Net Operating Working Capital Behavior: A First Look

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Net Operating Working Capital Behavior: A First LookAuthor(s): Matthew D. Hill, G. Wayne Kelly and Michael J. HighfieldSource: Financial Management, Vol. 39, No. 2 (SUMMER 2010), pp. 783-805Published by: Wiley on behalf of the Financial Management Association InternationalStable URL: http://www.jstor.org/stable/40732457Accessed: 25-08-2014 15:48 UTCYour use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available athttp://www.jstor.org/page/info/about/policies/terms.jspJSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of contentin a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship.For more information about JSTOR, please contact support@jstor.org.Wiley and Financial Management Association International are collaborating with JSTOR to digitize, preserve and extendaccess to Financial Management.http://www.jstor.orgThis content downloaded from 198.246.186.4 on Mon, 25 Aug 2014 15:48:35 UTCAll use subject to JSTOR Terms and ConditionsNetOperatingWorkingCapitalBehavior: A FirstLookMatthewD. Hill,G. Wayne Kelly,and Michael J. Highfield*’Netoperatingdimensions firmsadjustments operatingtoandworkingcapitalcapturesmultipleofSales growth,externalandfinancialconditions.uncertainty sales, costlyoffinancing, financialdistresstoFirmswithencouragefirms pursuemoreaggressiveworkingcapitalstrategies.greaterinternalandaccess employmoreconservativefinancingcapacity superiorcapitalmarketworkingaretoandThecapitalpolicies.Results robust unobservedheterogeneity industryeffects. evidencethatandfinancingconditionsshouldbe consideredwhensuggests operatingevaluatingworkingnotconcentrationthecapitalbehavior, just industryaverages.Additionally,industrymagnifieseffect sales growth.ofA substantialexaminesindividualofbodyofresearchcomponents operatingworkingcapitalinisolation.andandMalitz, Ravid(1993),DeloofandJegersLong,(1996),andNg,Smith, Smithtradecreditforcostwithreceivables(1999) studypolicyandfindsupport thecontracting motiveused as a productindicator.Petersen Rajan (1997) demonstrate receivablesandthatarequalitytiedto profitability capitalmarketandand Deloof and Jegerstheaccess,directly(1999) studydemandsideoftradecredit illustrate payables directlyandthatarerelated financingtodeficits.1An examination themotivesofbehindforoperatingworkingcapitalstrategyaccounting thenetinfluence receivables,ofandpayables, absentisfrom financetheliterature.2Whileinventory,studiesfocuson individualof workingwe integratetheexistingtypicallycomponentscapital,to investigatefactorsthenetinvestment operatingincomponentsinfluencingworkingcapitalasreceivableandusingtheworkingcapitalrequirement(WCR), defined thesumof accountsWeappreciate helpfulthecommentsthetwoDanKen Cyree,from editor(Bill Christie), anonymousreferees, Bradley,CorieHulen-Hill,JuliaIngram,BonnieVanNess,RobertVanandZietlow wellas sessionasNess,JimWasham, JohnatFinanceAssociationAnnualandAssociationparticipants the2007 SouthernMeeting the2008 FinancialManagementAnnualMeeting.Financialsupportand researchassistance thisforprojectwas provided theCollegeofBusinessbyand Industry theWarrenandChairofReal Estateat MississippiStateUniversity.previousAversion thisofpaper was"titled"Determinants Operatingremain sole property thetheofWorkingCapitalPolicy:A FirstLook. All errorsofauthors.