You bought an industrial peanut desheller. Paid $10 million for it. But you skrimped on maintenance. So now it's off an eighth of an inch and well, basically, peanut butter is clogging the machine, so you have to take it down for cleaning every other week.
Not only does taking that asset offline cost you time and money, it has made your vendors start to question your reliability in delivering the 10,000 pounds of peanuts you've been selling them for years. So your brand is getting tarnished and bad things are on the horizon for the future of Tortugaville.
If you spend big capital on an asset, the financial story rarely ends there...bad managers don't make accommodation for the needed maintenance, care, love, and feeding that big beast machines always seem to need.
There should be easy math that covers something like, "If I spend $10,000 a month on maintenance, then the machine should be up and working 4 more days a month - are those 4 days worth $2,500 in profitable throughput to the company?" If the answer is "yes" or something even close to "yes" then...yeah, go for it.
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Finance: What is a Liquid Market?17 Views
Finance allah shmoop What is liquid market Well it's one
that trades Ah lot High volume Lots of buyers Lots
of sellers Liquid lots of cash sloshing this way In
that way Go this way and that Did you ever
see a liquid market go this way and that That
little song Did you ever see a lassie Never mind
All right Weir Liquid markets Good Well because they implied
there's Lots of cash ready willing and able to be
put to work And that's usually a sign of a
healthy risk seeking active market versus risk averse one which
is you know hiding Ah liquid market means that investors
want to put their cash toe work that they have
actually saved cash along the way and or that they
have relatively easy access to credit And you can think
about it from the perspective of your kindly loving realtor
who wants a world where lots of people are buying
homes But in orderto have that happen you have to
have lots of people who are also selling homes at
the same time Otherwise prices just go higher and higher
with no supply to meet demand And at the end
of the day in real estate and it's in the
stock market while the most important thing yes that the
brokers get pays So that's a liquid market one that
trades a lot like it's Wet trading back and for
sloshing around not ice Where everything's you know all jammed 00:01:22.109 --> [endTime] up No needs heat or an animal or something
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