The share of US companies whose debt service costs exceed profits continues to rise

Discussion in 'Wall St. News' started by dealmaker, Jun 14, 2020.

  1. dealmaker

    dealmaker

    ""
     
    Nobert and AKUMATOTENSHI like this.
  2. Without more information this is a meaningless statistic.

    A company with $100 million in debt service costs and $99 million in profits makes the list and so does a company with $100 million in debt service costs and no profits.

    What percentage of these companies are debt ladened oil and gas companies? What is the industry breakdown?
     
    apdxyk likes this.
  3. carrer

    carrer

    I would add that a better way to measure is to use the net dollar amount instead of number of companies.
     
    Nobert likes this.
  4. Nobert

    Nobert

    Even this curve doesn't look that much of a linear, more of an exponential, while the dollar curve would look even worse :/
    (Probably)

    Wonder how those charts looks in other nations. Heard Australians are good at making zombies too, Japan as well (?)
     
    Last edited: Jun 15, 2020
    carrer likes this.
  5. ironchef

    ironchef

    Don't think @chigrl understood business or finance. It is not profits that service debt, it is cash flows stupid.
     
  6. Cuddles

    Cuddles

    just issue corporate bonds, slap a BBB rating on them, and most importantly donate to Donnie's campaign and they should be golden