*Matthew Hill,CTP,is an AssistantD.inUSA.Professor Financeat theUniversity Mississippi Oxford,ofofMississippi,G. WayneState University Starkville,inUSA.Kellyis an AssociateProfessor Financeat MississippiofMississippi,MichaelJ.Highfield,RobertW WarrenChairofReal EstateatCFA,is an AssistantProfessor Financeand InterimofStateUniversity Starkville,inUSA.MississippiMississippi,’Please see thefollowing a fullreview thetradeforofcreditliterature:Melzer(1960), Smith(1987), Mian and Smith(1992), Lee and Stowe(1993), Biais and Gollier(1997), Emeryand Nayar(1998), Frankand Maksimovic(1998),Burkhart Ellingsenandand Sarria-Allende(2004), Atanasova(2007), Love, Preve,(2007), Cunat(2007), and MolinaandPreve(2009).theoretical integrativeand Laughlin(1980), Sartoris Hill (1983), andandworkingcapitalstudiesincludeRichardsandGentry,Vaidyanathan, Lee (1990).FinanciaiManagement ¢ Summer2010 ¢ pages 783 – 805This content downloaded from 198.246.186.4 on Mon, 25 Aug 2014 15:48:35 UTCAll use subject to JSTOR Terms and Conditions784FinancialManagement ¢ Summer2010mustassetsandliabilitiesnetinventories ofaccountsultimately be managedOperatingpayable.3tothisin concertthana condition paperattempts reflect.rather individually,As discussed Atanasovasupply(2007) andshown MolinaandPreve(2009),mostfirmsbybyitcreditfind easiertobetteraccess to tradefirmsanddemandtradecreditsimultaneously; withonWefinancereceivables inventory. use theWCR as itis comprehensive. focusing theandByareandtheofdistinguishablecapital, results implications clearlycomponent workingoperatingtolimited thecausesthatresearch is necessarilyincashthosefrompresented corporate holdingscash.4A positiveofand consequences holdingWCR, or conservativecapitalpolicy,workingorcash flow,firms financecanindicates needforadditionalausingfreeinternallycapitalthatvia commercialThus,conservativeworkingcapitalpoliciespaperor linesof credit.externallya negativecosts.costseitherworkingcapitalAlternatively,financingopportunity orexplicitimplyanfornetmeansthefirm’s operatingassets,financing long-termcapitalprovidesworkinggapstrategy.aggressiveoverthe1996to 2006forobservations 3,343companiesUsinga sampleof20,710firm-yearonorthewe findthat meanWCR is $296 million, 23% of capitalstructure, average.period,indeservescloser scrutiny,behaviorthatworkingThis statisticparticularlycapitalsuggestsfixednetthatincreased workingof Fazzariand Petersen’scapitalreduces(1993) findinglighttorelated thearereturns negativelyandthatandinvestment evidence profitability risk-adjustedShinandSoenen,1998;Deloof,2003).5cashconversioncycle(e.g.,ofonthefocuses study thedriversisacrossall models theWCR,whichvariableThedependentoffor jointeffect receivables,andbehavior accounts thenetoperatinginventory,workingcapitalnetbetween operatingofevidence strongTheandpayables. resultsworkingrelationshipsprovideWCRSince a positiveandsales growth sales volatility).conditionsand operating(e.g.,capitalor externally.tomustdevisea strategy acquirefundsmust financed,beinternallymanagementexternalonthatindicate theWCR depends internaltheresources,financingAccordingly, resultsdistress.and financialmarketAdditionally,access,negotiatingability,costs,capitalfinancingweWCR-to-salesvariable theannualmeanindustry-leveltheratio,byby adjusting dependenttheevidencewe presenteffects.toarethatconfirm theresults robust industryregardingFinally,Theofandbehavior thedegree industrybetweenrelationcompetitiveness. resultscapitalworkingeffects.andtimetoarerobust econometricheterogeneity,firm-specificspecification,theinfluence WCR evenandconditions financingthatOur resultsabilityoperatingsuggestofthethatandwe infer quantifying efficiencyforafternorms,capitalworkingadjusting industryratiosuchas industry-level comparisons,traditionalmethods,usingmanagementcapitalworkingisthancaveatsbeandinferences should accompanied evengreaterbymaylead to questionabletomethod benchmarkanhereprovide improvedoperatingHence,themodelspresentedtypical.behavior.capitalworkingasofThe remainder thepaperis organized follows.SectionI discussesthe hypothesizedIISection describescharacteristics.financialvariousthebetween WCR andcorporaterelationshipliabilitiescurrentassetsnetof cashminusastheand3Shulman Cox (1985) define workingcapitalrequirement currentWeanddebtandnetofnotesexpenses accruals. use themodifiedprepaidincludinglong-term