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"The smart companies are debt free" - every company has debt. All of them. Apple pays for Iphone parts 30, 60, 90 days after receiving them. That's debt. The
by curiousllama 6y ago
"The smart companies are debt free" - every company has debt. All of them. Apple pays for Iphone parts 30, 60, 90 days after receiving them. That's debt. The only companies that don't take on debt are the ones that nobody will extend credit.
Hertz went bankrupt because of the type of debt they took, their lack of cash-on-hand, and the aggressiveness of their business model. But the expected value of their decisions may well have been positive - a single failure is a bad way to evaluate a decision-making methodology.
- perl4ever 6y agoWhen you say every X is Y, then you've obviously defined Y in a non-useful way. Every concept, to communicate information, has to distinguish between some things which it includes and other things it doesn't. If nothing else, there has to at least be a conceivable counterfactual world where Y doesn't hold for everything.
- curiousllama 6y agoEvery dodo is a bird - the concept of a bird is useful to explain what a dodo is (in part, at least). In this case, I happened to use manufacturing inputs for a specific reason: cars are the inputs to the end product of car rental companies. In the same way it makes sense to pay for product inputs after you've sold an iphone, it makes sense to pay for the cost of a car after you've made the money renting it. If you have to bootstrap, you can't leverage economies of scale nearly as effectively.