Should a company like Walmart be $60+ billion in debt

#1
UTVOLKeith

UTVOLKeith

punished good deeds
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Jul 11, 2010
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#1
Do you consider Walmart a great company?

It certainly has produced several billionaires...

60 billion dollars in debt!

Without cheap lending and especially government assistance this company will go belly up when debt hits the bottom line.

How long would their cash pay the debt payments if they hit even cash flow?
 
#2
#2
What the?

Govt assistance? Cash on hand to pay off debt?

Crazy talk.
 
#4
#4
Their "book" assets are greatly inflated...if they have to sell >>> who is gonna buy????
 
#7
#7
GoBigOrangeUT said:
Earnings before interest, taxation, depreciation and amortization. Bottom line earnings.
Click to expand...

No it isn't bottom line. It's a proxy for cash flow in mature companies. Walmart maintains less than 2x cash flow in debt. Implying they're insolvent is idiotic.
 
#8
#8
BigPapaVol said:
No it isn't bottom line. It's a proxy for cash flow in mature companies. Walmart maintains less than 2x cash flow in debt. Implying they're insolvent is idiotic.
Click to expand...

No, it isn't. It's a proxy for net profit.
 
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#10
#10
what does anything have to do with anything if you have $60 billion in debt and your stock price is overvalued by a multiple of 3?
 
#12
#12
DC_Vol said:
You only have net profit after paying taxes, debt service, etc. Better proxy for FCF.
Click to expand...

who you gonna sell your real estate too and for what price?

Walmart really has little assets in the scheme of its valuation....especially considering it's debt...

lol

I would would not be wanting to hold it's debt!!!!!!!!!!!!!!
 
#13
#13
UTVOLKeith said:
who you gonna sell your real estate too and for what price?

Walmart really has little assets in the scheme of its valuation....especially considering it's debt...

lol

I would would not be wanting to hold it's debt!!!!!!!!!!!!!!
Click to expand...

Perhaps you should look at Sears Holdings. They hold a lot of real estate in their portfolio. Unfortunately, they don't generate much in line of profit.
 
#14
#14
DC_Vol said:
Perhaps you should look at Sears Holdings. They hold a lot of real estate in their portfolio. Unfortunately, they don't generate much in line of profit.
Click to expand...

options on walmart are liquid and easy to buy>>> meaning >>> that's the way i roll
 
#22
#22
Where's the link? Anyway, Obozo will just bail them out otherwise his constituents would be lost. Not that nobody else does they are just smart enough to know there's other places to go.
 
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