due,thuspayable currenttheversiontheforofversion theworkingFirst, simplifiedparallels cash conversioncapitalrequirement tworeasons.inofexpensesand accrualsare notwell developed theextantprepaidimplications holdingcycle.Second,theoreticalliterature.and(2007)andMauer, Sherman4Kim,(1998), Opleret al. (1999), OzkanandOzkan(2004), andDittmar Mahrt-Smithresearch.cashofandmethods findings corporate holdingstypicalexemplifywhileDeloofandofaShinandSoenen(1998) use thenettradecycle,cycle, variation thecashconversionSpecifically,theandLaPlante, Mousawwi(2008) estimate valueofnetcycle.Also,Kieschnick,(2003) use thecashconversionJegerscapital.workingoperatingThis content downloaded from 198.246.186.4 on Mon, 25 Aug 2014 15:48:35 UTCAll use subject to JSTOR Terms and Conditions«&Hill,Kelly, Highfield Net OperatingWorkingCapital Behavior:A FirstLook785andIIIthetheandstatistics specifies model.Section presents resultsthesampleanddescriptiveourIVSection provides conclusions.I. Hypothesis DevelopmentA. Operating Conditions1. Sales Growththebetween WCR andbutaffectsSales growthcapitalbehavior, therelationshipworkingandcreditrelaxedForexample,issales growth complicated potentialproblems.endogeneitybywhenusingcontemporaneoussales causingreversecan stimulatecausalityinventorypoliciesandtoSimilar Love,Preve, Sarria-Allendevariable.assales growth an independent(2007) andsales growth.6thisMolinaandPreve(2009), we mitigate problem laggingbytorelated laggedsales growth,iscredittradeMolinaandPreve(2009) findgranted inverselyachievecreditfirmswiththatandtheypolicyas theygrowthtightenperiodpriorgreatersuggestsourcesof fundsto thespontaneousWithlevelsof sales growth.bygeneratedrespectplannedarethatandsalesgrowth,Petersen Rajan(1997) andDeloofandJegers(1999) indicate payablesSincetheWCRtherelationbetween variables.therelated growth,tosupporting expecteddirectlyonofandtheeffect salesgrowthofis thenetresult thefirm’sbehavior,workingcapitaloperatingthebetweenanwe expect inversetheis notclearfrom previousliterature,relationshipinventoryasisWCRs andlaggedsalesgrowth.changeLaggedsales growth defined thelaggedpercentagetin sales overtheperiod 1 to t.2. ContributionMarginand thenviaOverthetypicalinventory payablesacquireand financeoperatingcycle,firmsonbeforereceivablestofinance marked-upthecollecting thesale.throughproduct customersexceedsthedollarvalueof aofSincethedollarvalue of a good in terms receivablesgenerallytheWCR. Thus, expect WCR andwetoeachunitsoldcontributes an increasedgoodinpayables,orfirms multiplesellSincemostsampledrelated.arecontributionproducts aremargin directlycostofofasthe(GPM), defined theratio salesminusmarginconglomerates, laggedgrossprofitcontributionmargin.7goodssoldto sales,is usedtoproxy3. Sales Volatilitytolevel moredifficult determineindeviations demandmaketheoptimalinventoryHigherthatconfirmsto sales volatility.a rationalincreased(1987)Emeryresponsemakinginventoryinsalestotowill findit advantageous increaseinventory response increasednot all firmsittoinreceivables find optimalcostadvantages financingfirmswithFormayvolatility. example,ofdueThatcredit customers. is,to avoidthebuildup inventory to decreasedtoextendadditionalaccesstomorecreditterms.canfirms moveinventory offering attractivedemand,Widespreadbyincostcommercialaffords advantages financingfinancialinnovations as asset-backedsuchpaperthaninventory manyfirms.forwouldbe cheaper financetoreceivablesreceivables,meaningare mixed.Using a sampleof industrialfirms,Long, Malitz,and RavidfindingsEmpiricalintowevariablesused inthisstudy.6Whenconcerns, lag all independentapplicable, an effort mitigateendogeneity7Grossnoforandoffers waytoindividualizecontributionproduct, Compustatprofitmarginaggregatesmargins individualthesemargins product/division.byThis content downloaded from 198.246.186.4 on Mon, 25 Aug 2014 15:48:35 UTCAll use subject to