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General Electric Company Message Board

  • fuzzhead72 fuzzhead72 Feb 19, 2009 2:04 PM Flag

    Why debt 50X cash on hand?

    Someone told me to look at GE as a possible investment, now that it looks so cheap.

    However, the first thing I noticed was that the company only has about 2% cash compared to the huge debt it has racked up.

    Can anyone tell me why the debt of this successful company is so large? If they are profitable, I would think they would have used the profits to pay down the debt to some sort of manageable level.

    Why isn't the debt something more reasonable - like 10 times cash on hand? Did they recently use a lot of cash to pay down debt, or something like that? Thanks!

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