No. of Recommendations: 0
In addition to the excellent reply from TMFSelena I would like to add the following comments relevant to International Speedway Corporation (ISCA).

disclaimer - I only spent about 15 minutes with their 10K so do not construe this to be a thorough analysis. If you are serious about this company, it would be prudent of you to double check my anlaysis and dig into the resaons for taking on the debt this year.

This appears to be a very conservatively financed company whose debt situation would not concern me as an investor.

While they increased their debt in 1999 the current portion of LTD is still on 2,655. Meanwhile their cash + short tern investment are 38,501. Even if they had a disastrous year, they would have no problem paying the interest on their debt this year, and probably the next, and probably the next.

Their debt / equity ration is farily conservative. While they have long term debt of 496,067 their shareholder's equity is over twice as much. This shows a company that is financed principally on shareholder's equity and not overly leveraged.

Looking at the income statement their interest expense for 1999 was 2.3. Meanwhile their income before taxes was 31.9. This is another sign that their income is sufficient to cover the debt payments and they can afford a substantial drop in income before servicing the debt becomes a problem.
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