There’s no doubt IonQ seems to be in a fairly good position, when it comes to managing its cash burn, but even if it’s only hypothetical, it’s always worth asking how easily it could raise more money to fund growth. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. Commonly, a business will sell new shares in itself to raise cash and drive growth. By looking at a company’s cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year’s cash burn.
IonQ’s cash burn of US$57m is about 5.2% of its US$1.1b market capitalisation. That’s a low proportion, so we figure the company would be able to raise more cash to fund growth, with a little dilution, or even to simply borrow some money.
Is IonQ’s Cash Burn A Worry?
As you can probably tell by now, we’re not too worried about IonQ’s cash burn. For example, we think its revenue growth suggests that the company is on a good path. While its increasing cash burn wasn’t great, the other factors mentioned in this article more than make up for weakness on that measure. One real positive is that analysts are forecasting that the company will reach breakeven. Looking at all the measures in this article, together, we’re not worried about its rate of cash burn; the company seems well on top of its medium-term spending needs. Separately, we looked at different risks affecting the company and spotted 3 warning signs for IonQ (of which 1 is significant!) you should know about.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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We can readily understand why investors are attracted to unprofitable companies. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you’d have done very well indeed. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly.
Given this risk, we thought we’d take a look at whether Entrada Therapeutics (NASDAQ:TRDA) shareholders should be worried about its cash burn. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. First, we’ll determine its cash runway by comparing its cash burn with its cash reserves.
A company’s cash runway is calculated by dividing its cash hoard by its cash burn. As at December 2022, Entrada Therapeutics had cash of US$189m and no debt. Importantly, its cash burn was US$97m over the trailing twelve months. Therefore, from December 2022 it had roughly 23 months of cash runway. While that cash runway isn’t too concerning, sensible holders would be peering into the distance, and considering what happens if the company runs out of cash. You can see how its cash balance has changed over time in the image below.
debt-equity-history-analysis
How Is Entrada Therapeutics’ Cash Burn Changing Over Time?
Entrada Therapeutics didn’t record any revenue over the last year, indicating that it’s an early stage company still developing its business. Nonetheless, we can still examine its cash burn trajectory as part of our assessment of its cash burn situation. During the last twelve months, its cash burn actually ramped up 74%. Oftentimes, increased cash burn simply means a company is accelerating its business development, but one should always be mindful that this causes the cash runway to shrink. While the past is always worth studying, it is the future that matters most of all. So you might want to take a peek at how much the company is expected to grow in the next few years.
Can Entrada Therapeutics Raise More Cash Easily?
While Entrada Therapeutics does have a solid cash runway, its cash burn trajectory may have some shareholders thinking ahead to when the company may need to raise more cash. Companies can raise capital through either debt or equity. Commonly, a business will sell new shares in itself to raise cash and drive growth. We can compare a company’s cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year’s operations.
Entrada Therapeutics has a market capitalisation of US$389m and burnt through US$97m last year, which is 25% of the company’s market value. That’s not insignificant, and if the company had to sell enough shares to fund another year’s growth at the current share price, you’d likely witness fairly costly dilution.
How Risky Is Entrada Therapeutics’ Cash Burn Situation?
Even though its increasing cash burn makes us a little nervous, we are compelled to mention that we thought Entrada Therapeutics’ cash runway was relatively promising. Even though we don’t think it has a problem with its cash burn, the analysis we’ve done in this article does suggest that shareholders should give some careful thought to the potential cost of raising more money in the future. Taking a deeper dive, we’ve spotted 5 warning signs for Entrada Therapeutics you should be aware of, and 3 of them can’t be ignored.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Allegion (NYSE:ALLE) has shown resilient growth in the face of increasing economic headwinds. The company is optimistic about growing its organic revenues by mid-single-digit in 2023. But the economy is likely to deteriorate further, which may pressure the company’s growth and cash flow margins. The market is overvaluing Allegion, leaving the company no room for error in the execution of its growth strategy.
