Originally Posted by
dera
No they are not. You are just admitting you have no clue how corporate balance sheets work.
Pro tip: It was you who started talking about debt to assets and got D/E and debt to assets mixed up in one sentence. I just said financing new aircraft does not have a big effect on that ratio. If you would have read my comment and understood it, you would have seen I only mentioned shareholders equity, not D/E that you came up with. Raw fact is, AAGs shareholders equity is around 9 billion in the red, where UA/DL are around 3-4 billion in black. Even the largest refleet will not drop these carriers anywhere near that number, I doubt they would even go to red.
Just one comment. I did a Masters. My courses in Cost Accounting and the capstone corporate Case Studies (which involved extensive analysis of corporate balance sheets) were taught by the former CFO of Cummins Diesel. I got an A in both courses. Our 3 person team in Case Studies were complimented by the former CFO, as being the best, most knowledgeable and insightful team in his 14 years as a professor, teaching that course. He thinks I have a clue how corporate balance sheets work.
At that point in time, he sat on the Board of Directors of 3 Fortune 500 companies. He fired questions at us, much as if we were presenting in one of his Board meetings.