The Motley Fool Discussion Boards

Previous Page

Learning to Invest / Reading Financial Statements


Subject:  debt when is too much bad vs good. Date:  3/31/2000  3:15 PM
Author:  BJKJ88JOHN Number:  1029 of 4014

Hello fellow fools. I have come to a quandry. I am confused by listening to the experts, Buffet, Lynch, Neff and Tom and David in regard to cash flow and debt.

When is taking on an enormous amount of debt okay outside of rule breakers? According to the experts the answer is never but yet I see a lot of people still think that SBC, LU, and ISCA are all great companies. According to the cash to debt ratio these companies should all suffer in a rising interest rate environment. Am I missing something. Please explain. ALso another rule maker Phizer has added quite a bit so when is too much debt too much? If anyone can relate this to the annual report on ISCA that would be most helpful since that is where my confusion all started. I understand they want to own all the tracks but did they jump in too much too quickly or no? Thank you for the help.

Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us