Stimulus & Bailout Watch Thread

[CrimsonTider]

Another breh made a good point, it’s crazy how these companies are comfortable basically living check to check like most people.

I don’t know why companies in industries like the airline industry that has small margins and are very vulnerable to environmental changes don’t keep more in cash reserves.

For example, Ford has 37 billion in cash on hand while Delta has just 3 billion. Even taking their revenues into account, Delta should have more in its cash reserves.

you can’t compare running a business to Personal finance.

Cash does nothing for a business just sitting there.

 

[Robbie3000]

you can’t compare running a business to Personal finance.

Cash does nothing for a business just sitting there.

Maybe that’s a paradigm that needs to shift. Maybe companies should be thinking more like Apple and less like Delta.

 

[Loose]

This is short term

 

[CrimsonTider]

Maybe that’s a paradigm that needs to shift. Maybe companies should be thinking more like Apple and less like Delta.

2 different business models and Apple is unique to all other companies for that matter

an airline has huge long term capital expenditures outlays to build plans

cash is going to be reinvested in the company or used to pay down debt

When you project a pullback in the company coming you scale down investment And debt but no one could see this coming

 

[Robbie3000]

2 different business models and Apple is unique to all other companies for that matter

an airline has huge long term capital expenditures outlays to build plans

cash is going to be reinvested in the company or used to pay down debt

When you project a pullback in the company coming you scale down investment And debt but no one could see this coming

What?

I know you probably think you sound smart right now, but there are companies in all types of industries with high cash reserves.

Here are the 10 companies with the most cash on hand

Apple, Ford, Google, Birkshaire etc.

 

[winb83]

you can’t compare running a business to Personal finance.

Cash does nothing for a business just sitting there.

It's insurance in the event of a downturn.

It's like your personal emergency fund. It does nothing for you but it's insurance.

 

[CrimsonTider]

What?

I know you probably think you sound smart right now, but there are companies in all types of industries with high cash reserves.

Here are the 10 companies with the most cash on hand

Apple, Ford, Google, Birkshaire etc.

Did you really just google companies with cash on hand at a point in time to refute my post?

My point was that companies that don’t have cash on the balance sheet doesn’t mean they’re being mismanaged

 

[NkrumahWasRight Is Wrong]

Someone tag me when theyre debating this on CSPAN

 

[CrimsonTider]

It's insurance in the event of a downturn.

It's like your personal emergency fund. It does nothing for you but it's insurance.

But in business the point is to grow. Having cash on the balance sheet means you’re leaving an opportunity to grow on the table

companies have business interruption insurance and credit facilities for downturns

 

[Robbie3000]

Did you really just google companies with cash on hand at a point in time to refute my post?

My point was that companies that don’t have cash on the balance sheet doesn’t mean they’re being mismanaged

And my point is if you are in in an industry that is sensitive to environmental pressures like the airline industry maybe it makes sense to have large cash reserves instead of buying back stocks and running to the government for bailouts whenever something goes wrong.

 

[NkrumahWasRight Is Wrong]

And my point is if you are in in an industry that is sensitive to environmental pressures like the airline industry maybe it makes sense to have large cash reserves instead of buying back stocks and running GM the government for bailouts whenever something goes wrong.

They obviously just figured they'd get bailed out if they were about to fail

 

[CrimsonTider]

And my point is if you are in in an industry that is sensitive to environmental pressures like the airline industry maybe it makes sense to have large cash reserves instead of buying back stocks and running GM the government for bailouts whenever something goes wrong.

Now if you wanna argue about what they do with cash then that’s different argument

Stock buybacks should be illegal.

but saying companies should have cash just to have cash really isn’t the best management practice imo

 

[Robbie3000]

But in business the point is to grow. Having cash on the balance sheet means you’re leaving an opportunity to grow on the table

companies have business interruption insurance and credit facilities for downturns

Why are they begging for hand outs if they have insurance and credit facilities?

Man, y’all gotta get away from this type of conventional thinking.

 

[CrimsonTider]

Why are they begging for hand outs if they have insurance and credit facilities?

Man, y’all gotta get away from this type of conventional thinking.

Because they know they will get it.

 

[88m3]

He's not going to answer this.

The left has been routed.