BCNU’s Customer Concentration: The BC Government
When I review the financial statements of a publicly listed company, I pay attention to changes in the disclosures of customer and supplier concentration because that determines pricing power and influence on the decision making of a company’s executives; A myriad of small and isolated customers is of little consequence when they individually complain because they are typically unaware that the product sold, or service rendered is fundamentally defective. When they wake up and connect, then class action lawsuits happen. But a large customer that represents 40%+ of revenues has tremendous influence on the direction of goods and services provided by the company.
Unorthodox Truth 