Jozef,
I applaud you for researching this issue. Anyone who states that AMD is on the "brink" of bankruptcy, truly does not know what they are talking about. Of course, any company can file bankruptcy due to a sequence of bad "events"...
When looking at debt, one wants to look @ several ratios (and I do not expect you to calculate them, however for extra credit you might <gggg>)
Debt to Assets Ratio (exc. goodwill): Debt/Assets
Debt to Equity Ratio (exc. goodwill): Debt/Equity
Times Interest Earned(TIE) ratio: EBIT/Interest Exp.
CFO to Debt: Cash Flow from Operations/Debt
These are some good things to consider, but remember they are just "numbers on a page". Then one would look at, in the broadest sense, simliar companies, such as MOT, TXN, INTC, NSM, etc.
And determine those companies numbers and then compare.
Good work tho. |
