RE: RE: Payout ratio: company reply The whole situation of finance is always complex !!
I do agree with the company on how they calculate the P.R, and I believe in time they will work their way towards another standard. You have to remember if they threw out different numbers after the conversion it would confuse people.
Also I believe the company is doing a GREAT job of managing the resources of the company. Even if the payout was 109% that is very good for a company that is ramping up buying 12/14 airplanes in a short period of time. So of course they are spending more than they earn at the moment. But that will change by Q3 when they will be paying interest only as all planes will have been delivered. That in my opinion in NOT long term.
You stated "Bit by bit the retained earnings will disappear and become a deficit until all the share capital is consumed." Do you see that is happening now? Nope it isn't, share capital went up last Qtr.,
All in all I believe the company has made good decisions, and hope that AC will settle down and just accept the value that Chorus offers them instead of trying to nickel and dime every supplier.
That's my two bits worth :)