RE:RE:Will CXR's results be as good as Scotiabank is predicting?adamchess wrote: hi Scruggstyle, I was wondering - should we not be expecting a larger paydown of the debt in 2017? I was expecting closer to 300m. Probably more with greater than expected revenues, etc. Cheers
You are forgetting that the goal isn't to pay off the debt. You want to use cheap credit to finance growth and earnings, in order to maximize EPS. The goal is to reduce the debt to an optimal level, which very well may be in the 4x to 5X EBITDA range. For anyone that is confused by this or is being confused by some of the posts on here that appear to disagree with the above statements, I suggest that you don't just take my word for it, but rather google "optimal leverage and business valuation" or something, or contact a professional CBV or other knowledgeable person that you trust. JMHO. Yaaaawwn. Time for zzzzzzz's. Just finished work and will be back in the office by 8:00 a.m.