Should SEC investigate into HOV's financials????
From today's earnings release:
commented Ara K. Hovnanian, President and Chief Executive Officer of the Company. "Despite disappointing operating losses, we successfully generated cash during the third quarter and remain on track to end our fiscal year with approximately $800 million of homebuilding cash.
Here is the problem, accounts payables are only down about 20% from $515 million to $427 million. HOWEVER, backlog is down almost 60% from $2.8 Billion to $1.1 Billion.
How can payables only decrease 20% and backlog decrease amost 3X that amount?
Is HOV delaying paying its vendors to make its financial reports look better???????????