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> the company is now generating a profit excluding interest, taxes, depreciation and amortization (positive EBITDA) EBITDA and cash flow are useful metrics to
by roymurdock 9y ago
> the company is now generating a profit excluding interest, taxes, depreciation and amortization (positive EBITDA)
EBITDA and cash flow are useful metrics to look at when evaluating whether or not a company can service debt, but I'm wondering why they needed to open a $600M credit line last month if they are gearing up for an IPO?
I guess they need a bit of extra cash on hand to pay off taxes as well as interest on their last 2 loans (funding rounds) from JPMorgan?
- pacaro 9y agoIt's worth noting that they replaced an expiring $500million line of credit that had not been touched. So you may be reading a little much into what may just be prudent financial planning
- roymurdock 9y agoHadn't known about that, thx for the info, should have been included in the article. New credit line makes sense then, not much to see here.
- pgwhalen 9y agoIn the (approximated) words of Matt Levine, ask for credit when you don't need it, because when you do need it, they won't give it to you.