Posted On: 08/19/2015 1:11:25 PM
Post# of 41414
Re: mopusmaximus #17088
In fact, some of you number crunching geniuses answer this: Which is more valuable: A company with a number of outstanding shares and no debt, or a company with fewer shares but mucho debt? I think Benster or Choov or someone post the debt /equity ratio of airlines in general:
From Investopedia:The average long-term debt/equity ratio of companies in the major airlines industry is 104.89, which indicates that for every $1 of shareholders' equity, the average company in the industry has $104.89 in total liabilities. Since the major airline industry is highly capital-intensive, companies in this industry tend to have high debt/equity ratios.
So which scenario is more valuable?
From Investopedia:The average long-term debt/equity ratio of companies in the major airlines industry is 104.89, which indicates that for every $1 of shareholders' equity, the average company in the industry has $104.89 in total liabilities. Since the major airline industry is highly capital-intensive, companies in this industry tend to have high debt/equity ratios.
So which scenario is more valuable?
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