Just a quick input into the debate on SilverJet's financials. I haven't had a look at the Financial Statements but don't get too interested in the profit/loss number.
Profit and loss is quite simply an accounting thing and is really quite meaningless. News reports (and banks) take far too much interest in it as it is relatively easy to work out and people think they know what it means.
The number that needs to be looked at (and sometimes estimated) is in the cash flow and is the net cash inflow from continuing operations, interest received, interest payable and lease finance payable. When going through you need to ignore asset purchase and new finance arrangements.
If this is negative, and remains negative on an ongoing basis, then the company is likely to not succeed. You can make a large loss regularly and still survive provided that this number remains positive. The only thing you can't do is pay dividends to your shareholders.
Last edited by AeroAccountant; 27th Nov 2007 at 05:32.