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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRAF | BOMBF | BDRBF | T.BBD.B | T.BBD.P.B | T.BBD.P.C | T.BBD.P.D | BDRPF | BDRXF

Bombardier Inc. is focused on designing, manufacturing, and servicing business jets. The Company has a fleet of approximately 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments, and private individuals. The Company designs, develops, manufactures and markets two families of business jets (Challenger and Global), spanning from the mid-size to large categories. The Company also provides aftermarket support for both of these aircraft, as well as for the Learjet family of aircraft. The Company's robust customer support network services the Learjet, Challenger, and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Italy, Austria, The United Arab Emirates, Singapore, China and Australia. Its jets include Challenger 300, Challenger 350, Challenger 3500, Global 5000, Global 5500, Global 6000.


TSX:BBD.A - Post by User

Comment by MyNameIsNobodyon Aug 03, 2023 11:39am
160 Views
Post# 35571282

RE:Bombardier has debt problem

RE:Bombardier has debt problem I agree with what you wrote here but not on the subject, Bombardier already is doing a nice job of managing the debt, well since Eric Martel and Bart Demosky were hired.  It's a problem because it's always nicer to have a better debt ratio though.

What you're suggesting about the debt was mentionned as a possibility by Eric Martel this morning.  (using some of the next 2 quarters's revenu to lower the debt)

Today is weird but not surprising at all but I haven't gambled with my shares hoping for a sell-drop-buy, kept everything.

Bullvsbear99 wrote: While in my opinion bbd did the right thing by  spending money building inventory to protect deliveries.  This did not sit well with investors as seen by the drop in sp.  

Last thing you want to see is inventory build up when you are heavy in debt.  However bbd's plan is working as deliveries were up and they reaffirmed 2023 numbers.  GD, Textron and Dassault deliveries are not as stable and at risk of not hitting target.

When bbd clears these inventories you will see better cash flow and inventory liability diminish.

What bbd is doing is for stability of production line and future growth.  And this is fine by me as a long term investor.

However when these money spent on inventories come back as airplanes are build and sold, i think some of it should go to pay down debt.  100 millions from cash on hand will go long way to prop sp while this turnaround is going on.


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