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Paying down debt shouldn’t affect net income. That’s a balance sheet item. If you earn $100, and keep it or use it to pay down debt, net income is still $100.
by jraby3 6y ago
Paying down debt shouldn’t affect net income. That’s a balance sheet item.
If you earn $100, and keep it or use it to pay down debt, net income is still $100.
- ksec 6y agoThat is Operating Income. Net Income takes out everything.
- marcosdumay 6y agoIf you start the year with -$100 in assets and end it with $0, that's $100 net income. It doesn't matter much if you add to a negative debit or a positive bank account. If AMD was investing into some non-formal asset (brand awareness, R&D, etc), the numbers would change, but that's not the GP's scenario.
- dkjaudyeqooe 6y agoThe only way paying down debts can affect income is by reducing interest expense, which would make income go up. If a debt was written off by a lender and would no longer be collected, that would affect income (although that's not "paying down") and would also increase income.