said by J E F F:
On topic of Rogers, are they in bad as a financial shape that some claim? Like, they're making profit but they have a crap load of debt.
Making money and how much debt one carries are MUTUALLY exclusive.
You can make a boatload of money AND You can have a BOATLOAD of DEBT .... the relationship is important from the following perspective:
How PERSISTENT is the CASH FLOW positive and can THAT cash flow service the DEBT without damaging operations.
What is dangerous is when DEBT levels cannot be sustained due to eroding profit margins and
declining cash flow. [this one sentence has a lot of stuff I will not go into because I do not want to spend the time educating you on how BUSINESS works].
SO far Rogers seems to be able to sustain their VERY heavy debt levels due to their very positive cash flow and strong profit margins that are consistent. When profit margins start to slip and show persistent weakness THE LENDERS become very nervous and tighten their conditions on how the company operates.--
IT-Expert on Call
Information Technology for Home and Business