Allegion’s Growth May Face Headwinds.
Allegion handily beat its Q1 2023 earnings estimates by a wide margin. The company booked revenue of $923 million, which was $76.7 million above expectations, and its GAAP EPS was $1.40, which beat expectations by $0.12. The company’s revenue growth was 27% in Q1, primarily driven by acquisitions. The company raised its revenue and earnings estimates for the rest of the year. It now expects organic revenue growth to range between 5.5% and 7.5% and EPS to range between $5.95 and $6.15. The company has beaten EPS estimates in the past four quarters.
The company credited this substantial revenue and EPS growth to robust demand in its North American non-residential business and strong global demand for its electronics solutions. The company credits its improving cashflows and EPS to solid market demand in its non-residential markets, improving the supply of electronic components and strong pricing. The company also sees the security and access control demand transition to smart electronic hardware, driving revenue growth.
Since June 2020, the company has increased its revenue by 56%, primarily driven by acquisitions (Exhibit 1). The company is on the brink of $1 billion in quarterly revenue, having booked $923 million in Q1 2023 (ended March 2023).
The company’s average quarterly gross margins have been 41.8% since June 2020 compared to its annual average of 42.6% over the past decade (Exhibits 1 & 2). But improving supply chains, robust demand, lower inflation, and higher pricing have helped the company improve its gross margins closer to its annual average in March 2023. The company’s GAAP gross margins improved by 184 basis points in Q1 2023 compared to Q4 2022.
Over the past year, I have been surprised by the pricing power of many companies in the industrial and consumer staples sectors. Most companies have seen volumes decline in the face of double-digit price increases, but price elasticities were lower than what even the management had anticipated. In Allegion’s case, the company’s volumes increased by 4.4% in the face of a 10.6% price increase (Exhibit 3). But the company’s growth was driven by its America segment, which grew revenues by 42%, while its International segment saw a nearly 10% decline in revenue and substantial erosion of margins.
Exhibit 3:
Allegion First Quarter 2023 Revenue Results (Allegion Investor Presentation)
Cash Flows Take A Hit Due To High Inventory.
Although the company booked record revenues and cash flows, its operating cash flow was weak due to increased inventory driven by increased safety stock. Its quarterly operating cash flow and margin were $69 million and 7.4%, respectively (Exhibit 4). The company has averaged 16.3% in operating cash flow margin since June 2020. The company’s elevated inventory levels contributed to declining operating cash flows. The company carried 84 days of inventory at the end of its March quarter, compared to its average of 67 days over the past decade (Exhibit 5). The inventory levels are beginning to decline compared to the end of 2022. This declining inventory should lead to better cash flow generation in the rest of 2023.
Allegion Day’s Sales in Inventory (Seeking Alpha, Author Calculations)
The company hopes to attain its projected growth targets for 2023. Although the company is optimistic that it will achieve its growth targets for the year, it faces multiplying headwinds. Its International segment was weak, and demand may continue to soften. Commercial real estate is under much pressure in North America and can weaken further if the unemployment rates rise. The commercial real estate market segment is seeing higher vacancy rates pressuring rents, while the cost of capital for these companies has increased exponentially. Any decline in its growth could slow its inventory levels and leave the company with lower cash flows than anticipated.
High Valuation
The company’s current valuation has no buffer for any uncertainty that could negatively affect its business in 2023. The stock trades at a forward GAAP PE of 17.6 and a PEG ratio of 3.2x, a high multiple. It trades at a forward EV to EBITDA multiple of 13.5x, compared to the sector median of 10.4x. A reasonable valuation for the stock would be close to 10x EV to EBITDA multiple. A 10x EV to EBITDA multiple will put the stock around $90. It may be no coincidence that the stock’s 52-week low was $87.33. The valuation metrics seem to indicate that the stock is overvalued.
