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Re: Re: Please strike this bogus posting from our BBS


Outer Bamnks diving on the Great Escape Southern California Live-Aboard Dive Boat


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Posted by Anonymous on December 22, 2008 at 09:17:41:

In Reply to: Re: Please strike this bogus posting from our BBS posted by scott on December 22, 2008 at 07:05:46:

In this marketplace short term debt is not the issue, nor is the income statement. It is the long term debt, their ability to service that debt and what covenants they have in place. If they fall out of compliance with the covenants then all long term debt becomes short term debt and in this economy businesses are not able to refinance their debt on favorable terms and end up filing bankruptcy. You also need to look at their cash flow from operations to see how quickly they are burning through the cash.

Cash Long Term Debt Cash Flow from Operations

Sport Chalet $4.6M NONE $243K
Dick’s $41.6M $357M (-$87.8M)


Yes, while Dick’s has more cash and has a positive profit margin, they also have a ton of debt and technically burn through more cash than they generate every year. Bad combination.




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