All good unless the whole country goes into lockdown.
Quote:
Originally Posted by
biker
Yeah, right
Yeah right indeed..."no problem" if the whole country has to go into lockdown for a few months after all AIR has current liabilities of $2.927 billion, well covered by current assets of $1.768 billion...opps oh wait....that's a shortfall of $1.15 billion shortly to be over $1.27 billion when the dividend is paid out
But lets not worry about that...those current liabilities include revenue in advance of just under $1.4 billion so we can take those off, or can we seeing as they are contractual obligations of the airline to fly customers....but how do they fly them if we're all in lockdown ?...they'll have to be repaid as flights are cancelled. No worries as the company has $1b in cash, opps less over $124m after paying shareholders, better make that $877m...so they can "easily" repay those flights. What could possibly go wrong...
Just as well the Govt is there as a backstop isn't it...another bailout potentially coming in a worse case scenario ? At what share price might the new shares be issued ?
Disc: Short - Still the best stock to short on the NZX despite the 24% decline in recent weeks, in my opinion.