I agree. Another factor to consider is where that debt came from. Debt could come from heavy investment in breakthrough technology that would give a company a competitive advantage. Ford Motor did not go BK when GM and Chrysler did, because Mulally had borrowed heavily to restructure the company, before the economy collapsed. OR debt could come from a slow motion liquidation of the company to juice the price of the stock. What a Welch acolyte did to Boeing is now abundantly clear. Recently, I have been commenting on McDonald’s, a great business, very popular with customers, quick adapter of new technology, but the company is also being hollowed out by management.
Steve