Quote:
Originally Posted by Georgie
you don't need to look at it from an economic perspective even. i can see where you argument comes from just looking at Ford's balance sheet. however, we don't know enough information or have gone through enough quarters to know if they will run out of cash. if they can keep their cash and cash equivalents where they are, if they can keep paying on their long term debt (i don't know the term length) and if they can start reporting positive net income before the end of next year, then there is a fair chance they can pay down their long term debt. it is very possible, but you are right, currently their financial position, from a balance sheet perspective, is not strong. however, investors are betting (their stock price is up despite their balance sheet) that given enough time and effective management, it can attain a cash flow position that will allow them to pay down their debt more quickly and work towards a profitable long term position
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Yep very true on your point as well. Only problem with this is they arent bringing in enough cash flow to sustain and cash flow is mostly outgoing not incomng. They are on a loss like everyone else, but you are right in the long term it is still up in the air. Hopefully it turns around sooner than later for all, but personally I dont see it happening in the next year. I think this is gonna be a long ride for all.