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Strategies & Market Trends : Value Investing

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To: Michael Burry who wrote (6542)4/2/1999 4:55:00 PM
From: James Clarke  Read Replies (1) of 78659
 
Mike, if you're going to compare cash flow to interest to determine a coverage ratio, use the cash flow BEFORE interest payments, not free cash flow to equity. That $50 million or so of free cash flow is after interest is paid, so that can go to pay down debt. Their return on capital is extremely high.

JJC
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