RE:RE:RE:Nuttal on VetDebt is a part of doing business. The kind and size of debt to carry will depend on the business and market conditions. Financing currents (A/P) is very different from financing a very long-term non-depreciable asset. Cash-only works with small-only businesses but stifles growth for anything else.
Book value is net of the debt held, so it is factored in.
lashing wrote: Debt is something these guys are all taught in university is a good thing. It drives me nuts. I ran my own businesses since my early 20's and I never used debt. Stayed away from debt and had umpteen of these guys tell me how crazy I was for not leveraging. That was right before the dotcom bust. I walked away with 100% cash. Most didnt.
Nuttall always glazes over debt and talks aout strong balance sheets. When I look at the balance sheets I think "woah, this is not a clean balance sheet". WHich brings us to his you could go private for 25% book right now ..... NOPE. You couldnt. That debt is never factored in his scenarios.
ppenystockjunky wrote: He's out to lunch on debt , cash flow , debt to equity ratio , interest coverage bla bla bla. Bottom line , debt will always come back to bite you eventually if you don't have a plan to eliminate it. Vet has way too much debt , they are doing nothing about it , and it will bite them big time soon.