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So how would someone who "knows what they are doing" evaluate the credit risk of Twitter given only the information available to those outside of Twitter? You k
by Volundr 4y ago
So how would someone who "knows what they are doing" evaluate the credit risk of Twitter given only the information available to those outside of Twitter? You keep telling us how not to do it, so what is the right way, and what does that way tell us?
- oneoff786 4y agoI don’t know what is and isn’t available for Twitter. I don’t really care and my lack of a precise answer here doesn’t make the given answer more useful. But generally you would look at things like the current ratio, the debt to equity ratio, the interest coverage ratio; and of course a look at what’s changing in the business landscape, what the debt will be used for, what competition is doing, etc. You could also look at the credit ratings of companies which for Twitter looks like it was recently brought down to a B- and then removed due to missing information by S&P.