JSTOR Terms and ConditionsFinancialManagement » Summer2010786Inforviewcredit. contrast,(1993) provideempirical(1987) operational oftradesupport Emery’sDeloofandJegersnobetweenreceivables salesvolatility a sampleandforof(1996) find relationfirms.andandAlso,resultsBelgianindustrial wholesalepresented Ng, Smith, Smith(1999)byinthatdotocreditterms.8suggest firmsgenerally notrespond deviations demand alteringbydemanded firmsshouldrelatetofirmswithSpontaneousbydirectly salesvolatility;financingmoreunpredictablerevenueshavegreaterneedsanddifficultyforecastingday-to-dayliquiditywithvolatilesalestend rely payables enhancetoontocashflow.Thus,firmssubsequentfunding.Due to conflictingevidenceempiricalreported Long,Malitz,and Ravid(1993), Deloofandbyandbetween netinvestmentoperatingthein(1996),andNg,Smith, Smith(1999),thelinkJegersandiswethetherefore, do notpredict signworkingcapital salesvolatility an empiricalquestion;ofthesalesvolatilityvariable.Sales volatility thestandardisdeviation a firm’sofannualnetsales overa rollingfive-yearForthetodeviation sales for2006ofperiodprior each of thesampleyears. example, standardinis calculatedoverthefive-yearofobservations included theareperiod 2001-2005.Firm-yearhasobservationsthesamplefora givenfive-yearyearifthefirm at leastthreeduring previousisasmeasureThus,salesvolatility designed a backwardperiod.lookingalleviatingendogeneityconcerns. salesvariabilityThemeasure scaledbynetassets,isdefined totalasassetsminuscashandshort-terminvestments.B. Abilityto Finance Operating WorkingCapital1. OperatingCash FlowtoaaPositivecashWCR, allowing moreconoperating flowenablesfirms finance positivefuturesales growth.servativeHowever,workingcapitalstrategy,therebyfacilitatingoperatingsources.aWCR throughotherwithnegativecash flowsmustfinance positivefirmsoperatingbetween tradecreditnetacorrelationand Sarria-Allendeestimate directLove, Preve,(2007)weinmarketcountries.and cash flowfora sampleof firms emergingConsequently, expectacash flowToassociationbetweenWCRs and cash flow. relieveconcerns,endogeneitypositiveminusincometaxesscaledbynetbeforeincomeis measured laggedoperatingasdepreciationassets.2. AsymmetricInformationand Costs of External Financingforamarketsextract premium theexternalthatandMyers Majluf(1984) demonstrate capitalandasinformationalofwithprojects cashflowsasymmetries suchfirms’financing firmsgreatertheandaorder exhaustingfirms follow financingtoaremoredifficult valueleadingtopeckingWelessAbeWCR must financed. expect transparentoffirst. positivelowestcostsources capitalinformationalwithWCR sincefirmstofirms havea reducedpayasymmetriestypicallygreaterforratioTheratesto borrow. laggedmarket-to-book is used as a proxy thedegreeofgreatervalueof equityis defined thesumofmarketasmarket-to-bookwhereinformation,asymmetricbetweenrelationanscaledbynetassets.We expect inverseminusand totalliabilitiespayablesratio.theWCR andthemarket-to-book3. Capital MarketAccesstheaccess are morecapable of financingfirmscapitalmarketCreditworthy withsuperiorfirms coveredareBrennan Hughes(1991) arguethatandlargercapitalgap externally.workinginindustries.data firms variousand(1999) use survey for8Ng,Smith, SmithThis content downloaded from 198.246.186.4 on Mon, 25 Aug 2014 15:48:35 UTCAll use subject to JSTOR Terms and ConditionsHill, Kelly, & Highfield » Net Operating Working Capital Behavior: A First Look787moreintensely analysts,whose increasedreducesinformationalbymonitoringasymmetries,tofirms.Sincethisstudythatfirmsaccessto capitalrelative smallerimplying largerenjoyreadywecommercialexamines determinants netoperatingtheofpaperworkingcapital, emphasizeissuesandbankdebt.relaxedcredit inventoryandsmallerfirmsWhilelargerfirms iteasierto financefindpolicies,linesof credit.Withfewerareless able to issuecommercialwaysto financepaperor negotiatefirms.9Whitedthatfirms onfactoring