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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?


To: Gary Kao who wrote (156278)1/19/2002 1:36:19 PM
From: Dave  Read Replies (1) | Respond to of 186894
 
Gary,

Debt is not necessarily a bad thing. The problem is when there is too much debt in a corporation's capital structure.

Think of "debt" as leverage. Some investors chose to utilize "margin", correct? As you know, if an investor utilizes margine, one adds leverage. By adding leverage, an investor can increase ones profits, or losses.

AMD has to pay off CL by using cash or spinning off more stock

They could also refloat a portion of that debt back on the fixed income market....

The reason why debt isn't necessarily bad for a corporation is because the Interest Expense is tax deductible. AMD's current ratio (Current Assets/Current Liabilities) is ok.