> But despite our Current Liabilities being high, they at least are not as frightening as Groupon's Merchant Payables gap, as Groupon pays out usually in 1/3rds (30 days, 60 days, then 90 days), while at LivingSocial, we usually pay 80% of the total daily deal's sales to a merchant within 10 days of the offer ending, and then we owe them the other 20% months later. So yes we owe local merchants a lot of money, more than our Cash, and these Merchant Payables are most of our Current Liabilities as PrivCo surmised, but I will point out thta at least it's not as as great a portion of our Current Liabilities as Groupon's.
What's with the Groupon deflection spin? LS clearly screwed up here. Pointing fingers at Groupon as an even-worse-offender achieves literally nothing.
I agree. You could even argue from a business perspective that Groupon's making a wiser business decision by using the time value of money more in its favor.
What's with the Groupon deflection spin? LS clearly screwed up here. Pointing fingers at Groupon as an even-worse-offender achieves literally nothing.