Originally Posted by
T-Vasis
Qantas debt relative to capital is ~45%, which is fine (under 50), and the debt-to-equity ratio is 1.3, which is also fine (under 2). Optimised capital structure in my view...
Bring the off balance sheet on balance sheet and the DE ratio is a lot less healthy.
Exactly why the genius in fort Fumble spent AUD $1.75 billion on share buy backs when a new fleet was desperately needed.
For what it is worth, DE ratios in the aviation industry are on average a lot higher than 50%...
Good riddance. For the long suffering staff left at Qantas the forlorn hope is that the next on the conga line in Corporate Australia has a little less ideological drive and a little more humanity. Given the recent disaster in the UK, one may hope he pays a little closer attention to the wanderings of little Napoleon than he did with hardware.