RE:RE:RE:RE:RE:RE:RE:Taking BBD private calculationsbbdaerospacecnd, whether "
majority of current liabilities (big number) are covered by revenues in the same year" is true need to be examined, look at the numbers there are big number of Defered Revenues, I think that is part of the revenues you meant which has already received. There are a couple of Billions (A/P+Deffered Revenues) cannot be coverved by current assets. Since current assets and current liabilities are moving numbers closely managed, it is better to exclude them when considering long term debt. Over there the first issue is interest payment which make revenue provides nearly no profits.
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Reading financial statements leaves no wishing space. The wishful thinking is the family would buy out when they al ready in control and cash is so tight for everyone. Surely there is possibility if not no, how much they would offer very likely be much less than you are wishing although I really hope dream comes true.
<br/>Let's be patient! I do have the two wishes I said in my post.
bbdaerospacecnd wrote: DunceMonk wrote:
‘The defect in “Taking BBD private calculations” is when you take current assets against long term debt, the current liability just been left out"
Answer: majority of current liabilities (big number) are covered by revenues in the same year
in my calculations I erroneously subtracted $1 bln from cash + cash equivalents which I should not have done when using "net debt" metric.
. Now, that subtracted extra billion of dollars you can add to $9.3 long term debt and keep $4.2 bln cash (I used $3.2 bln) to get the same Bbd value , I.e. I calculated "net debt "=$9.3-3.2=$6.1 bln
So,
taking the correct approach of $4.2 bln cash + cash equivalents:
net debt=$9.3 (long term)+ $1 bln (as extras that I am not aware of)-4.2 cash=$6.1 bln
(the same number as in my previous calculations but with $1 bln added to $9.3 bln long term debt).
'Where is wishful thinking here?/