RE:Nukester's Conundrum: NCIB Vs. Debt Vs. Kasking-RiskGood analysis...but IMO down a rabbit hole a bit in your exuberance to play with the numbers
High level view is that there are only a limited number of options in capital management.
Once all taxes are paid and you have a clear profit number....
1) ensure proper balance sheet capital mix---working capital, use of debt etc ...to run company
2) invest in growth (facilities, staff etc)....grow revenues
3) invest in "margin" by reducing fixed costs\improve methods\techniques etc...grow profit
4) pay down debt....debt management priorities
5) returns to stakeholders via dividends and NCIB activity
Our understanding is that 1-3 are taken care of....except MAYBE they are bulding a war chest to weather any storm they see from their own KPI's...(signs of economic issues) ....we will know revenue number on release...management knows now...so maybe they are adjusting #1 to beef up the balance sheet
With interest rates up, #4 may be a priority...
Both are solid priorities that could explain parking cash