Merged: Virgin Blue Share Price - how low can it go and for how long?

[tsalta]

You have just won the idiots post of the year.....

What is really funny is when some clown makes a statement like the one above and the person who they were slagging off at is actually correct, or at least, more correct than the slagging clown.

Skystar, I think you have just won the idiots post of the year with that call.

Virgin Blue, does not have a debt to equity ratio of 66%. It does have a debt to equity ratio of somewhere in the vicinity of the 160% previously indicated.

Financial ratios lesson 1. The debt to equity ratio is the long term debt / shareholder equity. It is often confused with assets to liabilities but is a completely different measure.

The 66% quoted by VB in their annual report is a pseudo debt to equity ration where they have calculated Adjusted Net Debt/Adjusted Net Debt Plus Equity. By including the adjusted net Debt plus equity it is essentially and assets/liabilities ratio, NOT debt/equity.

I haven't calculated the actual figure but it is for sure in the range o2 quoted previously.

The debt/equity ratio has nothing to do with solvency which has been confused a couple of times here.

regards
tsalta