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Can companies like GAP and McD's have billion-dollar debt?

Scary numbers. Most RM companies don't have significant debt. The key word is significant. GE for ex. with revenues of 111,630,000,000 has long term debt of 71,427,000,000. Short answer, sure they can. The question is whether they are able to earn more than the capital costs in the operation of their business.

I generally put all of these figures into small numbers with large multipliers. GE's rev. becomes 111.63*10^9 or just 111.63 and note the common multiplier at the top of the list of metrics.

Hope that helps

Bruce
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