thanmoresmallerreceivables,(1992) finds largerlargerelythanfirmssincetheformerhavebetterfirmsface fewerconstraints smallercapitalborrowingarerelated sizetothatmarketaccess.10Petersen Rajan (1997) suggest receivables directlyandarerelated size.Accordingly,tothatandDeloofandJegers(1999) report payables insignificantlyinbetween netinvestment operatingtheawe expect directworkingcapitalandsize.relationshiptomarketvalue of equityofWe use thenaturallogarithm thelaggedannualinflation-adjustedsize.proxy4. MarketPowerrelated markettoasvaluablecustomersThelength tradeofcreditterms directlyarepower morefirmswithmarketcredittermswithcannegotiatemoreAdditionally,greatergeneroussuppliers.withlittleas contractswiththetermsoffered supplierssharecan stretch creditrepercussionbyofleadersare critical theviability smallertosuppliers.Similarly,strongrelationshipsindustrywithtowithvendorsallowfirmsmarketpower holdless inventory.greaterwithmoremarkettocanshortertermswithpowerrelative customers negotiateSuppliersisforcustomers at leasttworeasons.forthelevelofcompetition rivalfirms reducedfromFirst,ofinfirmswithmarketthelikelihood losingcustomers a reductionovershare,largedecreasingcreditterms.withgreatermarketsharearemorelikely haveforgedtoSecond,supplierslongerwithcostsof switchingThese switchingcostssuppliers.relationships clientsimplyinghigherincludeand transactions as documented Klemperercostsand Chevalierandlearningby(1987)incompetitiveScharfsteintothat,(1996). MolinaandPreve(2009) indicate whencompared firmsinfirms concentratedindustriescreditextentwhenfacingindustries,tightenpoliciesto a greaterfinancialdistress.wefirmswithtofewerreceivOverall, expectgreaterpower havemorepayables,negotiatingThatofmarketWCR.ables,and less inventory. is, thenetimpact increasedpoweris a reducedWe measuremarketasofannualsales to thetotalannualsumofpower thelaggedratio a firm’ssalesin a givenwithratiosincreasedIndustriesareindustry greaterimplyingnegotiatingability.defined theFama-FrenchWeWCRs to be inverselyrelatedtoby(1997) classifications. expectmarketMarketisfortopower.power a firm-specificproxy thefirm’sability negotiatebilaterallyas bothclient supplier.and5. Financial DistressDistressedfirmshave limitedfinancialslack and cash generatingandofability, the strainfinancialdistress causefirms reducetoininvestmentoperatingmayworkingcapital collectingbyonreceivables,creditandcredittermsterms,tighteningliquidatingexistinginventory, stretchingMolinaandPrevethatdistressedfirmshavegranted suppliers.by(2009) demonstrate financiallyreducedlevelsoftradecreditrelative theirtonondistressedWesignificantlycounterparts. expecttheWCR to correlatewithdistress.inversely financial9isaccounted andso itsinfluence notobservedforisheredueto dataavailability.Factoring notexplicitlystudiesuse size as an inverseofconstraintand10Many1988; Almeida,proxy financial(Fazzari,Hubbard, Petersen,andand2004; Faulkender Wang,Campello, Weisbach,2006).This content downloaded from 198.246.186.4 on Mon, 25 Aug 2014 15:48:35 UTCAll use subject to JSTOR Terms and ConditionsFinancialManagement * Summer2010788twotoasmustMolinaandPrevé(2009), a firmsatisfy criteria be classified finanFollowingbeandinterestmusthavedifficultypayments 2) itmustcovering1)ciallydistressed: thefirmincomeasaratiocalculated operatingisThecomponent having coverageoverleveraged. firstbeforedivided interestyearsor lessexpenseless thanone fortwoconsecutivebydepreciationifisratio inisathan0.80 in anygivenSecond, firm consideredoverleverageditsleverageyear.inIfmeetsbothconditionsratio a giventhetoptwodecilesofitsindustry’syear. a firmleveragein a givenDistress an indicatorthenvariable,>_i,equalsone andzerootherwise.11year,II. Data and MethodsA. Data Source and DescriptionfirmsnonallThe initialnonutility, ADR, and SIC-classifiablesampleincludes nonfinancial,12withovertheperiod1991-2006. We eliminatedatabasecovered