Originally Posted by
TenYearsGone
Excellent Analysis^^^^. Let me ask you a question. Why are Delta's Liabilities so high? The number reminds me of a situation that involves a person making $50k dollars a year and buying a $1Million dollar house. Something makes my stomach feel upset when I look at this. I always hear MGMT bragging about lowering the debt, but in reality, if you look deep, you will see Mr. Anderson has our TOTAL liabilities increasing year by year. UAL is in the mid 30s and AA is 41.
Total Liabilities 45,308,000
TEN
Oh no, you shouldn't feel upset over that number. Delta does not have $45 billion in debt, it has $7.4 billion in debt. Although, $15 billion of that is pension debt, but that's another issue. Liabilities are the cost of doing business paid for by revenue, or the delivery of a service. In other words, if I buy a ticket from you for say October of this year, it becomes a liability till you fly me to where I'm going. There is a breakdown of just what it all is in the SEC filings. The key number is the $7.4 billion because that must be paid.