A discounted cash flow model estimates the per-share equity value at $105 (Exhibit 6). This model assumes a revenue growth rate of 4%, a free cash flow margin of 13%, and a discount rate of 8%. These model assumptions are reasonable for the company. The company carries a debt-to-EBITDA ratio of 2.5x, not an excessive debt level.
Exhibit 6:
Allegion Discounted Cash Flow Model (Seeking Alpha, Author Calculations)
This model assumes a lower revenue for 2023 of $3.4 billion, compared to a consensus estimate of $3.69 billion. If the model is based on $3.69 billion in revenue in 2023, the per-share equity value is $115, about 4% above its current price of $110.48. The company’s projected higher growth rate may be unsustainable over the long term, so a 4% assumption may be reasonable. The U.S. economy grew by just 1.1% in Q1 and is expected to optimistically grow at less than a 4% pace for the rest of the decade. A 4% growth rate would have the company growing faster than the GDP. Investors must have a margin of safety in valuing any stock, and Allegion is no exception. The stock is fully valued now, and investors may consider investing in it if it returns to the mid-nineties.
Low Dividend, Poor Buybacks, But Excellent Dividend Growth.
The stock yields a dividend of 1.6%, low compared to the yields available on U.S. Treasuries. The company has a conservative payout ratio of 27% and has grown its dividend by 19% over the past five years, an excellent growth rate. The company has spent $588 million on share buybacks since September 2020, reducing its share count by 4.3 million at an effective buyback price of $136 (Source: Seeking Alpha, Author Calculations). The company may have overpaid for its buybacks, considering its intrinsic value is closer to $90 per share.
Economic growth is decelerating globally, with the latest U.S. GDP growth spotlighting a dramatic slowdown. The stock market’s volatility, as measured by the S&P VIX Index (VIX), is at 15.7, showing complacency. These market conditions can change on a dime. Long-term investors looking to buy Allegion may be left with regret if they purchase Allegion at current prices. A further slowdown in the U.S. economy and increased volatility may present a better opportunity to acquire this stock at a lower valuation.
In a matter of hours on Monday, cable news underwent a seismic shift. First, Fox News announced that it had ousted Tucker Carlson, its most popular prime-time host. The move came less than a week after the company paid $787.5 million to settle a defamation suit with Dominion Voting Systems. A focus of the case had been Mr. Carlson’s texts, showing him denigrating Donald J. Trump after the 2020 presidential election. But it wasn’t until the day before the defamation trial was to begin that Fox leadership discovered private messages sent by Mr. Carlson that had been redacted in previous legal filings showing him making highly offensive and crude remarks. Those messages served as a catalyst for his firing, several people with knowledge of Fox’s discussions said. Soon after Mr. Carlson was fired, CNN announced that it had “parted ways” with Don Lemon, a longtime star on the network who most recently was a morning show co-host. Mr. Lemon met backlash in February when he made comments about women and aging that many considered sexist.
Troubled Banks
Federal regulators were racing over the weekend to seize and sell the troubled First Republic Bank before financial markets open on Monday. First Republic, a midsize bank in San Francisco, reported a staggering deposit flight over last month. LastMonday, the bank’s executives said it had a quarterly loss of $102 billion in customer deposits, more than half of the $176 billion it held at the end of last year, not taking into account the $30 billion lifeline it received in March from the country’s biggest banks. First Republic’s troubles are part of a wider banking crisis that began with the collapse of Silicon Valley Bank in mid-March. In a report released on Friday on the failure of SVB, the Federal Reserve blamed itself for failing to prevent SVB’s collapse. Michael S. Barr, the Fed’s vice chair for supervision, said overseers at the central bank had failed to “take forceful enough action” and said regulatory standards for SVB “were too low.”
