Sony expects first loss in 14 years amid downturn :(

[Slimebeast]

NJ5 said:

Slimebeast said:

NJ5 said:
The worse part is that during all those years of profits they were racking up debt instead of building up a money pile for times like these. That's a big part of why Sony will have a hard time recovering.

 

 How's that possible?

When you take up debt, that doesn't mean you're losing money. Like a person can have a paid job and get a loan at the same time. The only loss from taking a loan is the money paid as interest.

 

Hmm... I didn't think of it that way, that companies would do that like private persons. But why do they chose that kind of strategy, generally speaking?

Is it like money to 'different pockets' (share holders want their share of profits, but at the same time the company takes loans to invest in stuff)? Or is it due to "technical and tactical reasons", much like for private persons it's actually smart to save in pension funds but at the same time take low rate loans on housing which can be deducted from taxes and stuff?

(^did that make any sense?)