I don't understand why, but it seems like a lot of businesses keep a lot of debt. Look at k,f,gm,ge,fnm,jpm, and gis. Gm and Ge together have almost half a trillion in debt. They have so little cash too. Fnm almost alone almost has a trillion in debt.
I just wonder how much debt they had years ago. The older generation of stock people talk about how high the pe ratio is now. I just wonder what the debt was like before. I bet it was nowhere near what it is today. That just makes the stocks look even more pricey. This looks like a credit bubble in companies as well as people.
If the companies can keep growing, and can still affoard the debt, why not pick up more debt? More spending will help the economy and it will help the big business in the end. What goes around comes around right? If the cycle breaks, I think we are in trouble.
I do not think it is just that Delhaize does want to reduce the debt, but no banks are going to take the risk of giving them much more credit.
As you stated debt is OK when it leads to growth. Delhaize has a lot of debt now with very poor growth. The debt payments now are taking away from the business, how could any more debt be positive right now?