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Wouldn't Ford then have assets, to cancel out of the debt? I imagine that "120B in debt" means net debt, but I'm not sure. [follow-up] yes, that's $120B net d
by civilian 5y ago
Wouldn't Ford then have assets, to cancel out of the debt?
I imagine that "120B in debt" means net debt, but I'm not sure.
[follow-up] yes, that's $120B net debt. They have a total $160B of debt, and ~$23B of that is from the automotive side of the business, not the financing side.
https://stockdividendscreener.com/auto-manufacturers/ford-total-debt-and-leverage-ratio-analysis/ https://stockdividendscreener.com/auto-manufacturers/ford-to...
- treis 5y agoThey do, but the GP was talking about the enterprise value. Kind of like taking the value of your home and subtracting the mortgage to get your equity. They're doing the reverse and adding equity + Deb to get the total value of the enterprise. That works if the debt is for things like building factories or designing cars. But when's it's borrowed and then lent straight out it doesn't make sense.