Slowing Economic Growth
The U.S. economy was still growing in the first three months of the year, according to preliminary data released on Thursday, as consumers continued to spend on goods and services like travel and dining out. Gross domestic product in the United States rose at a 1.1 percent annual rate, a deceleration from the 2.6 percent rate in the last three months of 2022 but still the third straight quarter of growth. The robust consumer spending helped offset slowdowns elsewhere: The housing sector and business investment in equipment — two areas of the economy sensitive to changes in interest rates — both continued to shrink. But how long will consumers continue to open their wallets? Analysts are not sure.
What’s Next? (April 30-May 6)
A Highly Anticipated Fed Meeting
These days, aren’t all meetings of the Federal Reserve highly anticipated? Well, yes. But even in the era of closely observed Fed moves, the meeting this Wednesday is notable. With signs of an economic slowdown, some analysts now believe there is a slim possibility that Fed officials will pause their streak of interest rate increases. At their last meeting in March — squarely in the midst of the banking turmoil — officials raised rates by a quarter-point, matching the previous month’s increase. But the Fed signaled that much uncertainty lay ahead as it sought a narrowing path to a soft landing, made narrower by the collapses of Silicon Valley Bank and Signature Bank. Still, many analysts expect the central bank to approve another quarter-point increase, continuing its fight to tame cooling but persistent inflation.
Hollywood’s Labor Dispute
Thousands of screenwriters in Hollywood could go on strike as soon as Tuesday, when their contract with the industry’s major studios expires. Earlier this month, the writers’ unions, which are affiliated with the East and West Coast branches of the Writers Guild of America, said that 98 percent, or more than 9,000, of the writers they represent approved a strike authorization, empowering union leaders to call for a labor stoppage. Writers say their wages and working conditions have worsened amid the streaming boom for scripted television. Hollywood studios have said that demands for a new pay structure ignore economic realities. As the possibility of a strike has crept nearer, executives have been stockpiling scripts and preparing reality series, which don’t need script writers. But late-night shows like “Saturday Night Live” will go dark immediately if writers walk off the job.
Job Market May Be Cooling
The consensus forecast for this Friday’s jobs report is that employers added 170,000 jobs in March, down from 236,000 in February. That would be the first time the number of new jobs added in a month dropped below 200,000 since the early days of the pandemic, and it would also put the labor market within spitting distance of the Fed’s target of about 100,000 jobs added per month. The labor market has been remarkably resilient in the face of the central bank’s recent policy moves. But analysts say that could soon change: They expect to see a significant slowdown later this year, which could mean more layoffs of the sort that have so far been largely contained to the tech and media industries.
What Else?
Bed Bath & Beyond said last Sunday that it was filing for bankruptcy and would begin closing hundreds of locations while it sought to sell parts of its business. Disney filed a First Amendment lawsuit on Wednesday accusing Gov. Ron DeSantis of Florida and other state officials of “a targeted campaign of government retaliation.” And the latest in the FTX saga: On Thursday, the F.B.I. searched the home of Ryan Salame, a former executive at the defunct cryptocurrency exchange.
We can readily understand why investors are attracted to unprofitable companies. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you’d have done very well indeed. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.
So should IonQ (NYSE:IONQ) shareholders be worried about its cash burn? In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. Let’s start with an examination of the business’ cash, relative to its cash burn.
A company’s cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate. When IonQ last reported its balance sheet in December 2022, it had zero debt and cash worth US$356m. Looking at the last year, the company burnt through US$57m. That means it had a cash runway of about 6.2 years as of December 2022. Importantly, though, analysts think that IonQ will reach cashflow breakeven before then. In that case, it may never reach the end of its cash runway. The image below shows how its cash balance has been changing over the last few years.
debt-equity-history-analysis
How Well Is IonQ Growing?
IonQ actually ramped up its cash burn by a whopping 57% in the last year, which shows it is boosting investment in the business. Given that operating revenue was up a stupendous 430% over the last year, there’s a good chance the investment will pay off. Considering the factors above, the company doesn’t fare badly when it comes to assessing how it is changing over time. Clearly, however, the crucial factor is whether the company will grow its business going forward. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company.