theCompustatfirm-yearsbyvalue of equity,marketfinancialsales, negativedata,nonpositiveassets,nonpositivemissinginvalues.We includeinterestandfirm-years thesampleifthefirmexpense, duplicatenegativeain thepanel during five-yearthemakesat leastthreeperiodpreceding givenappearancesinarestudied theanalysis,whilenotdirectlyfiveobservations thefirst years,fromThus,year.13thetosetthecross-sectional in 1996. Finally, mitigate influenceto construct firstnecessaryofatfirm-levelratios winsorized the1% level.The finalsampleconsists 20,710areofoutliers,1996 to 2006, an unbalancedfromobservations 3,343 companiesforpaneldata setfirm-yearfirmofindividualandwithmaximum,minimum, meannumberequal to 11, 1,andappearances6.20 panels,respectively.oftheused to estimate determinants operatingforstatistics the variablesThe descriptiveisratio approximatelyinarebehavior displayed TableI. ThemeanWCR-to-salesworkingcapital19.8%. Thus,approximately$0.20 of each dollarin sales is tiedup in netoperatingworkingincashamountatogiventhereduction freecapitalequating just over$296 million, nontrivialvaluethisrepresents.flow marketandtheratiotheunreported, meanWCR-to-total-assets is 22.7%, illustrating magnitudeThoughistodevoted operatingof a firm’sworkingcapital.This statistic as strikingcapitalstructureandratioas themeancash-to-total-assets of 22.0% reported Dittmar Mahrt-Smith(2007),bythanmuchmoreattention itsoperatingofcapitalreceivescomponent workingyetthefinancialWCR-to-total-assets itofGiven size andimplications thereportedtheratio,averagecomponent.11variableFINDIST is a binarydistress.forMolinaandPreve(2009) use threeFirst,equal to one ifaproxies financialisonedivided interestincomebeforeascalculated operatingfirm’sexpense, lessthan forbyratio,depreciationcoveragevariableFDLEV is a binaryratiois less than0.80 in anygivenyear.Second,ortwoconsecutiveyears, ifthecoveragedescribedtheinisyearandmeets conditionsleverage a givenequal to one ifthefirm in thetoptwodecilesofindustryconsecutivethatasdistress a firm has had threefinancialdefinetheyearsoflosses,byFINDIST above.Third, authorsasandmeasures we use thisdefinition thevariableofFDLEV themoststringent thedistressLOSSFD. We considerDistress.areused in theanalysis as follows:Sales growthandmnemonic codes forvariables12The(SALECHG1,CompustatTaxes-TotalBeforeIncome(TXT,A16), Total(OIBDP, A13), IncomeDepreciationnone),Sales (SALE, A12), OperatingInvestmentsAssets(INVT,A3),Accounts(RECT,A2), Inventory(CHE, Al), Receivables(AT,A6), CashandShort-TermValueof Equity(MKTVALF,none),TotalLiabilitiesMarketExpense(XINT,(LT, Al 81), InterestPayable(AP,A70),AccountTaxes-IncomeStock(PSTK, A130),Deferred(TXDI, A50),A15), CostofGoodsSold (COGS, A41), PreferredTotalandDebt-Convertible (DCVT, A79).13 use ofareforthreeobservations each firm lostduethedoes notconstrain datasetsincethefirstThelaggedvariablessalesvolatility.usedtothemethodology to estimateThis content downloaded from 198.246.186.4 on Mon, 25 Aug 2014 15:48:35 UTCAll use subject to JSTOR Terms and Conditions»&Hill,Kelly, Highfìeld Net OperatingWorkingCapital Behavior:A FirstLook789Table I. Descriptive StatisticsThis tableprovides samplecharacteristics 20,710 firm-yearstheofacross3,343 uniquecompaniesoverminuspayables sales at theendtotheperiod1996-2006.WCRis theratioof receivablesplus inventoryWCRsales. IndAdjWCRisof each year.WCRqis theratioof theaverageend-of-quarter to end-of-yearthebetween annualWCR and industryannualWCR for respectivethedifferencetheaverageyear.IndAdjtheWCR andindustryWCR for respectivethebetween quarterlyaveragequarterlyWCRqis thedifferenceisyear.GPM is theratioof sales minuschangein sales overthepreviousyear.Growth thepercentageofincomebeforecostof goods sold to sales. SalesVAR thestandardisdeviation sales. OCF is operatingliabilitiesM/Bis…

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