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Profitable companies such as MSFT, G, FB, etc likely not in debt nor need the money. Only the distress companies (Oil, Travel, Restaurant, Airlines) need debt
by srcmap 6y ago
Profitable companies such as MSFT, G, FB, etc likely not in debt nor need the money.
Only the distress companies (Oil, Travel, Restaurant, Airlines) need debt more than anyone else.
- Daho0n 6y agoSure they are. Almost everyone does, to the point it is really hard to compete if you don't make some magic debt too. They transfer money from country X to country Y, then a company owned by themselves build them a new warehouse for more money than the local branch have left and voilà, they are now in debt to themselves and don't pay taxes because of it while they get richer because they were already profitable. The richer the company the more they likely do this.
- julienb_sea 6y agoLiterally every company takes on large amounts of leverage (debt) because they can likely produce more value with the $ than the interest payments on the debt. Just because you have the cash doesn't mean it makes sense to not take on debt.
- slavik81 6y agoApple Inc. currently has $196 billion dollars in cash and $112 billion in debt.