Can IonQ Raise More Cash Easily?
There’s no doubt IonQ seems to be in a fairly good position, when it comes to managing its cash burn, but even if it’s only hypothetical, it’s always worth asking how easily it could raise more money to fund growth. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. Commonly, a business will sell new shares in itself to raise cash and drive growth. By looking at a company’s cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year’s cash burn.
IonQ’s cash burn of US$57m is about 5.2% of its US$1.1b market capitalisation. That’s a low proportion, so we figure the company would be able to raise more cash to fund growth, with a little dilution, or even to simply borrow some money.
Is IonQ’s Cash Burn A Worry?
As you can probably tell by now, we’re not too worried about IonQ’s cash burn. For example, we think its revenue growth suggests that the company is on a good path. While its increasing cash burn wasn’t great, the other factors mentioned in this article more than make up for weakness on that measure. One real positive is that analysts are forecasting that the company will reach breakeven. Looking at all the measures in this article, together, we’re not worried about its rate of cash burn; the company seems well on top of its medium-term spending needs. Separately, we looked at different risks affecting the company and spotted 3 warning signs for IonQ (of which 1 is significant!) you should know about.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
Shout out to all the stay at home moms because without you the world would be chaos! While all moms are important and caring family members, stay-at-home moms are on a different level. Their commitment to their families and managing households is amazing. Honestly, I have no idea how they do it. So what could you possibly get for the woman who literally gives it her all every day?
Here are 11 stay at home mom gifts hand-picked by me (a mama)!
A gorgeous piece of jewelry is a beautiful way to celebrate any mom and Tiny Tags makes some of my absolute favorites! Their Mini Dog Tag Necklace is a staple jewelry piece made of 14K gold in yellow, white, or rose. You can add extra tags with names and important dates over the years.
My favorite thing about this necklace is that it comes on a longer chain so it can be worn every day and layered with other necklaces.
If she loves to cook, this Instant Pot will be an amazing gadget to add to her collection. Not to mention, it will make weeknight dinners a breeze since you can cook yummy meals in it so quickly!
Give her the gift of time with this vacuum that will clean the floor by itself! Roomba navigates under, around furniture, and along edges grabbing dust, dirt, and large debris. This one even empties itself, talk about effortless!
Let me give a little disclaimer with this gift, you should NEVER under any circumstance get your mom a vacuum or cleaning gadget unless she specifically asks for it. Just try me!
If you haven’t heard of the Stanley Quencher yet, you’ve been living under a rock! These are THE gift of the year, no doubt. They keep your drink hot or cold for hours, have a handle, and come in the cutest colors. Plus they are dishwasher safe and will fit in your car’s cupholder!
Give her a framed image of the night sky on each day she gave birth. It is unique and specific all at the same time. And, such a great way to commemorate some of the most special days of her life.
If you know a mama who loves to work out, cute workout equipment is the perfect gift idea. It will allow her to get in a sweat during nap time!
The set above is from Target and is perfect for anyone looking to get into yoga or pilates. It includes a yoga mat, yoga strap, massage ball, and 3 resistance body bands.
Spa Package
A spa day might be exactly what your stay-at-home mom needs. A little kid-free time to get in some relaxation.
You can gift her a gift card to her favorite spa (if you know it) or use this helpful site to find one near you: SpaFinder
Relieve all day’s stress and fatigue with these shower steamers made with natural essential oils which will dissolve in the shower and help your mom immerse in deep relaxation.
Nothing says relaxation like a good foot massage and this machine is one that just keeps on giving. Not only does this vibrate and do deep tissue massages it also has a heat function to warm up her toes after a long winter day.
Maybe feet aren’t her issue this neck and shoulder massager is the next best thing. With six massage heads and endless settings, this is the perfect relaxation gift.
