Conference Call - Mama"At that point in time it does not make sense that the debt ratio would have been higher since I don't think they issued any new debt until recently. I think it is probably because there has been more cash usage over the past year due to the recession."
As I understood it, the idea of the recent refinancing was for the purpose of securing better interest rates which should make debt repayment a little easier, but not change the overall ratios that much unless some of the debt was retired.
But the company might have retired some of the debt since the end of January (when the annual reports were compiled) which might account for the difference? Otherwise Value Line is way off...