Price: $100
Subscriptions
If a one-time gift just doesn’t feel right, consider getting your mom a subscription. They are the gift that really keeps on giving.
Blue Apron – Do you know how stressful it is to meal plan, grocery shop, and cook? Blue Apron takes the stress out of cooking by delivering perfectly portioned ingredients and instructions on how to cook them. Monthly subscriptions start at $10 plus the cost of food. You can purchase up to four meals a week. Therefore, the most expensive subscription would be four servings for four meals and the total would be $140 a week.
Cost: $80-140 a week
Winc – Does the stay-at-home mom in your life like wine? (What mom doesn’t? Am I right?) Winc is three bottles for $30 a month. She can even rate and put in her preferences as she discovers what the likes.
Cost: $30 per month
Audible – Does your mom spend most of her time being the family chauffeur? Does she sit in the car and wait while you or your kids are at practice? Audible is a great way to pass the time! Starting at just $7.95, Audible has thousands of books and podcasts for her to listen to while driving.
ISLAMABAD – The All Pakistan Business Forum (APBF) has warned the record inflation and high cost of doing business has been continuing to hurt economic growth, demanding of the authorities concerned to take serious measures to keep it in control.
APBF President Syed Maaz Mahmood said that the most serious threat to the economy in the current fiscal year is hyperinflation, as the government plan of approaching the International Monetary Fund (IMF) for financial assistance has brought a fresh wave of price-hike, because inflation is already hitting due to continuous raise in oil prices and depreciation of local currency.
He said that high inflation is just one of the issues currently putting Pakistan’s economy in distress as it also faces a balance of payments crisis. Pakistan is reeling from one of its worst economic crises in history. The country has been faced with a barrage of woes with a perceived default risk and a downgrade by international rating agencies reflecting the state of the economy that has also had to bear major political turmoil and frequent change in key leadership.
APBF Chairman Ibrahim Qureshi predicted that inflation would remain high and may even increase further due to market frictions caused by relative demand and supply gap of essential items, exchange rate depreciation and recent upward adjustment of administered prices of petrol and diesel.
Ibrahim Qureshi said that due to the lagged effect of floods, production losses, especially of major agriculture crops, has not yet been fully recovered. Consequently, the shortage of essential items has emerged and persisted. Inflation may further jack up as a result of second round effect. He said the IMF loan would have devastating effects on the economy, as with more taxes and increased rates of utilities, cost of production would further increase. This will render Pakistani exports uncompetitive in the global market.
The APBF President said that there is a consensus that a low inflation rate helps economic activities, while high inflation hurts economic growth. The high inflation environment affects decision making of all economic agents in economy, like investors, savers, consumers and producers through uncertainty about the expected payoffs from their decisions. Moreover, a persistently high inflation also causes erosion of the value of the local currency in terms of foreign currencies. Such uncertainties, in turn, have adverse implications for economic activities. Maaz Mahmood said low inflation helps economic agents to predict outcome of their economic decisions with fair level of certainty. Especially, producers follow their plans for business expansion with more confidence; and new investment is undertaken in the expectation of predictable returns. As per PBS data, the food group, which commands a significant weight of 34.58 percent in the inflation reading, remained the major driver behind the increase. It increased from 170.06 in March 2022 to 250.25 in March 2023, a jump of over 47 percent while the transport group witnessed an increase of 55 percent YoY. He warned that inflation is expected to stay in this range at least for the next two months. He said that the transportation index was driven by a significant hike in auto rates in March, alongside, an increase in the POL prices, he said.
Data showed that CPI inflation in urban areas increased to 33.0 percent on year-on-year basis in March 2023 as compared to an increase of 28.8 percent in the previous month and 11.9 percent in March 2022. On a month-on-month basis, it increased to 3.9 percent in March 2023 as compared to an increase of 4.5 percent in the previous month and an increase of 0.7 percent in March 2022.
